In This Article:
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Total Revenue: Increased 13% year over year to $807 million.
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AMS Revenue: Slight increase year over year, driven by Summer Olympic Games.
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Subscription Revenue: Decreased 6% year over year to $356 million.
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Political Advertising Revenue: Approximately $375 million year to date through Election Day.
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Operating Expenses: Reduced by 2% year over year in the third quarter.
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Core Annualized Savings: On track to achieve $90 million to $100 million by the end of 2025.
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Capital Returned to Shareholders: $91 million in the third quarter, including $21 million in dividends and $70 million in share repurchases.
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Cash and Cash Equivalents: Totaled $536 million at the end of the third quarter.
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Net Leverage: Finished the quarter at 2.8 times.
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Full-Year 2024 Revenue Guidance: Reaffirmed, with GAAP revenue expected to be up 19% to 21% year over year in the fourth quarter.
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Effective Tax Rate Guidance: Lowered to 22% to 23% for full-year 2024.
Release Date: November 07, 2024
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) reported a 13% year-over-year increase in total company revenue for the third quarter, exceeding their guidance of 9% to 12% growth.
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The company achieved record political advertising revenue in the third quarter, emphasizing the strategic importance of their footprint in key battleground states.
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Tegna Inc (NYSE:TGNA) is on track to generate $90 million to $100 million in core annualized savings by the end of 2025, with approximately $50 million expected by the end of 2024.
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The company returned approximately $91 million of capital to shareholders in the third quarter, keeping them on track to meet their commitment of returning approximately $350 million in 2024.
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Tegna Inc (NYSE:TGNA) has a strong cash position with $536 million in cash and cash equivalents at the end of the third quarter, and net leverage finished the quarter at 2.8 times, below their annual guidance of 3 times.
Negative Points
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Subscription revenue decreased 6% year over year to $356 million in the third quarter.
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The automotive, retail, and home improvement advertising categories continue to be soft, impacting overall advertising revenue.
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Premion, Tegna Inc (NYSE:TGNA)'s digital advertising platform, faced challenges in the third quarter, contributing to a slight decline in overall advertising and marketing services revenue.
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The company faces ongoing challenges from the decline in traditional pay TV homes and TV advertising, with a shift towards digital platforms.
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Fourth-quarter expenses are expected to increase by 1% to 3% year over year, driven by growth in programming and Premion costs, despite cost reduction initiatives.