Group 1 - TEGNA Inc. shareholders approved all Board of Directors' proposals at the 2025 annual meeting [1] - Board chair Howard D. Elias, CEO Mike Steib, and several independent directors were re-elected [1] - Karen H. Grimes retired from the Board after five years of service [2] Group 2 - Shareholders approved the compensation of named executive officers on an advisory basis [3] - PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the 2025 fiscal year [3] Group 3 - TEGNA operates 64 television stations in 51 U.S. markets, reaching over 100 million people monthly [4]

Core Viewpoint - TEGNA Inc. (NYSE: TGNA) shares have increased by 14% over the past year, primarily driven by expectations of relaxed station ownership rules following the 2024 election, which may lead to potential mergers and acquisitions [1] Company Performance - TEGNA's stock performance has been solid, with a notable gain of 14% in the last year [1] - The increase in stock value is largely attributed to market optimism regarding changes in ownership regulations that could facilitate M&A activity [1]

Core Insights - Gabelli Funds will host its 17th Annual Media & Entertainment Symposium on June 5, 2025, at the Harvard Club in New York City, focusing on industry dynamics, current trends, and business fundamentals [1] - The symposium will include discussions on Sports Investing, Media & Telecom Regulatory issues, and Advertising Panels, providing a platform for attendees to engage with leading companies in the media ecosystem [1][3] - A webcast option will be available for those unable to attend in person, ensuring broader access to the discussions and insights shared during the event [1] Presenting Companies - Notable companies participating in one-on-one meetings include Atlanta Braves Holdings, AMC Networks, Lionsgate Studios, Churchill Downs, Nexstar Media Group, Genius Sports, Reservoir Media, Gray Television, Rogers Communications, Live Nation Entertainment, Sinclair Inc., Sportradar Group, TEGNA Inc., TKO Group, and The E.W. Scripps Company [2] Panel Discussions - The symposium will feature several panel discussions, including "Sports Investing: Ways to Play," a TV Bureau of Advertising (TVB) Panel, and a Media & Telecom Regulatory Expert Session led by former FCC Commissioner Rob McDowell [3]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 financials show decreased revenue and a sharp drop in net income year-over-year Condensed Consolidated Balance Sheet Summary (In thousands) | Account | Mar. 31, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,366,906 | $1,360,412 | | **Total assets** | $7,301,757 | $7,326,519 | | **Total current liabilities** | $973,518 | $466,280 | | **Total liabilities** | $4,242,179 | $4,301,488 | | **Total equity** | $3,038,870 | $3,004,714 | Consolidated Statement of Income Summary (In thousands, except per share) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenues** | $680,049 | $714,252 | | **Operating income** | $109,023 | $137,560 | | **Net income attributable to TEGNA Inc.** | $58,671 | $189,560 | | **Diluted EPS** | $0.36 | $1.06 | Condensed Consolidated Statement of Cash Flows Summary (In thousands) | Activity | Three months ended Mar. 31, 2025 | Three months ended Mar. 31, 2024 | | :--- | :--- | :--- | | **Net cash flow from operating activities** | $59,629 | $100,380 | | **Net cash flow (used for) provided by investing activities** | $(6,368) | $86,224 | | **Net cash flow used for financing activities** | $(29,828) | $(116,876) | | **Increase in cash and cash equivalents** | $23,433 | $69,728 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the single operating segment, revenue nomenclature change, debt compliance, and ongoing litigation - TEGNA operates as a **single reportable segment**, consisting of 64 television stations and two radio stations[21](index=21&type=chunk) - Beginning in Q1 2025, 'Subscription' revenue was renamed **'Distribution' revenue** to better reflect content distribution fees[32](index=32&type=chunk)[62](index=62&type=chunk) - As of March 31, 2025, total debt principal was **$3.09 billion**, and the company was in compliance with all debt covenants[39](index=39&type=chunk) - The company is a defendant in antitrust lawsuits regarding local TV advertising sales, which it intends to **defend vigorously**[50](index=50&type=chunk)[52](index=52&type=chunk)[54](index=54&type=chunk) - The Accelerated Share Repurchase (ASR) program was completed on February 22, 2024, with a final delivery of **4.0 million shares**[47](index=47&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2025 revenue and income declined due to lower political advertising and the absence of a prior-year investment gain [Consolidated Results from Operations](index=16&type=section&id=Consolidated%20Results%20from%20Operations) Q1 2025 revenue fell 5% and net income dropped 69% year-over-year, driven by a large prior-year investment gain Q1 2025 vs Q1 2024 Performance (In thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $680,049 | $714,252 | (5%) | | **Operating Income** | $109,023 | $137,560 | (21%) | | **Net Income Attributable to TEGNA Inc.** | $58,671 | $189,560 | (69%) | | **Diluted EPS** | $0.36 | $1.06 | (66%) | - The significant increase in non-operating expense was primarily due to the absence in 2025 of a **$152.9 million gain** from the sale of an investment in Broadcast Music, Inc. (BMI) that occurred in Q1 2024[72](index=72&type=chunk) [Revenues Analysis](index=17&type=section&id=Revenues%20Analysis) Revenue decline was driven by cyclical drops in Political and Advertising & Marketing Services revenue Revenue by Category (In thousands) | Category | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Distribution** | $379,556 | $380,503 | (0%) | | **Advertising & Marketing Services** | $286,397 | $296,109 | (3%) | | **Political** | $3,616 | $27,828 | (87%) | | **Other** | $10,480 | $9,812 | 7% | | **Total revenues** | $680,049 | $714,252 | (5%) | - Excluding the impact of a prior-year service disruption, distribution revenue would have been down **$14.0 million, or 3.6%**, in Q1 2025 compared to Q1 2024[63](index=63&type=chunk) [Non-GAAP Information](index=19&type=section&id=Non-GAAP%20Information) Q1 2025 Adjusted EBITDA decreased 22% to $136.2 million, with an Adjusted EBITDA margin of 20% Adjusted EBITDA Reconciliation (In thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Net income attributable to TEGNA Inc. (GAAP)** | $58,671 | $189,560 | (69%) | | **Adjustments (Taxes, Interest, D&A, etc.)** | $77,577 | $(15,373) | *** | | **Adjusted EBITDA (Non-GAAP)** | $136,248 | $174,187 | (22%) | - Non-GAAP net income attributable to TEGNA Inc. was **$60.9 million ($0.37 per diluted share)** in Q1 2025, compared to $80.1 million ($0.45 per diluted share) in Q1 2024[74](index=74&type=chunk)[81](index=81&type=chunk) [Liquidity, Capital Resources and Cash Flows](index=21&type=section&id=Liquidity%2C%20Capital%20Resources%20and%20Cash%20Flows) The company maintains strong liquidity with a 2.89x leverage ratio and plans to redeem $250 million in debt - The company's leverage ratio was **2.89x** as of March 31, 2025, below the maximum permitted ratio of 4.50x[90](index=90&type=chunk) - TEGNA expects to redeem at least **$250 million** of its debt maturing in March 2026 during Q4 2025[90](index=90&type=chunk) - As of March 31, 2025, **$375.2 million remained available** for repurchase under the share repurchase program expiring December 31, 2025[86](index=86&type=chunk)[105](index=105&type=chunk) - Cash flow from operating activities decreased by **$40.8 million** YoY, primarily due to a $44.8 million payment for clean energy tax credits[92](index=92&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Market risk exposure has not materially changed, with no current floating-rate debt obligations - There have been **no material changes** in market risk exposures since December 31, 2024[98](index=98&type=chunk) - The company had no floating interest obligations outstanding, but future borrowings are subject to **variable rates**[99](index=99&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective with no material changes to internal controls - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were **effective** as of March 31, 2025[100](index=100&type=chunk) - **No material changes** in internal controls over financial reporting occurred during the first quarter of 2025[101](index=101&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=24&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending against antitrust lawsuits related to local TV advertising, which it deems without merit - Information regarding legal proceedings is detailed in **Note 10** to the condensed consolidated financial statements[102](index=102&type=chunk) - The company is a defendant in ongoing antitrust litigation but does **not believe any material liability** will be imposed[49](index=49&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor regarding the impact of government tariffs on advertising demand has been identified - A new risk factor has been identified: The imposition of **U.S. government tariffs** and retaliatory actions may negatively impact advertising demand[104](index=104&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased in Q1 2025, with $375.2 million remaining under the current buyback authorization - **No shares were repurchased** during the three months ended March 31, 2025[105](index=105&type=chunk) - As of March 31, 2025, **$375.2 million** of common shares may still be repurchased under the program that expires on December 31, 2025[105](index=105&type=chunk) [Exhibits](index=25&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and agreements

