Why E.W. Scripps Is Spiking 28%

Updated with afternoon stock movements.

CINCINNATI (TheStreet) -- Declining ad revenue at newspaper chain EW Scripps(SSP Quote) accelerated in the second quarter, but that didn't stop its chief executive from echoing the hopeful statements made by his media-executive peers all through this earnings season.

From CBS's(CBS Quote) Les Moonves to the New York Times'(NYT Quote) Janet Robinson, media CEOs have been using the press releases that accompany corporate quarterly reports to proclaim that signs of an ad recovery do indeed exist in the world.

For now, however, investors need to take those chieftains at their word, as any evidence for a recovery remains thin.

In Monday morning trading, investors appeared to do just that. Scripps shares were moving at $7.00, up $1.54, or more than 28%, on heavy volume.

The Cincinnati-based publisher, which owns the Memphis Commercial-Appeal, the Naples (Fla.) Daily News and 14 other small local dailies, said newspaper ad revenue fell 29% from a year ago to $79.4 million in the second quarter. That's faster (though just slightly) than the 28% year-over-year drop registered in the first period of 2009.

Television revenue, meanwhile, fell 24% to $61 million.

But Scripps CEO Rich Boehne made the now-familiar media-exec commentary on what looks to be, from his view, a developing rebound. "In the near term, we are seeing some slight improvement in the flow of advertising in our markets," he said, "particularly at the television stations, which have increased their revenue projections -- albeit very modestly -- during each of the past seven weeks."