Tegna Inc (TGNA) Q1 2024 Earnings Call Transcript Highlights: Navigating Challenges with ...

GuruFocus Research

9 May 2024 at 3:22 am·4-min read

Revenue: First quarter total company revenue down 4% year-over-year.
Net Income: Adjusted EBITDA was $174 million.
Free Cash Flow: Adjusted free cash flow of $113 million for the quarter.
Dividends: Quarterly dividend increased by 10% to $0.125 per share.
Share Repurchases: $82 million in share repurchases, retiring approximately 5.7 million shares.
Debt Level: Total debt of $3.1 billion with net leverage ending the quarter at 2.8x.
Subscription Revenue: Down 9% year-over-year, affected by net subscriber declines and service disruptions.
Advertising and Marketing Services Revenue: Down 3% year-over-year; local advertising showing resilience.
Premion Revenue: Returned to positive growth, up low single digits year-over-year.
Political Advertising: Higher political advertising dollars contributing positively.

Warning! GuruFocus has detected 5 Warning Signs with TGNA.

Release Date: May 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Tegna Inc (NYSE:TGNA) successfully achieved key guidance metrics for the first quarter of 2024.
The company made significant progress on its $350 million capital return commitment for 2024, returning more than $100 million to shareholders through share repurchases and dividends.
Tegna Inc (NYSE:TGNA) closed the acquisition of Octillion, enhancing its OTT platform, Premion, with improved technology and market positioning.
Political advertising trends are positive, with Tegna Inc (NYSE:TGNA) well-positioned in key states for upcoming elections, potentially boosting ad revenues.
The company announced new sports broadcasting deals, which could increase viewership and advertising revenue.

Negative Points

National advertising remains challenging, impacting both core operations and the Premion platform.
Subscription revenue was down 9% year-over-year, primarily due to net subscriber declines and a temporary service disruption.
First quarter total company revenue decreased by 4% year-over-year, driven by lower subscription revenue.
Advertising and Marketing Services (AMS) revenue declined by 3% year-over-year, with continued softness in national advertising.
The company faces uncertainty in national advertising trends, which could affect future revenue growth.

Q & A Highlights

Q: Can you provide more details on the second quarter guidance, particularly why revenue expectations might seem low despite overcoming previous disruptions? A: (David T. Lougee - President, CEO & Director) The second quarter doesn't have major retransmission deals up for renewal, which affects the revenue. Also, while political advertising is expected to improve slightly from the first quarter, it won't increase dramatically. (Julie A. Heskett - Senior VP & CFO) National advertising continues to show softness, which is expected to persist into the second quarter, impacting the revenue.

Q: With the transformation and cost savings initiatives, are there significant upfront costs that might affect free cash flow in 2024? A: (David T. Lougee - President, CEO & Director) No significant upfront costs are anticipated with the transformation initiatives, meaning the savings will directly benefit free cash flow as per the guidance.

Q: Could you discuss any potential for bolt-on M&A that could benefit Premion following the acquisition of Octillion? A: (Tom Cox - Senior VP of Digital & Chief Growth Officer) The integration of Octillion with Premion is primarily to enhance technology and sales capabilities. While there are opportunities for further M&A in the streaming landscape, specifics can't be disclosed currently.

Q: Can you elaborate on the benefits of the Octillion acquisition, particularly on the technology side? A: (Tom Cox - Senior VP of Digital & Chief Growth Officer) Octillion provides both offensive and defensive advantages, enhancing product offerings and controlling more inventory pathways, which is expected to accelerate Premion's growth and improve margins.

Q: What are the dynamics of investing in women's sports broadcasting rights, considering potential viewership gains against costs? A: (David T. Lougee - President, CEO & Director) Investing in women's sports like the WNBA's Fever offers potential high viewership at lower costs. While women's sports generally have lower market acceptance, this is expected to change, providing a beneficial arbitrage opportunity.

Q: How do you see the NBA rights potentially moving to NBC impacting TEGNA, given your strong presence in NBC markets? A: (David T. Lougee - President, CEO & Director) The potential shift of NBA broadcasts to NBC is viewed positively, enhancing content on TEGNA's strong NBC stations. This change is expected to benefit viewership and advertising, despite needing to address game placements and time zones.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

