• Total Revenue (Q4 2024): $871 million, a 20% increase year-over-year.
• Total Revenue (Full Year 2024): $3.1 billion, a 7% increase year-over-year.
• Adjusted EBITDA (Full Year 2024): $931 million.
• Political Advertising Revenue (Full Year 2024): $373 million.
• Advertising and Marketing Services Revenue (Q4 2024): 11% decrease year-over-year.
• Digital Revenue: Increased year-over-year.
• Subscription Revenue (Q4 2024): $357 million, a 5% increase year-over-year.
• Subscription Revenue (Full Year 2024): $1.5 billion.
• Annualized Savings (End of 2024): $50 million, targeting $90 million to $100 million by end of 2025.
• Q4 2024 Expenses: 2% increase year-over-year.
• Cash and Cash Equivalents (Year-End 2024): $693 million.
• Net Leverage (Year-End 2024): 2.7 times.
• Capital Returned to Shareholders (2024): $356 million.
• Q1 2025 Revenue Guidance: Expected to decrease 4% to 7% year-over-year.
• Q1 2025 Non-GAAP Operating Expenses Guidance: Expected to be flat to slightly up year-over-year.

• Warning! GuruFocus has detected 5 Warning Signs with TGNA.

Release Date: February 27, 2025

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

Positive Points

• Tegna Inc (NYSE:TGNA) reported a 20% year-over-year increase in total company revenue for the fourth quarter, driven by strong political advertising revenue.
• The company achieved approximately $50 million in annualized savings by the end of 2024, contributing to their goal of $90 million to $100 million in core nonprogramming annualized savings by the end of 2025.
• Tegna Inc (NYSE:TGNA) is focusing on growing digital revenue, with digital advertising performance showing year-over-year growth.
• The company successfully completed renewals for approximately 20% of its traditional MVPD subscribers, with subscription revenue increasing by 5% year-over-year in the fourth quarter.
• Tegna Inc (NYSE:TGNA) maintains a strong balance sheet with a net leverage of 2.7 times, providing financial flexibility for future strategic opportunities.

Negative Points

• Advertising and marketing services revenue faced pressure in the fourth quarter, finishing 11% below the previous year due to political displacement and continued softness from national accounts.
• The automotive advertising category continues to be challenged, with Tier 1 and Tier 2 segments showing significant declines.
• Premion, Tegna Inc (NYSE:TGNA)'s CTV advertising platform, experienced softness in national advertising, impacting overall growth.
• First quarter 2025 revenue is expected to decline by 4% to 7% year-over-year, primarily due to lower political revenue.
• Programming expenses, including local sports rights, are expected to drive non-GAAP operating expenses to be flat to slightly up in the first quarter of 2025.

Q & A Highlights

Q: TEGNA was a seller not too long ago. With potential deregulation and M&A opportunities, should we think of TEGNA as more likely being a buyer or a seller in the coming years? A: Mike Steib, President and CEO, stated that TEGNA is focused on disciplined capital allocation to create shareholder value. The company has attractive assets and a strong balance sheet, providing optionality. If deregulation occurs, it could unlock significant synergies for the industry, and TEGNA is well-positioned for any opportunities that arise.

Q: Can you elaborate on the Q1 expense guidance, particularly regarding programming expenses? A: Julie Heskett, CFO, explained that programming expenses, driven by sports rights, are expected to be similar in Q1 as in Q4. However, non-programming expenses are seeing sequential improvement. The programming expenses will not continue throughout the year, and once they are lapped, the increases will not persist.

Q: How is first-quarter core advertising at your TV stations pacing, with and without Premion? A: Julie Heskett noted that AMS started sluggish but improved throughout the quarter, with pacings down low single digits. Adjusting for the Super Bowl programming change, advertising and marketing services are up slightly year-over-year.

Q: Can you provide more detail on Premion and the challenges it faces? A: Julie Heskett stated that Premion remains a strong local tool for CTV advertising, growing double digits locally. However, national challenges arise from large companies shifting to different CTV platforms. Despite this, Premion continues to grow for TEGNA, with local growth offsetting national challenges.

Q: How and when do you plan to address the 2026 bond? A: Julie Heskett mentioned that TEGNA has a strong balance sheet and cash reserves to pay off the 2026 bonds at any time. The company is committed to returning a portion of free cash flow to shareholders and is optimistic about strategic growth opportunities. Decisions will be made based on interest rates and strategic opportunities.

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