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Jun 30, 2020
TEGNA Q2 2020 Earnings Report
TEGNA's second quarter performance reflected the execution of their five-pillar strategy amidst unprecedented market conditions, driven by acquisitions, subscription revenue growth, and political revenue, while managing advertising declines due to COVID-19.
Key Takeaways
TEGNA Inc. reported an eight percent increase in total company revenue, reaching $578 million. Subscription revenue rose by 37 percent, offsetting a 21 percent decrease in advertising and marketing services revenue due to COVID-19. The company achieved a net income of $20 million on a GAAP basis, and $27 million on a non-GAAP basis.
Total company revenue increased by eight percent year-over-year, driven by acquisitions, subscription revenue growth, and political revenue.
Subscription revenue increased 37 percent due to rate increases and acquisitions.
Advertising and marketing services revenue decreased 21 percent year-over-year due to COVID-19, but improved throughout the quarter.
GAAP earnings per diluted share were $0.09, and non-GAAP earnings per diluted share were $0.12.
TEGNA
TEGNA
TEGNA Revenue by Segment
Revenue by Segment
Advertising & Mktg Svcs Revenue
CapyFin.comPolitical Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
TEGNA anticipates continued subscription revenue growth and expects full year political advertising revenue to be at least $370 million.
Positive Outlook
- TEGNA remains uniquely positioned for continued subscription revenue growth due to successful negotiations at the end of 2019.
- TEGNA is expected to benefit from anticipated record political advertising spending this year.
- TEGNA’s strong portfolio of Big Four affiliates with strong local news remains the preferred medium to reach targeted constituents.
- TEGNA’s sales and marketing teams have innovated with advertisers to adapt to this dynamic environment.
- TEGNA will continue to provide purpose-driven, impactful local journalism to viewers and increase engagement with the communities they serve across all of their platforms.
Challenges Ahead
- TEGNA can't be certain when the broader advertising industry will fully recover from the challenges presented by the COVID-19 pandemic.
- TEGNA is facing risks relating to the coronavirus (COVID-19) pandemic and its effect on our revenues, particularly our non-political advertising revenues.
- TEGNA is facing potential regulatory actions.
- TEGNA is facing changes in consumer behaviors.
- TEGNA is facing impacts on and modifications to TEGNA’s operations and business relating thereto and TEGNA’s ability to execute on its standalone plan.
Revenue & Expenses
Visualization of income flow from segment revenue to net income