GOBankingRates
Cutting Out These 9 Expenses Will Save Retirees Over $29,000 a Year
Most retirees live on a fixed income, so they look for ways to cut down on expenses and save money. This isn't always easy to do, especially if you already feel like you're living with the least...
Australian Associated Press
Rationale behind RBA's last cash rate call on show
The minutes from the last Reserve Bank meeting will outline the thinking behind keeping rates on hold and how seriously the case to hike was considered.
GOBankingRates
7 Things To Know If You Withdraw More Than $10,000 From Your Checking Account
If you've taken the advice to save as much money as in an emergency fund or other form of savings, you should feel entitled to take out money when needed. That's what it's there for, after all. Learn...
Yahoo Finance
Under Armour is collapsing — And Kevin Plank has to take the blame
The Under Armour meltdown continues.
Bloomberg
Copper Hits Record Above $11,000 on Bets That Shortage Looms
(Bloomberg) -- Copper surged to a fresh record, extending a months-long rally that’s been driven by financial investors who have piled into the market in anticipation of supply shortages.Most Read from BloombergIran State TV Says ‘No Sign of Life’ at Helicopter Crash SiteSpeedier Wall Street Trades Are Putting Global Finance On EdgeEven If Alito Is Right, the Upside-Down Flag Was WrongChina’s Housing Rescue Too Small to End Crisis, Analysts SayGantz Says He’ll Quit Unless Netanyahu Moves to New
Washington Post
U.S. and Chinese automakers are headed in completely different directions
American automakers and their Chinese rivals are heading in different directions. Able to produce far more cars than they can sell in China, Chinese companies like BYD are entering markets all over the world. Their global expansion comes as major U.S. carmakers - whose once-lucrative China sales are withering - have withdrawn from promising markets such as India, Indonesia and Thailand to focus on their North American base.Subscribe to The Post Most newsletter for the most important and interest
Insider Monkey
Is Texas the State with the Lowest Tax Burden In the US?
We recently prepared a comprehensive report of 15 States with the Lowest Tax Burden in the US. Click to see the free report. But the interesting question to answer is: Is Texas really the State with the Lowest Tax Burden In the US? Texas State Tax Burden: 7.68% Income Tax: 0% Sales Tax: 6.25% Property […]
Bloomberg
BHP Debates Improved Anglo Bid as Time Runs Out in Takeover Saga
(Bloomberg) -- With time running out on its $43 billion pursuit of Anglo American Plc, BHP Group faces a critical question: what would it take to draw the smaller company to the negotiating table within the next few days? Most Read from BloombergIran State TV Says ‘No Sign of Life’ at Helicopter Crash SiteSpeedier Wall Street Trades Are Putting Global Finance On EdgeEven If Alito Is Right, the Upside-Down Flag Was WrongChina’s Housing Rescue Too Small to End Crisis, Analysts SayGantz Says He’ll
GOBankingRates
8 Ways Middle-Class People Become Poor in Retirement
After working for most of your adult life, the last thing you want to do is stress about your finances and paying hefty bills in your golden years. You want to enjoy your retirement after committing...
Yahoo Finance
The big questions JPMorgan investors have for Jamie Dimon
Attendees at JPMorgan's annual investor day Monday will be listening for answers to some key questions. A top concern is how much longer Jamie Dimon plans to run the largest US bank.
Insider Monkey
Is Florida the State with the Lowest Tax Burden In the US?
We recently prepared a comprehensive report of 15 States with the Lowest Tax Burden in the US. Click to see the free report. But the interesting question to answer is: Is Florida really the State with the Lowest Tax Burden In the US? Florida State Tax Burden: 6.91% Income Tax: 0% Sales Tax: 6% Property […]
Moneywise
Charlie Munger said he 'wouldn't be so rich' if others 'weren't so often wrong' — 5 deadly investing mistakes
How many are you guilty of?
Yahoo Finance AU
Big banks slammed for ‘abandoning’ mortgage customers
More mortgage holders are experiencing hardship as interest rates rise and cost-of-living pressures bite. And banks aren't doing enough to help them.
Moneywise
Fed up with 'higher for longer' interest rates? Take rate cuts into your own hands with these 3 money moves
Consumers still have some control where their money goes.
GOBankingRates
10 Ways the Middle Class Can Save for Retirement and Pay for Rising Costs
Retirement comes with many expenses, including healthcare, long-term care, housing, food, transportation and entertainment -- to name a few. As someone in the middle class, if your goal is to maintain...
Bloomberg
China’s Housing Rescue Too Small to End Crisis, Analysts Say
(Bloomberg) -- China’s latest housing initiative is aimed at vacant properties, a major pain point in a crisis that’s dragged on for almost three years. But analysts say the package of measures is still too small to end the rout.Most Read from BloombergIran State TV Says ‘No Sign of Life’ at Helicopter Crash SiteSpeedier Wall Street Trades Are Putting Global Finance On EdgeEven If Alito Is Right, the Upside-Down Flag Was WrongChina’s Housing Rescue Too Small to End Crisis, Analysts SayGantz Says
Yahoo Finance
Housing experts revise mortgage rate forecasts for remainder of 2024
Experts are revising their forecasts about mortgage rates and home prices for the rest of the year.
Reuters
Morning Bid: China clouds darken market mood
Broadly speaking, the global backdrop for Asian markets is still bright, with investors confident that the Fed will soon cut U.S. interest rates keeping the dollar, bond yields and volatility in check, and boosting risk assets. But there's a cloud that shows no sign of lifting: China. The economic "data dump" from Beijing on Friday showed that China's recovery is sputtering - investment growth slowed, retail sales expanded at the slowest pace since late 2022, and new home prices fell at the fastest rate in nine years.
Insider Monkey
Jim Cramer’s Latest Stock Picks in May 2024
Jim Cramer on Friday analyzed the market rally following the latest CPI data which showed inflation was easing in April. Cramer said bears are clearly fighting an “uphill” battle and unless they could get any clear sign that inflation is heating up, he expects the rally to continue. Cramer Thinks The Market is “Outrageously Bullish” […]
GOBankingRates
9 Moves for Retirement Planning to Make Now If You’re Worried About the Economy
Planning for retirement can be challenging. It's hard to know exactly how much you'll need to set aside and, perhaps more importantly, to save enough in the first place. We have a few factors working...

ALL ORDS

ASX 200

AUD/USD

OIL

GOLD

Bitcoin AUD

CMC Crypto 200

AUD/EUR

AUD/NZD

NZX 50

NASDAQ

FTSE

Dow Jones

DAX

Hang Seng

NIKKEI 225

Positive Points

Negative Points

Q & A Highlights

Latest stories