An update has come out today on E.W. Scripps Company (SSP), in which senior media analyst Ann Northrop, CFA is restating her Hold rating on the company.  We excerpted the following details:

'Scripps is benefiting from rapid growth in its cable networks, where high-teens revenue growth and expanding margins are translating into rapid EBITDA growth. However, management has indicated that cable revenue growth is decelerating to low double-digits (10% expected in FY 2007), while ad revenue in the newspaper segment is rapidly decelerating, hurt by the slowing job and real estate markets and a battered US auto industry, in addition to a secular industry decline.

'To unlock the value in the company's fast-growing TV networks and online businesses, management recently decided to split these operations into a separate company from its moribund Newspaper business. In our view, this will clearly be a value-enhancing transaction.

'To boost shareholder returns, the company is buying back stock. During 3Q07, the company repurchased 650,000 shares at an average price of $42.13 per share, and on May 10, 2007, it increased the quarterly dividend by 17% to $0.14 per share from $0.12 per share. The current dividend yield is 1.3%.

'Further, management anticipates that revenue from the newspapers managed solely by Scripps will decline between 5% and 7% year over year in 4Q07, primarily due to weak classified and local advertising. Based on the slowness at the beginning of fiscal year 2007, management anticipates full-year newspaper revenue to be down in the low single digits. Thus, we rate the stock as Hold with a six-month price target of $45.00.'