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TEGNA
🇺🇸 NYSE:TGNA
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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.

Total Revenue
$578M
Previous year: $537M
+7.6%
EPS
$0.12
Previous year: $0.35
-65.7%
Adjusted EBITDA Margin
21.5%
Gross Profit
$222M
Previous year: $252M
-11.7%
Cash and Equivalents
$173M
Previous year: $29.3M
+491.1%
Free Cash Flow
$96M
Previous year: $55.6M
+72.8%
Total Assets
$6.93B
Previous year: $5.41B
+28.0%

TEGNA

TEGNA

TEGNA Revenue by Segment

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

Company Overview

Full financial data and analysis

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