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TEGNA Q3 Earnings Beat Estimates, CEO Touts Share Buyback Milestone Despite Revenue Dip

Published 07/11/2023, 17:09
Updated 07/11/2023, 18:10
© Reuters.  TEGNA Q3 Earnings Beat Estimates, CEO Touts Share Buyback Milestone Despite Revenue Dip
TGNA
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Benzinga - by Nabaparna Bhattacharya, Benzinga Editor.

TEGNA Inc. (NYSE: TGNA) reported third-quarter revenue of $713.24 million, beating the street view of $717.94 million.

Revenue slumped 11% Y/Y primarily due to the reduction of political revenue from the mid-term election cycle last year.

The company reported adjusted earnings of $0.39 per share, missing the analyst consensus of $0.40.

Third-quarter subscription revenue was $378 million, up slightly Y/Y, driven by contractual rate increases, partially offset by subscriber declines.

AMS revenue was $312 million in the third quarter, down 3% Y/Y.

Total company adjusted EBITDA was $166 million, down 38% Y/Y due to the absence of high-margin political revenue from mid-term elections and an increase in programming expenses.

"We are pleased with our initial actions to return cash accumulated during the pendency of the merger process by retiring a significant amount of shares," said Dave Lougee, president and CEO.

The company said it completed an initial $300 million accelerated share repurchase, or ASR program, on Aug. 31, 2023, ahead of schedule.

TEGNA approved a second ASR program of $325 million, which was expected to commence this week.

Outlook: The company expects total fourth-quarter GAAP revenue of down mid-to-high teens percent.

In the fourth quarter, 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.

For FY23, the company expects capital expenditures of $55 million-$60 million, in line with the prior view.

TGNA Price Action: TEGNA shares are trading higher by 1.69% to $15.67 on the last check Tuesday.

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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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