TEGNA Inc. (TGNA) Bundle
A Brief History of TEGNA Inc.
Company Overview
TEGNA Inc. is a media company that operates a portfolio of television stations and digital media properties across the United States. As of 2024, TEGNA has been focusing on enhancing its content offerings and expanding its digital footprint.
Financial Performance
In the third quarter of 2024, TEGNA reported a net income attributable to TEGNA Inc. of $147.4 million, or $0.89 per diluted share, compared to $96.2 million, or $0.48 per diluted share during the same period in 2023. On a non-GAAP basis, net income was $156.9 million, or $0.94 per diluted share, up from $78.0 million, or $0.39 per diluted share in 2023.
For the first nine months of 2024, net income was $419.2 million, or $2.44 per diluted share, compared to $400.6 million, or $1.86 per diluted share in the same period of 2023.
TEGNA's total revenues for the third quarter of 2024 reached $806.8 million, a significant increase from $713.2 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenues were $2.23 billion, compared to $2.19 billion in 2023. The growth was primarily driven by a 1050% increase in political revenue during the third quarter, reflecting heightened spending in anticipation of elections.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $147.4 million | $96.2 million | $419.2 million | $400.6 million |
| Earnings Per Share | $0.89 | $0.48 | $2.44 | $1.86 |
| Total Revenues | $806.8 million | $713.2 million | $2.23 billion | $2.19 billion |
Shareholder Returns
TEGNA returned $286.4 million of capital to shareholders in the first nine months of 2024, which included $225.0 million in share repurchases and $61.4 million in dividends. The company has implemented a new share repurchase program authorized in December 2023 for up to $650 million. The quarterly dividend was increased by 10% in May 2024, from $0.11375 to $0.125 per share.
Debt and Liquidity
As of September 30, 2024, TEGNA's total debt stood at $3.08 billion, with cash and cash equivalents of $536.3 million, and unused borrowing capacity of $737.9 million under its revolving credit facility. The leverage ratio was calculated at 2.79x, well below the maximum permitted limit of 4.50x.
Recent Developments
TEGNA has been active in strategic acquisitions, including the purchase of Octillion Media in 2024. The company also recognized a gain of $152.9 million from the sale of Broadcast Music, Inc. (BMI) in early 2024. Overall, TEGNA continues to adapt to the evolving media landscape by focusing on digital growth and enhancing shareholder value.
A Who Owns TEGNA Inc. (TGNA)
Shareholder Structure
Shareholder Structure
As of 2024, TEGNA Inc. (TGNA) has a diverse ownership structure that includes institutional investors, mutual funds, and retail investors. The largest shareholders are primarily investment management firms and pension funds.
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 78% | 129,000,000 |
| Mutual Funds | 15% | 25,000,000 |
| Retail Investors | 7% | 11,000,000 |
Top Institutional Shareholders
The following table highlights the top institutional shareholders of TEGNA Inc. as of early 2024:
| Institution | Shares Owned | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 28,000,000 | 16.9% |
| BlackRock, Inc. | 25,000,000 | 15.4% |
| State Street Corporation | 22,000,000 | 13.5% |
| Invesco Ltd. | 15,000,000 | 9.2% |
| Dimensional Fund Advisors LP | 12,000,000 | 7.4% |
Recent Share Repurchase Activity
TEGNA has been actively repurchasing its shares, reflecting its commitment to returning capital to shareholders. The following details summarize the recent share repurchase program:
| Period | Shares Repurchased | Total Cost ($ million) | Average Price per Share ($) |
|---|---|---|---|
| Q1 2024 | 7,500,000 | 108.0 | 14.40 |
| Q2 2024 | 8,200,000 | 120.0 | 14.63 |
| Q3 2024 | 4,800,000 | 70.1 | 14.51 |
Financial Highlights of TEGNA Inc.
Key financial metrics provide insight into the company's performance and shareholder returns:
| Metric | Value (2024) |
|---|---|
| Net Income ($ million) | 419.2 |
| Earnings Per Share (EPS, $) | 2.44 |
| Dividends Paid ($ million) | 61.4 |
| Total Revenue ($ million) | 2,231.4 |
Shareholder Returns
TEGNA has consistently returned capital to shareholders through dividends and share repurchases:
| Year | Dividends Paid ($ million) | Share Repurchases ($ million) |
|---|---|---|
| 2023 | 63.1 | 300.0 |
| 2024 | 61.4 | 226.0 |
Conclusion on Ownership Trends
TEGNA's ownership structure and shareholder dynamics reflect a strong institutional presence, with significant share repurchase activities indicating a commitment to enhancing shareholder value.
