Tegna’s Second Quarter Revenue Up 7.1%

Tegna this morning released second quarter results that included total revenue of $524 million, a 7.1% increase over the same quarter a year ago, driven by subscription revenue growth and higher political revenue. Adjusted revenue, excluding political advertising and previously terminated digital businesses, was up 5% year-over-year.

Political revenue of $26 million set a second quarter historical record.

Net income from continuing operations was $92.5 million.

Subscription revenue was 16% higher year-over-year, a $29 million increase, on track to achieve guidance of mid-teens growth in 2018; subscription revenue now comprises 40% of total revenue, up from 37% in the second quarter of 2017. Total paid subscribers were up year-over-year for the first time in several years fueled by continued growth of OTT subscribers.

Total advertising and marketing services revenue, which excludes political, declined 5% year over year on a GAAP basis, and 3% on an adjusted basis when revenue from discontinued marketing services is excluded.

Second quarter total company operating expenses were $370 million, up 9% from $339.3 million in 2Q 2017.

Operating income was $154 million, up from $147.8 million a year ago.

Dave Lougee, president-CEO, said: “Our progress in the quarter gives us confidence that our growth strategy is on track. Our business mix continues to evolve toward predictable and profitable subscription-based revenue streams.

“Contrary to conventional wisdom, our paid subscriber base is very stable, and in fact, our total number of paid subscribers were up year-over-year for the first time in recent years. The bottom line: any lost traditional subs are being offset by new subscribers from OTT virtual MVPDs.

“As a result of this dynamic as well as annual rate increases, subscription revenues were up double-digits in the quarter. Demand for Premion continues to accelerate as we open new markets and offer new services.

“We are increasing Premion’s full-year revenue guidance from $60 million to $75 million, excluding political advertising on Premion.”

Read the company’s report here.