TEGNA(US:TGNA)2020-08-10 18:27Financial Data and Key Metrics Changes - Total company revenue increased by 8% year-over-year, driven by acquisitions and growth in subscription revenues and political advertising spending [37] - Subscription revenue grew by 37% year-over-year, reflecting growth from both the base business and newly-acquired stations [38] - Advertising and marketing services revenue decreased by 21% compared to last year, primarily due to non-political advertising cancellations related to COVID-19 [40] Business Line Data and Key Metrics Changes - Subscription revenues are expected to grow in the mid-20s percent range for the full year, reflecting the resiliency of these contractual revenues [55] - Political advertising revenue is projected to be at least $370 million for the full year, supported by an expanded competitive footprint in presidential, US Senate, and US House races [55] - Non-political advertising trends have not yet returned to pre-COVID levels, but there has been a sequential improvement since April [18][40] Market Data and Key Metrics Changes - Digital platforms saw significant increases in consumption, with 76 million unduplicated multi-platform visitors in June, the second highest month behind March [13] - The company has a strong presence in key battleground states, which is expected to enhance political advertising revenue [26][27] Company Strategy and Development Direction - The company continues to execute on its five-pillar strategy, focusing on subscription and political revenues to yield durable cash flows [25][31] - TEGNA is taking proactive steps to address systemic racism and improve diversity within its workforce and content [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of advertising revenues as live sports return and political advertising demand increases [15][16] - The company has implemented cost containment measures and achieved significant savings during the pandemic, which will benefit future cash flows [23][45] Other Important Information - The company generated $96 million of free cash flow in the second quarter, representing 17% of total revenue [51] - TEGNA has maintained a strong balance sheet with $173 million in cash on hand and reduced net leverage to 4.76 times [50] Q&A Session Summary Question: Insights on political advertising guidance - Management provided confidence in the political advertising revenue forecast due to increased fundraising and competitive races emerging in key states [64][66] Question: Trends in connected TV and Premion - Management noted that connected TV and OTT services are benefiting from increased viewership, which is advantageous for Premion [63] Question: Non-political advertising market trends - Management highlighted improvements in certain advertising categories, with significant recovery seen from April to June [82] Question: Subscription declines and retransmission negotiations - Management indicated that subscription declines have not significantly impacted retransmission negotiations, maintaining the value proposition of strong Big Four affiliates [136]