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Dec 31, 2019
TEGNA Q4 2019 Earnings Report
TEGNA reported solid fourth quarter and full-year results, driving strong guidance for 2020.
Key Takeaways
TEGNA Inc. reported an eight percent increase in total company revenue for the fourth quarter, driven by acquisitions, subscription revenue growth, earlier than anticipated political advertising, and growth in advertising and marketing services revenue. Subscription revenue grew 31 percent year-over-year due to rate increases and acquisitions. The company expects a record year for political advertising in 2020, with revenue exceeding $300 million.
Total company revenue was $694 million, up eight percent year-over-year, exceeding the high end of the preliminary range announced on January 9, 2020.
Subscription revenue of $287 million increased 31 percent year-over-year due to increased subscribers from new stations acquired mid-third quarter, as well as negotiated rate increases.
GAAP earnings per diluted share were $0.38 and non-GAAP earnings per diluted share were $0.47.
Free cash flow was $111 million or 16 percent of fourth quarter revenue.
TEGNA
TEGNA
TEGNA Revenue by Segment
Revenue by Segment
Advertising & Mktg Svcs Revenue
CapyFin.comPolitical Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
TEGNA provided guidance for the first quarter and full year of 2020, anticipating growth in subscription and political revenues. Political advertising revenue is expected to be weighted towards the back half of the year, particularly the fourth quarter.
Positive Outlook
- Total Company GAAP Revenue + low-to-mid thirties
- Non-GAAP Revenue (excluding political) + mid-twenties
- Subscription Revenue + mid-twenties percent
- Political Revenue >$300 million
- Leverage Ratio ~4.0x by year end (4.6x by mid-year)
Challenges Ahead
- Total Non-GAAP Operating Expenses + low-to-mid thirties
- Non-GAAP Operating Expenses (excluding programming) + high twenties
- Corporate Expenses $41 - 43 million
- Depreciation $66 - 69 million
- Interest Expense $220 - 225 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income