Tegna Inc (TGNA) Reports Q3 2023 Earnings, Revenue Down 11% YoY
Tegna Inc (NYSE:TGNA) reports Q3 2023 total revenue of $713 million, down 11% year-over-year.
Subscription revenue reached a Q3 record of $378 million, up slightly YoY.
GAAP and non-GAAP operating income totaled $135 million and $138 million, respectively.
Net income of $96 million on a GAAP basis, or $78 million on a non-GAAP basis.
On November 7, 2023, Tegna Inc (NYSE:TGNA) announced its financial results for the third quarter ended September 30, 2023. Despite facing challenges such as the absence of Summer Olympics and macroeconomic headwinds in Advertising and Marketing Services (AMS) revenue, the company managed to achieve a record third quarter subscription revenue.
Financial Performance
The total company revenue for Q3 2023 was $713 million, down 11% year-over-year, primarily due to the reduction of political revenue from the mid-term election cycle last year. The company's subscription revenue was a third quarter record of $378 million, up slightly year-over-year, driven by contractual rate increases, partially offset by subscriber declines. AMS revenue was $312 million in the third quarter, down three percent year-over-year. The GAAP and non-GAAP operating income totaled $135 million and $138 million, respectively.
Capital Allocation and Share Repurchase
Tegna Inc (NYSE:TGNA) completed its initial $300 million ASR program on August 31, 2023, ahead of schedule. The company also opportunistically repurchased an incremental $28 million of shares taking advantage of attractive market pricing. The repurchases were made under TEGNAs existing share repurchase program approved by the Board of Directors in December of 2020.
CEO Commentary
TEGNA is operating from a position of strength within the broadcast industry, and we are seeing positive momentum across our organization, said Dave Lougee, president and chief executive officer. Our management team and Board are laser focused on generating shareholder value and building a track record of disciplined capital allocation as TEGNA advances its strategy as a standalone company."
Q4 and Full-Year 2023 Outlook
For the fourth quarter of 2023, TEGNA expects to be disproportionately impacted by cyclical odd-to-even year results due to the absence of $179 million of high-margin political revenue reported in the fourth quarter of 2022. Fourth quarter revenue excluding political is projected to be flat despite macroeconomic headwinds in advertising.
Key Strategic Updates
Tegna Inc (NYSE:TGNA) announced several strategic updates, including a multi-year agreement renewal with ABC, the launch of four FAST channels for Locked On Sports, and the continued growth of VERIFY, TEGNAs national brand that combats disinformation. The company also reported that its station streaming apps generated 677 million minutes on streaming, a 78 percent increase year-over-year.
Explore the complete 8-K earnings release (here) from Tegna Inc for further details.
This article first appeared on GuruFocus.