Financial Data and Key Metrics Changes - Total company revenue for Q1 was $680 million, a decrease of 5% year over year, aligning with the outlook of down 4% to 7% [16][17] - Adjusted EBITDA for Q1 was $136 million, a 22% decrease year over year, primarily due to lower political advertising revenue and AMS revenue [20] - Cash and cash equivalents totaled $717 million at quarter end, with net leverage finishing at 2.8 times [22] Business Line Data and Key Metrics Changes - Advertising and marketing services (AMS) revenue was $286 million, a 3% decrease year over year, impacted by macroeconomic headwinds and the Super Bowl airing on Fox [17] - Distribution revenue was flat year over year at $380 million, affected by a temporary disruption of service and subscriber declines [19] - Digital advertising revenue showed year-over-year growth, continuing momentum from the previous quarter [18] Market Data and Key Metrics Changes - Advertising demand remains closely tied to overall economic sentiment, with consumer confidence softening, leading to a cautious approach from some advertisers [17] - Approximately 45% of traditional subscribers are up for renewal in 2025, providing opportunities for value capture [19] Company Strategy and Development Direction - The company is focused on five areas: building a strong team culture, leveraging strengths across stations, deploying technology and AI, growing digital revenue, and cutting unnecessary spending [6][7] - Recent sports rights deals have been secured across various leagues, enhancing local broadcasting capabilities [13] - The company is taking a measured approach to share repurchases, preserving financial flexibility amid potential deregulation and M&A opportunities [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the advertising environment is expected to be softer in Q2 compared to Q1, influenced by macroeconomic factors [31] - There is optimism regarding the potential for M&A opportunities due to favorable regulatory conditions [29][40] - The company remains committed to returning 40% to 60% of adjusted free cash flow to shareholders over the 2024-2025 period [21] Other Important Information - The company is on track to achieve annualized core non-programming savings of $90 million to $100 million by the end of 2025 [21] - A reclassification of subscription revenue to distribution revenue was made, with immaterial amounts highlighted for simplification [19] Q&A Session Summary Question: Future deregulation initiatives and M&A opportunities - Management believes that the FCC's support for local broadcasters will unlock M&A opportunities, but specifics depend on the full landscape and pricing [29][30] Question: Anticipated headwinds in the advertising environment - Management indicated that Q2 is expected to be softer than Q1, with lower consumer confidence impacting advertising strategies [31][32] Question: Appetite for M&A and synergy opportunities - Management expressed excitement about M&A opportunities, emphasizing the potential for significant cost savings through consolidation [39][64] Question: Trends in Premion's performance - Premion's revenues remain flattish quarter to quarter, with local advertising continuing to grow while national declines offset this growth [42] Question: Alternative uses of spectrum and revenue generation - Management sees potential in ATSC 3.0 technology for future revenue streams, though significant revenue generation is not expected immediately [48][49] Question: Market concentration and regulatory views - Management highlighted that big tech dominates viewer consumption, suggesting that regulators should consider the competitive landscape when evaluating local news market concentration [59][60]

