Record Political Ups Tegna’s 3Q Rev 16%

Tegna this morning released third quarter results that included total revenue of $539 million, a 16% increase over the same quarter a year ago, primarily due to a $30 million increase in subscription revenue and a $57 million increase in political revenue.

Adjusted revenue, excluding political advertising, was up 4% year-over-year, despite being negatively impacted by political displacement.

Political revenue of $60 million was up 51% from the previous mid-terms.

Net income from continuing operations was $92.8 million, up 6.1% from $87.4 million in 3Q 2017.

Subscription revenue was 17% above last year, a $30 million increase. Paid subscribers have increased year-over-year for five consecutive months, fueled by the continued growth of over-the-top subscribers in Tegna  markets.

Total advertising and marketing services revenue, which excludes political, declined 5% year over year due to crowd out from record political inventory.

Third quarter total company operating expenses were $384.7 million, up 10.7%.

Operating income was $154.3 million, up 32% from the year-ago quarter.

Dave Lougee, president-CEO, said: “We continue to execute growth in shareholder value with another quarter of strong results driven by an increase in year-over-year paid subscribers, strong subscription revenue, and record political revenue.”

“Our portfolio is evolving, and we remain focused on growing these stable and profitable revenue streams. As a result, we expect the mix of high margin subscription and political revenues will comprise approximately half of our total two-year revenue beginning in 2019-20, and a larger percentage on a rolling two-year cycle, allowing us to continue to deliver value to our shareholders, regardless of cyclical or economic conditions.

“Demand for Premion also remains strong and it is on track to achieve our increased revenue guidance of $75 million. Finally, our recently announced acquisitions of WTOL and KWES will contribute to our growth and continues our track record of creating value through M&A.”

Read the company’s report here.