Tegna 1Q Media Segment Rev Finishes Flat

Tegna this morning released first quarter results that included Media Segment revenue of $446.3 million, up 0.6% from $443.8 in the same period a year ago.

Media Segment 4Q revenue broken down by category:

• Core (local and national) was down 9.7% to $224,928.

• Political fell 86.3% to $2.2 million.

• Retrans grew 24.2% to $182.3 million, from $146.8 million in 1Q 2016.

• Online was up 14.1% to $5.2 million.

Media Segment operating expenses were $306.7 million compared to $273.5 million in the first quarter of 2016. The increase, Tegna said, was primarily due to substantially higher programming fees and continued investment in growth initiatives. Media Segment expenses on a non-GAAP basis were up 15.6 percent compared to the first quarter of 2016. Operating income totaled $139.6 million while on a non-GAAP basis, operating income in the quarter was $142.2 million. Adjusted EBITDA in the quarter was $160.1 million.

Digital Segment 1Q revenue declined 1.7% in the first quarter reflecting a modest increase in revenue at Cars.com offset by a $2.4 million revenue decrease at CareerBuilder and the impact of the sale of Cofactor in December 2016.

Total company revenues were $778.5 million, down 0.5% from $781.7 million a year earlier. Total operating expense rose 8% to $625.1 million. Total operating income fell 24.6%, from $203.4 million in 1Q 2016 to $153.4 million.

Gracia Martore, president-CEO, said: “Tegna generated revenue in the first quarter of 2017 comparable to the first quarter last year, despite a significantly lower level of political and Super Bowl spending, a softer advertising environment and one less day in the quarter.

“At Tegna  Media, we benefited from strong growth in retransmission revenue and at Tegna  Digital, Cars.com benefited from an increase in advertising sold directly by the company and the acquisition of DealerRater, partially offset by a decline in fees from advertising sold by newspaper affiliates.”

Read the company’s report here.