Tegna (TGNA) Q1 2025 Earnings Call May 08, 2025 11:00 AM ET Speaker0 Good day, and thank you for standing by. Welcome to the Q1 twenty twenty five TEGNA, Inc. Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please pre ...

Core Insights - TEGNA Inc. reported revenue of $680.05 million for Q1 2025, a year-over-year decline of 4.8%, with EPS of $0.37 compared to $0.45 a year ago, indicating a decrease in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $677.17 million by 0.43%, while the EPS surprised positively by 8.82% against the consensus estimate of $0.34 [1] Revenue Breakdown - Political revenues were reported at $3.62 million, significantly below the two-analyst average estimate of $5.30 million, reflecting a year-over-year decline of 87% [4] - Advertising & Marketing Services revenues amounted to $286.40 million, slightly below the average estimate of $291.96 million, with a year-over-year change of -4.1% [4] - Other revenues were reported at $10.48 million, also below the average estimate of $12.45 million, showing a year-over-year decline of 15.5% [4] Stock Performance - TEGNA's shares have returned -1.3% over the past month, contrasting with the Zacks S&P 500 composite's increase of +11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

TEGNA Inc. (TGNA) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.82%. A quarter ago, it was expected that this company would post earnings of $1.15 per share when it actually produced earnings of $1.21, delivering a surprise of 5.22%.Over the last four quarters, the company has sur ...

FOR IMMEDIATE RELEASE Thursday, May 8, 2025 See Table 3 for details 1 1 • Total company revenue decreased 5% to $680 million in line with our guidance. The primary drivers of the decline were lower political advertising revenue consistent with cyclical even-to-odd year comparison and lower advertising and marketing services (AMS) revenue due to our Super Bowl footprint this year versus last year. • Distribution revenue of $380 million was flat primarily due to a favorable comparison with the prior year peri ...

Core Insights - TEGNA Inc. reported a 5% year-over-year decrease in total revenue, amounting to $680 million, primarily due to lower political advertising revenue and a shift in Super Bowl advertising [4][17] - The company reaffirmed its two-year Adjusted Free Cash Flow guidance for 2024/2025, estimating between $900 million and $1.1 billion [7][25] - TEGNA's net income attributable to the company was $59 million, reflecting a 69% decline compared to the previous year [4][18] Financial Performance - Total company revenue decreased by 5% to $680 million, with distribution revenue remaining flat at $380 million and AMS revenue down 3% to $286 million [4][17] - GAAP operating expenses decreased by 1% to $571 million, while non-GAAP operating expenses remained flat [4][17] - Adjusted EBITDA fell by 22% to $136 million, primarily due to lower political advertising and AMS revenue [4][17] Operational Updates - TEGNA appointed Melissa Zimyeski as vice president of product and Mat Yurow as vice president of growth to enhance digital product management and revenue growth [5] - The company secured local team rights across major sports leagues, including the NBA, WNBA, NHL, and MLB, and expanded partnerships with NFL teams [5] Guidance and Outlook - For the full year 2025, TEGNA expects GAAP revenue to decline by 4% to 7% and non-GAAP operating expenses to remain flat to down 2% [8] - Corporate expenses are projected to be between $40 million and $45 million, with capital expenditures estimated at $50 million to $60 million [7]