NYSE$TGNA

TEGNA Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

TEGNA's second quarter performance reflected the execution of their five-pillar strategy amidst unprecedented market conditions, driven by acquisitions, subscription revenue growth, and political revenue, while managing advertising declines due to COVID-19.

TEGNA Inc. reported an eight percent increase in total company revenue, reaching $578 million. Subscription revenue rose by 37 percent, offsetting a 21 percent decrease in advertising and marketing services revenue due to COVID-19. The company achieved a net income of $20 million on a GAAP basis, and $27 million on a non-GAAP basis.

  • Total company revenue increased by eight percent year-over-year, driven by acquisitions, subscription revenue growth, and political revenue.
  • Subscription revenue increased 37 percent due to rate increases and acquisitions.
  • Advertising and marketing services revenue decreased 21 percent year-over-year due to COVID-19, but improved throughout the quarter.
  • GAAP earnings per diluted share were $0.09, and non-GAAP earnings per diluted share were $0.12.

Headline financials

Total Revenue

$578M

Previous: $537M+7.6%
EPS (adj)

$0.12

Previous: $0.35-65.7%
Adjusted EBITDA

$124M

No prior period
Capital Expenditures

-$24.3M

Previous: -$37.7M+35.5%
Free Cash Flow

$289M

Previous: $79.2M+265.3%
Net Income

$19.9M

Previous: $80M-75.1%
Operating Income

$75.1M

Previous: $143M-47.4%
Gross Profit

$222M

Previous: $252M-11.7%
Cash & Equivalents

$173M

Previous: $29.3M+491.3%
Total Assets

$6.93B

Previous: $5.41B+28.0%
Stock-Based Comp

$8.33M

Previous: $5.01M+66.2%

Revenue & EPS history

TEGNA · Revenue · Quarterly

$578M

Q2 2020+7.6%vs Q2 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

TEGNA · $254M total across 3 segments · Q2 2020

  • Advertising & Mktg Svcs
    $229M-20.9%
  • Political
    $17.5M+443.3%
  • Other
    $7.53M-5.6%

Forward guidance

TEGNA anticipates continued subscription revenue growth and expects full year political advertising revenue to be at least $370 million.

Tailwinds

  • TEGNA remains uniquely positioned for continued subscription revenue growth due to successful negotiations at the end of 2019.
  • TEGNA is expected to benefit from anticipated record political advertising spending this year.
  • TEGNA’s strong portfolio of Big Four affiliates with strong local news remains the preferred medium to reach targeted constituents.
  • TEGNA’s sales and marketing teams have innovated with advertisers to adapt to this dynamic environment.
  • TEGNA will continue to provide purpose-driven, impactful local journalism to viewers and increase engagement with the communities they serve across all of their platforms.

Headwinds

  • TEGNA can't be certain when the broader advertising industry will fully recover from the challenges presented by the COVID-19 pandemic.
  • TEGNA is facing risks relating to the coronavirus (COVID-19) pandemic and its effect on our revenues, particularly our non-political advertising revenues.
  • TEGNA is facing potential regulatory actions.
  • TEGNA is facing changes in consumer behaviors.
  • TEGNA is facing impacts on and modifications to TEGNA’s operations and business relating thereto and TEGNA’s ability to execute on its standalone plan.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.3%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+0.7%

Avg return

30 days after

58%

42 / 72 earnings

Positive

+11.8%

Q2 2009

Best reaction

-20.3%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-0.5%-1.5%
Q3 2025+0.0%-0.2%-1.7%
Q2 2025-8.2%+24.2%+28.2%
Q1 2025+2.6%+6.4%-1.5%
Q4 2024+7.9%+4.0%+8.8%
Q3 2024+5.0%+3.0%+4.7%
Q2 2024-5.2%-7.2%-7.1%
Q1 2024+2.6%+5.9%-3.3%
Q4 2023+0.9%+3.6%+10.4%
Q3 2023-2.3%+1.4%-1.4%
Q2 2023+1.4%+1.2%-7.3%
Q1 2023+0.3%+1.4%+2.5%
Q4 2022-20.3%-22.0%-25.6%
Q3 2022+0.9%-1.6%+3.6%
Q2 2022-0.0%+1.9%+0.4%
Q1 2022-2.4%-3.9%-2.9%
Q4 2021+0.6%-1.3%-1.3%
Q3 2021+5.8%+5.9%+0.8%
Q2 2021+1.2%-1.5%-4.4%
Q1 2021-4.0%-2.1%-4.3%
Q4 2020-3.0%+3.7%+3.3%
Q3 2020+7.1%+8.0%+11.2%
Q2 2020+3.9%+3.4%+4.2%
Q1 2020+0.7%-3.3%+20.7%
Q4 2019-4.6%-2.4%-5.6%
Q3 2019+0.0%-1.3%+3.5%
Q2 2019-5.8%-6.8%+4.2%
Q1 2019+3.9%+2.2%+0.2%
Q4 2018+10.4%+12.0%+7.1%
Q3 2018-0.7%+2.5%+1.3%
Q2 2018-2.1%-3.8%+3.3%
Q1 2018-0.4%+0.8%+0.1%
Q4 2017+4.8%+0.9%-11.4%
Q3 2017+7.1%+4.7%+15.3%
Q2 2017-5.6%-9.8%-14.9%
Q1 2017-9.6%-12.1%-14.0%
Q4 2016+3.3%+4.5%+3.4%
Q3 2016-8.2%-6.7%+12.1%
Q2 2016-9.4%-12.4%-15.8%
Q1 2016-2.0%
Q4 2015+9.4%
Q3 2015-0.5%
Q2 2015-5.6%
Q1 2015+0.9%
Q4 2014+1.4%
Q3 2014+1.1%
Q2 2014-2.0%
Q1 2014+1.8%
Q4 2013+1.0%
Q3 2013-3.5%
Q2 2013+1.0%
Q1 2013-2.9%
Q4 2012+3.9%
Q3 2012+3.0%
Q2 2012-0.8%
Q1 2012+1.4%
Q4 2011+3.0%
Q3 2011+4.9%
Q2 2011-5.8%
Q4 2010+0.3%
Q1 2011+0.1%
Q3 2010+1.6%
Q2 2010+3.2%
Q4 2009-5.9%
Q1 2009-5.9%
Q1 2010+1.2%
Q4 2007+3.6%
Q3 2008+1.3%
Q3 2009+1.3%
Q2 2008+11.8%
Q2 2009+11.8%
Q4 2008+11.8%

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