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Jun 30, 2021

TEGNA Q2 2021 Earnings Report

Announced record second quarter results and provided third quarter guidance.

Key Takeaways

TEGNA Inc. reported record second quarter total company revenue, subscription revenue, advertising and marketing services revenue, net income, and Adjusted EBITDA. The company expects to achieve the high end of new 2020 to 2021 free cash flow as a percentage of revenue guidance range of 21.5 to 22.0 percent.

Total company revenue was $733 million, up 27 percent year-over-year.

Subscription revenue was $375 million, up 16 percent year-over-year.

AMS revenue was $341 million, up 49 percent year-over-year.

Net income of $107 million on a GAAP basis.

Total Revenue
$733M
Previous year: $578M
+26.9%
EPS
$0.5
Previous year: $0.12
+316.7%
Adjusted EBITDA Margin
31.1%
Previous year: 21.5%
+44.7%
Gross Profit
$336M
Previous year: $222M
+51.1%
Cash and Equivalents
$57.3M
Previous year: $173M
-66.9%
Free Cash Flow
$124M
Previous year: $96M
+29.2%
Total Assets
$6.84B
Previous year: $6.93B
-1.2%

TEGNA

TEGNA

TEGNA Revenue by Segment

Forward Guidance

In the third quarter of 2021, TEGNA expects strong subscription revenue and the continued recovery of advertising and marketing services revenue to offset the loss of record political advertising, which was $116 million in third quarter 2020.

Positive Outlook

  • Total Company GAAP Revenue + Low-Single Digits percent
  • Non-GAAP Revenue (excluding political) + High-Teens percent
  • Subscription Revenue Growth + Mid-to-High Teens percent
  • Net Leverage Ratio Low 3x
  • 2020/21 Free Cash Flow as a % of combined 2020/21 Revenue 21.5 - 22.0%

Challenges Ahead

  • Total Non-GAAP Operating Expenses+ Mid-to-High Single Digits percent
  • Non-GAAP Operating Expenses(excluding programming)+ Mid-Single Digits percent
  • Corporate Expenses $44 - 48 million
  • Depreciation $62 - 66 million
  • Amortization $60 - 65 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income