On August 7, 2024, Tegna Inc (TGNA, Financial) released its 8-K filing detailing its financial results for the second quarter ended June 30, 2024. Tegna Inc is a media company with a portfolio of broadcast stations and digital sites. The firm has television stations and radio stations in approximately U.S. markets. The company owns multicast networks of True Crime Network, Twist, and Quest. Each television station also has a robust digital presence across online, mobile, connected television, and social platforms, reaching consumers on all devices and platforms used to consume news content. It generates key revenue from advertising and marketing services, subscriptions, political advertising, and other services.
Performance Overview
Tegna Inc (TGNA, Financial) reported a 3% year-over-year decrease in total company revenue to $710 million, which fell short of the analyst estimate of $715.28 million. The decline was primarily driven by lower subscription and advertising and marketing services (AMS) revenues, partially offset by higher political advertising dollars. Subscription revenue decreased by 7% to $367 million due to subscriber declines, while AMS revenue fell by 5% to $301 million due to reduced demand from national accounts.
Financial Achievements and Challenges
Despite the revenue decline, Tegna Inc (TGNA, Financial) managed to achieve key guidance metrics for the quarter and reaffirmed its full-year guidance. The company returned $93 million of capital to shareholders and is on track to return approximately $350 million in 2024. However, GAAP operating expenses surged by 26% to $569 million, primarily due to a $136 million merger termination fee received in the previous year. Non-GAAP operating expenses remained flat, benefiting from initial cost transformation initiatives.
Income Statement Highlights
GAAP and non-GAAP operating income were reported at $142 million and $147 million, respectively. GAAP net income attributable to Tegna Inc was $82 million, while non-GAAP net income was $86 million. GAAP and non-GAAP earnings per diluted share were $0.48 and $0.50, respectively, both missing the analyst estimate of $0.54.
Key Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $710 million | $732 million |
| Subscription Revenue | $367 million | $395 million |
| AMS Revenue | $301 million | $317 million |
| GAAP Net Income | $82 million | $111 million |
| GAAP EPS | $0.48 | $0.65 |
Cash Flow and Capital Allocation
Cash flow from operating activities was $125 million for the quarter and $225 million for the first six months. Adjusted free cash flow was $131 million for the quarter and $230 million for the first six months. The company continues to expect to return 40-60% of adjusted free cash flow generated in 2024-2025 to shareholders through share repurchases and dividends.
Outlook
Tegna Inc (TGNA, Financial) reaffirmed its full-year guidance metrics and provided a positive outlook for the third quarter of 2024, expecting total company GAAP revenue to increase by 9% to 12% compared to the third quarter of 2023. The company also highlighted the early success of the Summer Olympics in Paris and expanded distribution of sports broadcasts as key drivers for the second half of the year.
“Results for the second quarter fell within our guidance range, underscoring TEGNA’s ability to effectively manage what we can control in the current macroeconomic environment,” said Dave Lougee, president and chief executive officer.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Tegna Inc for further details.
