Tegna 2Q Broadcast Revenue Up 4.8%

The former broadcasting and digital arm of Gannett Co., spun off as Tegna last month, today released second quarter earnings figures that included Broadcasting Segment revenues of $417.4 million, up 4.8% compared to $398.3 million in the second quarter of 2014, driven primarily by a substantial increase in retransmission revenue and digital revenue, offset in part, by the absence of $14 million in politically related advertising.

Revenue broken down by category:

• Core (local and national) was up 3% to $268.8 million
• Political was down 83% to $2.7 million
• Retrans increased 23% to $109.4 million
• Digital grew 23% to $28.7 million

Broadcasting Segment operating expenses on a non-GAAP basis were $238.2 million, an increase of 7.5% compared to the second quarter of 2014 due, in part, to higher reverse network compensation.

Digital Segment operating revenues grew substantially in the quarter to $338.1 million, an increase of 74% compared to the second quarter of 2014. The growth was driven by the acquisition of and strong organic growth at Cars.com.

On a pro forma basis, Digital Segment revenues increased 5.8% percent reflecting primarily mid-20s percentage revenue growth at Cars.com offset in part by a low-single percentage decline in revenue at CareerBuilder.

Gracia Martore, president-CEO, said: “We are thrilled to have capped off such a strong quarter with the very successful completion of our separation into two more sharply focused public companies. This milestone is the result of three-and-a-half years of unflagging dedication and diligence on the part of employees across all of our businesses, and it marks the beginning of an exciting new chapter for Tegna.”

Read the company’s report here.