Tegna Fired Up by Political, Sports, and Premium Content

Tegna, a media company, held its first quarter earnings call on Wednesday morning, discussing various topics such as expanding into local sports rights, the upcoming political year, and the benefits of a recently acquired demand-side advertising platform. Despite a 4% decrease in quarterly revenues to $714.3 million compared to the same period last year, the company remains optimistic about its future prospects.

Julie Heskett, SVP and CFO of Tegna, attributed the revenue decline to lower subscription revenue, offset by higher political advertising dollars. The company experienced a 9% decrease in subscription revenue due to net subscriber declines and temporary service disruptions with a distribution partner in January. However, Tegna has the opportunity to reprice 20% of its subscribers at the end of the year.

On the advertising front, Tegna saw softness in national advertising but strong performance in categories such as auto, services, entertainment, restaurants, banking, and finance. The company’s officials noted that political advertising trends are positive, especially in swing states and hotly contested Senate races where Tegna stations have a significant presence.

Tegna’s recent acquisitions, including partnerships with sports teams like the Seattle Kraken and the WNBA’s Indiana Fever, have also contributed to its positive outlook. The company is closely monitoring developments in the sports rights landscape, including the potential shift of NBA games from Turner Sports to NBC.

Overall, Tegna remains focused on cost reductions and returning value to shareholders, with plans to generate $90-100 million in annualized expense reductions by 2025. The company repurchased $82 million of common stock in the first quarter and increased its quarterly dividend by 10%.

With upcoming events like the Summer Olympics and continued expansion into local sports rights, Tegna is poised for growth and success in the media industry.