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Sep 30, 2021

TEGNA Q3 2021 Earnings Report

Announced record third quarter revenue driven by record third quarter subscription revenue and record advertising and marketing services (AMS) revenue.

Key Takeaways

TEGNA Inc. reported record third-quarter revenue, driven by growth in subscription and advertising and marketing services (AMS) revenue. The company's improving subscriber trends and strong performance in AMS revenue contributed to the positive results. TEGNA has achieved the year-end target of low 3x net leverage, one quarter earlier than planned.

Total company revenue was $756 million, up two percent year-over-year.

Subscription revenue was $369 million, up 16 percent year-over-year.

AMS revenue was $364 million, up 22 percent year-over-year.

Net income was $128 million on a GAAP basis, or $123 million on a non-GAAP basis.

Total Revenue
$756M
Previous year: $738M
+2.5%
EPS
$0.55
Previous year: $0.59
-6.8%
Adjusted EBITDA Margin
32.3%
Previous year: 35.1%
-8.0%
Gross Profit
$357M
Previous year: $359M
-0.7%
Cash and Equivalents
$51.2M
Previous year: $165M
-69.0%
Free Cash Flow
$134M
Previous year: $153M
-12.2%
Total Assets
$6.93B
Previous year: $6.94B
-0.2%

TEGNA

TEGNA

TEGNA Revenue by Segment

Forward Guidance

TEGNA expects to be disproportionately impacted by cyclical even-to-odd year results due to the absence of record $264 million high margin political revenue reported in the fourth quarter of 2020 and remains on track to meet or exceed full year 2021 financial guidance for all key metrics.

Positive Outlook

  • Subscription Revenue Growth + Mid-to-High Teens percent
  • Corporate Expenses*$44 - 48 million
  • Depreciation$62 - 66 million
  • Amortization$60 - 65 million
  • Net Leverage RatioLow 3x

Challenges Ahead

  • Total Company GAAP Revenue - Mid-to-High Teens percent
  • Total Non-GAAP Operating Expenses+ Low-to-Mid Single Digits percent
  • Non-GAAP Operating Expenses(excluding programming)Flat-to-down
  • Interest Expense$187 - 192 million
  • Capital Expenditures (Non-recurring capital expenditures)$64 - 69 million (including $20 - 22 million non-recurring)

Revenue & Expenses

Visualization of income flow from segment revenue to net income