In This Article:
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Total Revenue: $680 million, a decrease of 5% year over year.
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Advertising and Marketing Services Revenue (AMS): $286 million, a 3% decrease year over year.
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Distribution Revenue: Flat year over year at $380 million.
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Adjusted EBITDA: $136 million, a 22% decrease year over year.
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Non-GAAP Expenses: Flat year over year; programming expenses increased, other expenses decreased by 4%.
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Cash and Cash Equivalents: $717 million at quarter end.
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Net Leverage: 2.8 times.
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Dividends Paid: $20 million in the first quarter.
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Adjusted Free Cash Flow Guidance (2024-2025): $900 million to $1.1 billion.
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Effective Tax Rate Guidance (2025): Lowered to 22% to 23%.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tegna Inc (NYSE:TGNA) is focusing on building a world-class team and company culture, which is expected to enhance execution and performance.
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The company is leveraging its strengths across stations to improve performance through better resource sharing, which has already shown positive results in Florida.
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Tegna Inc (NYSE:TGNA) is deploying technology, automation, and AI to run more efficient operations, including testing a new AI system to enhance newsroom capabilities.
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The company is growing its digital revenue by deepening engagement with its digital audience, with new apps in testing and AI-augmented software development boosting productivity.
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Tegna Inc (NYSE:TGNA) has secured exciting new sports rights deals, enhancing its local broadcasting appeal and providing more content for local sports fans.
Negative Points
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Total company revenue for the first quarter decreased by 5% year over year, primarily due to lower political advertising revenue.
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Advertising and marketing services revenue decreased by 3% year over year, impacted by macroeconomic headwinds and the Super Bowl airing on a smaller affiliate group.
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The company is experiencing softness in Q2 advertising demand, with consumer confidence declining and advertisers taking a cautious approach.
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Adjusted EBITDA decreased by 22% year over year, mainly due to lower political advertising revenue and AMS revenue.
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Tegna Inc (NYSE:TGNA) faces anticipated headwinds in the advertising environment due to recent shifts in global trade dynamics, which may impact future revenue.
Q & A Highlights
Q: Mike, you talked about the FCC and deregulation. Do you need to wait on future deregulation initiatives, or do you feel like the opportunities are already in front of you? A: Michael Steib, CEO: Chairman Carr supports local broadcasters, and deregulation could unlock M&A opportunities. We are open to deploying capital in ways that are accretive for shareholders, whether through strategic acquisitions or returning capital to shareholders.