TEGNA Inc. (TGNA) Mission Statement
Overview of TEGNA Inc.
TEGNA Inc. is a media company specializing in broadcasting and digital media. The company operates numerous television stations across the United States and offers various digital services, focusing on delivering high-quality content to its audiences.
Mission Statement
TEGNA's mission is to "inform, engage, and empower communities through the power of media." The company aims to serve its audiences with trustworthy news, innovative storytelling, and engaging content across all platforms.
Financial Performance
As of the third quarter of 2024, TEGNA reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income Attributable to TEGNA Inc. | $147.4 million | $96.2 million | 53% |
| Earnings per Share (Diluted) | $0.89 | $0.48 | 85% |
| Adjusted EBITDA | $269.5 million | $165.9 million | 62% |
| Total Revenues | $806.8 million | $713.2 million | 13.1% |
Revenue Breakdown
The following table summarizes TEGNA's revenue sources for Q3 2024:
| Revenue Source | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change (%) |
|---|---|---|---|
| Subscription Revenue | $356,205 | $377,891 | -6% |
| Advertising & Marketing Services | $312,963 | $312,413 | 0% |
| Political Revenue | $126,318 | $11,643 | |
| Other Revenue | $11,341 | $11,296 | 0% |
| Total Revenue | $806,827 | $713,243 | 13.1% |
Shareholder Returns
TEGNA has demonstrated a commitment to returning capital to shareholders, with the following figures for the nine months ended September 30, 2024:
| Type of Return | Amount ($ millions) |
|---|---|
| Dividends Paid | $61.4 million |
| Share Repurchases | $225.0 million |
| Total Returns to Shareholders | $286.4 million |
Capital Allocation Strategy
TEGNA's capital allocation plan emphasizes a balanced approach to investing in growth while returning capital to shareholders. The company plans to return approximately 40-60% of its adjusted free cash flow to shareholders over the next few years.
Future Outlook
TEGNA continues to focus on enhancing its digital capabilities and exploring strategic acquisitions to drive growth. The company is dedicated to maintaining its mission of empowering communities through impactful media.
How TEGNA Inc. (TGNA) Works
Business Overview
TEGNA Inc. operates as a media company, primarily through its television stations and digital platforms. The company generates revenue from various sources, including subscription fees, advertising and marketing services, and political advertising.
Revenue Breakdown
The following table summarizes TEGNA's revenue categories for the third quarter and the first nine months of 2024 compared to the same periods in 2023:
| Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) | 9M 2024 (in thousands) | 9M 2023 (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Subscription | $356,205 | $377,891 | (6%) | $1,098,554 | $1,188,297 | (8%) |
| Advertising & Marketing Services | $312,963 | $312,413 | 0% | $912,632 | $937,984 | (3%) |
| Political | $126,318 | $11,643 | $185,789 | $22,925 | ||
| Other | $11,341 | $11,296 | 0% | $34,467 | $35,870 | (4%) |
| Total Revenues | $806,827 | $713,243 | 13% | $2,231,442 | $2,185,076 | 2% |
Financial Performance
TEGNA's net income attributable to the company was $147.4 million, or $0.89 per diluted share, for Q3 2024, compared to $96.2 million, or $0.48 per diluted share, in Q3 2023. For the first nine months of 2024, net income was $419.2 million, or $2.44 per diluted share, up from $400.6 million, or $1.86 per diluted share, in the same period of 2023.
Operating Income and Costs
Operating income for TEGNA was $229.9 million in Q3 2024, compared to $134.7 million in Q3 2023. For the first nine months, operating income was $509.3 million, down from $589.8 million in 2023. The decrease in the first nine months was primarily due to the absence of a $136.0 million merger termination fee and a decline in subscription revenue of $89.7 million.
Cost Structure
The overall operating expenses for the first nine months of 2024 were $1.72 billion, compared to $1.60 billion in the same period of 2023. The increase was attributed to higher payroll-related costs and employee retention costs.
