Tegna 3Q Revenue Climbs 6%

Tegna this morning released third quarter 2022 results that included total revenue of $803 million, up 6% year-over-year largely due to growth in political revenue, despite advertising and marketing services revenue declines as a result of political displacement, absence of last year’s summer Olympics and “macroeconomic headwinds.”

Subscription revenue was a 3Q record $377 million, up 2% year-over-year due to rate increases and partially offset by subscriber declines.

Advertising and marketing services (AMS) revenue was $321 million, down 12% year-over-year due to the absence of summer Olympics across the company’s large NBC portfolio from third quarter last year, displacement driven by the strong political revenue in the quarter, and macroeconomic headwinds.

Political revenue was $93 million up 28% from 2018, the last nonpresidential election year, on a pro forma basis.

Net income was a third quarter record $146 million on a GAAP basis, or $147 million on a non-GAAP basis.

Total company adjusted EBITDA was a third quarter record of $266 million, representing an increase of 9% compared to the same quarter of 2021.

GAAP operating expenses were $571 million, up 5% year-over-year, and non-GAAP operating expenses were $567 million, up 4% year-over-year, with the increases predominantly driven by investments in Premion’s growth and programming costs.

Free cash flow was $148 million for the quarter.

The company ended the quarter with total debt of $3.1 billion and net leverage of 2.53x.

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.