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Sep 30, 2023
TEGNA Q3 2023 Earnings Report
TEGNA's Q3 2023 results were reported, showing a mix of revenue performance and strategic capital allocation.
Key Takeaways
TEGNA Inc. reported its third-quarter results, with total company revenue of $713 million, in line with guidance, although down 11% year-over-year. Subscription revenue reached a record $378 million, while AMS revenue was $312 million, down 3% year-over-year. The company's GAAP EPS was $0.48, and non-GAAP EPS was $0.39. TEGNA is increasing its shareholder return of capital commitment to nearly $800 million this year.
Total company revenue finished in-line with guidance at $713 million, but decreased 11% year-over-year.
Subscription revenue reached a third quarter record of $378 million, slightly up year-over-year.
Advertising and Marketing Services (AMS) revenue was $312 million, a 3% decrease year-over-year, but showed sequential improvement from the previous quarter.
The company is increasing its shareholder return of capital commitment to nearly $800 million this year.
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 being disproportionately impacted by the absence of political revenue in Q4 2023, with total company GAAP revenue expected to be down mid-to-high teens percentage compared to Q4 2022. Revenue excluding political is projected to be flat. Full-year 2023 corporate expenses are expected to be $40-45 million, depreciation $60-65 million, amortization $53-54 million, interest expense $170-175 million, capital expenditures $55-60 million and effective tax rate 23.5-24.5%. Net leverage ratio is expected to be below 3x.
Positive Outlook
- Fourth quarter revenue excluding political is projected to be flat despite macroeconomic headwinds in advertising.
- Corporate Expenses are expected to be $40 - 45 million for the full year 2023
- Depreciation is expected to be $60 - 65 million for the full year 2023
- Amortization is expected to be $53 - 54 million for the full year 2023
- Net leverage ratio is expected to be below 3x
Challenges Ahead
- Total company GAAP Revenue is expected to be down Mid-to-High Teens percent
- Total Non-GAAP Operating Expenses are expected to be up Low-Single Digit percent
- Non-GAAP Operating Expenses (excluding programming) are expected to be down Low-Single Digit percent
- Interest Expense is expected to be $170 - 175 million for the full year 2023
- Capital Expenditures are expected to be $55 - 60 million for the full year 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income