TEGNA(US:TGNA)2020-11-09 19:15Financial Data and Key Metrics Changes - Total company revenue for Q3 2020 was $738 million, a 34% increase year-over-year, driven by record political advertising revenue of $116 million and a 14% increase in total revenue excluding political advertising [13][28] - Subscription revenue increased by 32% year-over-year to $317 million, reflecting the repricing of 50% of subscribers [15][29] - Adjusted EBITDA for the quarter was $259 million, representing a 65% year-over-year increase and a 35% margin [34] Business Line Data and Key Metrics Changes - Political advertising revenue reached a record $116 million, significantly contributing to the overall revenue growth [13] - Subscription revenue growth was attributed to both base business growth and synergies from recent acquisitions, with expectations for continued growth into next year [15][30] - Advertising and marketing services revenue was nearly $300 million, showing slight year-over-year growth, driven by a recovery in non-political advertising and the return of live sports [19][31] Market Data and Key Metrics Changes - The company capitalized on political spending in battleground states leading up to the elections, with $395 million booked year-to-date, significantly above prior records [14] - The advertising market showed improvement, particularly in categories like automotive and retail, while entertainment, travel, and tourism continued to struggle [32][64] Company Strategy and Development Direction - The company is focused on a five-pillar strategy and has executed a disciplined M&A strategy to strengthen its portfolio [13][25] - TEGNA is expanding its reach through over-the-top streaming services and has launched apps on platforms like Roku and Amazon Fire TV [10] - The company is committed to diversity and inclusion, having appointed a Chief Diversity Officer and signed the CEO Action for Diversity and Inclusion pledge [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the advertising market post-election and the potential for increased core demand [63] - The company anticipates continued improvement in subscription revenue growth, now expected to be in the high 20s percentage for the full year [40] - Management highlighted the resilience of the business model and the importance of strategic positioning during the pandemic [23][86] Other Important Information - The company reduced total expenses by $28 million from the original plan, contributing to the strong adjusted EBITDA results [21] - TEGNA has successfully managed its debt, reducing net debt by approximately $400 million year-to-date [22][36] Q&A Session Summary Question: What is the outlook for M&A in 2021 post-election? - Management indicated they have the balance sheet to be opportunistic in M&A but are currently prioritizing debt payback [47] Question: Can you provide details on connected TV revenue growth? - Management noted that while specific numbers are not available, they expect yields to improve as they expand their OTT applications [46] Question: What is the same station revenue growth for subscription and AMS? - Same station AMS was down in the high single digits, but there was a sequential improvement [54] Question: How is the advertising market performing post-election? - Management reported that advertising pacings are looking good, with improvements expected in December [64][79] Question: What percentage of political revenue was from Georgia? - Management did not provide specific numbers but acknowledged that Georgia's spending will be significant due to the upcoming senatorial runoffs [67] Question: How is the NFL impacting your affiliates? - Management expressed confidence that the majority of NFL content will remain on broadcast, which is beneficial for their ABC affiliates [65]