Shareholder Returns
TEGNA returned approximately $286.4 million to shareholders in the first nine months of 2024, comprising $225.0 million in share repurchases and $61.4 million in dividends. The company announced a 10% increase in its quarterly dividend to $0.125 per share effective July 1, 2024.
Cash Flow and Liquidity
Operating cash flow was $435.2 million for the first nine months of 2024, compared to $408.8 million for the same period in 2023. The increase was primarily due to a rise in net income driven by political revenue.
Debt and Interest
TEGNA's total debt was approximately $3.01 billion as of September 30, 2024. Interest expense for the first nine months of 2024 was $126.4 million, a slight decrease from $129.1 million in the same period of 2023.
Employee Compensation
TEGNA reported employee stock-based compensation expenses of $30.7 million for the first nine months of 2024, compared to $15.4 million for the same period in 2023.
Recent Acquisitions
In January 2024, TEGNA acquired Octillion Media, enhancing its capabilities in the local connected TV and over-the-top advertising market. The acquisition cost $52.8 million.
How TEGNA Inc. (TGNA) Makes Money
Revenue Sources
TEGNA Inc. generates revenue through four primary sources:
- Subscription Revenues: Fees from cable, satellite, telecommunications, and over-the-top (OTT) providers for carrying TEGNA's television signals.
- Advertising & Marketing Services (AMS): Revenue from local and national non-political television advertising and digital marketing services.
- Political Advertising Revenues: Driven by election cycles, particularly in even-numbered years.
- Other Services: Includes production of programming, tower rentals, and local news content distribution.
Financial Performance Overview
As of the third quarter of 2024, TEGNA reported the following revenues (in thousands):
| Revenue Source | Quarter ended Sept. 30, 2024 | Quarter ended Sept. 30, 2023 | Change (%) |
|---|---|---|---|
| Subscription | $356,205 | $377,891 | (6%) |
| Advertising & Marketing Services | $312,963 | $312,413 | 0% |
| Political | $126,318 | $11,643 | |
| Other | $11,341 | $11,296 | 0% |
| Total Revenues | $806,827 | $713,243 | 13% |
Subscription Revenue Trends
Subscription revenue has seen a decrease of 6% in Q3 2024 compared to Q3 2023, primarily due to declines in subscribers and a temporary service disruption. Year-to-date, subscription revenue decreased by 8%, totaling $1,098,554 in the first nine months of 2024, down from $1,188,297 in the same period of 2023. This decline was partially offset by contractual rate increases under retransmission agreements.
Advertising Revenue Insights
Advertising & Marketing Services (AMS) revenue remained stable at approximately $313 million for Q3 2024, compared to $312 million in Q3 2023. For the first nine months, AMS revenue decreased by 3%, totaling $912,632, reflecting ongoing softness in the national advertising market. The underlying advertising trend improved due to demand from local accounts.
Political Advertising Surge
Political advertising revenue surged significantly in 2024, generating $126,318 in Q3, compared to just $11,643 in Q3 2023. For the first nine months, political revenue totaled $185,789, up from $22,925 in the previous year, driven by increased spending related to the upcoming elections.
Operational Costs
TEGNA's operational costs for Q3 2024 and the first nine months are as follows (in thousands):
| Cost Category | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Revenues | $437,855 | $438,260 | 0% |
| Business Units - SG&A Expenses | $96,882 | $98,394 | (2%) |
| Corporate - G&A Expenses | $13,188 | $13,552 | (3%) |
| Total Operating Expenses | $576,935 | $578,586 | (0%) |
Net Income and Earnings Per Share
TEGNA's net income attributable to the company for Q3 2024 was $147,448, or $0.89 per diluted share, compared to $96,183, or $0.48 per diluted share in Q3 2023. For the first nine months of 2024, net income rose to $419,152, or $2.44 per diluted share, from $400,591, or $1.86 per diluted share in the same period of 2023.
Dividends and Share Repurchase
In 2024, TEGNA paid dividends totaling $61.4 million. The quarterly dividend was increased to $0.125 per share, reflecting a 10% increase from the previous year. TEGNA also engaged in share repurchase programs, repurchasing $225 million of its common stock in the first nine months of 2024.
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Resources:
- TEGNA Inc. (TGNA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TEGNA Inc. (TGNA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TEGNA Inc. (TGNA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.