Tegna 2Q Revenue Climbs 7%

Tegna this morning released second quarter 2022 results that included total revenue of $785 million, up 7% year-over-year largely due to growth in political and subscription revenues, despite a volatile macroeconomic environment.

Subscription revenue was a 2Q record $335 million, up 4% year-over-year due to rate increases and partially offset by subscriber declines.

Advertising and marketing services (AMS) revenue was $335 million, down less than 2% year-over-year due to softness of certain AMS advertising categories, primarily auto, which continues to be impacted by supply chain disruptions..

Political revenue was a second quarter record of $51 million up 53% from 2018, the last nonpresidential election year, on a pro forma basis.

Net income was $132 million in the first quarter on a GAAP basis, or $136 million on a non-GAAP basis.

Total company adjusted EBITDA was a second quarter record of $256 million, representing an increase of 12% compared to the same quarter of 2021.

Free cash flow was a second quarter record of $162 million, primarily driven by election year political cycles.

The company ended the quarter with total debt of $3.1 billion and net leverage of 2.7x.

On Feb. 22, Tegna and Standard General announced that Tegna will be acquired by an affiliate of Standard General for $24 per share in cash. Tegna stockholders voted to approve the transaction at the special meeting of stockholders held on May 17. The closing of the transaction, which is still expected to occur in the second half of 2022, is subject to regulatory approvals and other customary closing conditions.

As a result of the pending transaction and as previously announced, Tegna expects to continue to pay its regular quarterly dividend through the closing of the transaction and suspended share repurchases under its previously announced share repurchase program.

Read the company’s report here.