TEGNA Announces Record Final First Quarter Results, Second Quarter Guidance

Rhea-AI Summary

TEGNA Inc. (NYSE: TGNA) reported strong financial results for Q1 2021, with total revenue of $727 million, a 6% year-over-year increase. Subscription revenue reached a record $387 million, up 16%, while advertising and marketing services (AMS) revenues hit $323 million, a 9.4% rise. Net income rose 30% to $113 million, and Adjusted EBITDA was $231 million, a 9% increase. Free cash flow reached a record $159 million, representing 22% of revenue. Total debt stood at $3.5 billion, with a net leverage of 3.82x. TEGNA expects continued growth, including a projected increase in AMS revenues and subscription profits.

Positive

• Total revenue increased by 6% year-over-year to $727 million.
• Subscription revenue hit a record $387 million, up 16% year-over-year.
• AMS revenues grew by 9.4% to $323 million.
• Net income increased by 30% to $113 million.
• Adjusted EBITDA reached a record $231 million, up 9%.
• Free cash flow set a record at $159 million, 22% of revenue.

Negative

• Total debt remains high at $3.5 billion, with net leverage at 3.82x.

TEGNA Inc. (NYSE: TGNA) today announced financial results for the first quarter ended March 31, 2021.

FIRST QUARTER HIGHLIGHTS:

• Total company revenue was $727 million, up six percent year-over-year, driven by continued growth in subscription revenue and record first quarter advertising and marketing services (“AMS”) revenues. Revenue was up 41 percent from the first quarter of 2019 driven by the same factors, as well as the impact of acquisitions.¹
• Subscription revenue was a first quarter record of $387 million, up 16 percent year-over-year driven by rate increases.
  • Subscriber trends continue to improve, down below five percent year-over-year according to first quarter data; these are the strongest trends we have seen since December 2019.
  • Full-year subscription revenues are on track to grow mid-to-high teens percent.
  • Net subscription profits are still expected to grow in the mid-to-high twenties percent in 2021.²
• Record first quarter AMS revenues of $323 million were up 9.4 percent year-over-year.
  • Revenues of Premion, TEGNA’s over-the-top advertising business, were up more than 50 percent year-over-year in the first quarter.
  • TEGNA now expects full-year Premion revenues to be up 45 to 50 percent relative to 2020.
• Net income was $113 million, up 30 percent from the first quarter of 2020, and non-GAAP net income was $115 million.
• Total company Adjusted EBITDA was a first quarter record of $231 million, an increase of nine percent despite the impact of record political advertising revenues in the first quarter of 2020.
  • Adjusted EBITDA growth reflects strong operational performance of TEGNA’s stations including ongoing cost efficiency efforts, in addition to continued growth in subscription revenue and strong AMS revenues.
  • First quarter Adjusted EBITDA was up 51 percent compared with the first quarter of 2019.

1 Throughout earnings release, “acquisitions” includes (1) the Nexstar/Tribune acquisitions, (2) the Dispatch acquisitions and (3) the acquisitions of multicast networks Justice Network and Quest.
2 Computed as subscription revenue less reverse compensation expense paid to our affiliate partners.

• GAAP earnings per diluted share were $0.51 and non-GAAP earnings per diluted share were $0.52.
• Free cash flow was a first quarter record of $159 million or 22 percent of first quarter revenue, driven by recent business performance including continued growth in subscription revenue and strong AMS revenues, as well as the ongoing benefit of significant cost initiatives that have been under way for more than 24 months.
  • The Company is on track to achieve recently updated full-year guidance for free cash flow as a percentage of 2020-2021 revenue of 21.0 - 22.0 percent.
• Total debt at the end of the quarter was $3.5 billion and net leverage was 3.82x.
  • TEGNA is on track to achieve recently updated full-year net leverage guidance of low 3x by year-end.

CEO COMMENT

“Our final first quarter results, including projected second quarter and full-year 2021 guidance, reflect our favorable positioning for continued growth. Our record first quarter total revenue and advertising and marketing services (“AMS”) and subscription revenues, net income, and Adjusted EBITDA are indicative of TEGNA’s sustained positive momentum,” said Dave Lougee, president and chief executive officer.

“AMS revenues have continued their

FAQ

What were TEGNA's total revenues for Q1 2021?

TEGNA's total revenues for Q1 2021 were $727 million.

How much did TEGNA's subscription revenue grow in Q1 2021?

TEGNA's subscription revenue grew by 16% year-over-year to reach $387 million.

What is the record AMS revenue reported by TEGNA for Q1 2021?

TEGNA reported record AMS revenue of $323 million for Q1 2021.

What was TEGNA's net income for Q1 2021?

TEGNA's net income for Q1 2021 was $113 million, an increase of 30%.

What is TEGNA's adjusted EBITDA for Q1 2021?

TEGNA's adjusted EBITDA for Q1 2021 was $231 million.

What is TEGNA's free cash flow for Q1 2021?

TEGNA reported a free cash flow of $159 million for Q1 2021.

What is TEGNA's total debt and net leverage at the end of Q1 2021?

TEGNA's total debt was $3.5 billion, with a net leverage of 3.82x.