Tegna 4Q Revenue Down 17%

Tegna this morning released fourth quarter 2021 results that included total revenue of $775 million, down 17% year-over-year and in line with the guidance of down mid-to-high teens percent provided on November 4, 2021.

• Total company revenue was disproportionately impacted by the absence of $238 million incremental political revenue reported in the fourth quarter of 2020, partially offset by growth in AMS revenue and subscription revenue.
• Total company revenue was up 12% from the fourth quarter of 2019, driven by growth in subscription revenue and record AMS revenue in the fourth quarter of 2021.

Subscription revenue of $336 million was up 7% year-over-year due to rate increases, partially offset by subscriber declines as well as the interruption of service with Dish Network, which was resolved on Feb. 4, 2022.

• Subscriber trends through November improved relative to year-end 2020, with the pace of year-over-year change improving by approximately 200 basis points.
• Tegna renewed comprehensive retransmission consent agreements representing approximately 30% of its subscribers since its third quarter earnings release on Nov. 4, 2021.

AMS revenue was a record $400 million, up 14% year-over-year, demonstrating significant broad-based strength across advertising categories.

Net income was $129 million in the fourth quarter on a GAAP basis, or $128 million on a non-GAAP basis.

Total company adjusted EBITDA was $245 million, representing a decrease of 43 percent compared with fourth quarter 2020 due to the absence of record high-margin political revenue reported in the fourth quarter of 2020.

Free cash flow for the third quarter was $189 million, driven by continued growth in subscription and AMS revenues.

The company ended the year with total debt of $3.3 billion and net leverage of 3.24x.

On Feb. 22, Tegna and Standard General announced that Tegna will be acquired by the Standard General affiliate for $24 per share in cash. The closing of the transaction, which is expected to occur in the second half of 2022, is subject to stockholder and regulatory approvals, and other customary closing conditions.

Dave Lougee, Tegna president-CEO, said: “Following a thorough review of acquisition proposals, Tegna ’s standalone prospects, and other strategic alternatives, our board unanimously concluded that Standard General’s offer maximizes value for our shareholders. This transaction is the next step in Tegna ’s evolution and I am confident in the Company’s bright future, building on our exceptional execution, and performance to date.

“I would like to commend the dedication of my Tegna colleagues throughout the year in fulfilling our purpose of serving the greater good. Their commitment to exceptional journalism, diversity, equity, and inclusion and serving our customers helped make a positive impact in our communities.

“Tegna ’s performance achievements in 2021 are a testament to our operational excellence, value of our local station brands and powerful advertising platforms. We generated nearly $950 million of Adjusted EBITDA in full-year 2021, an odd (non-political) year record, and within seven percent of our 2020 record which included $385 million of incremental high-margin 2020 political revenue. Tegna also achieved record total company, subscription, and advertising and marketing services revenues in 2021, and met or exceeded all key full-year financial guidance metrics.”

Read the company’s report here.