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TEGNA (TGNA) Q1 Earnings Match Estimates, Revenues Rise Y/Y
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TEGNA’s (TGNA - Free Report) first-quarter 2021 non-GAAP earnings of 52 cents per share came in line with the Zacks Consensus Estimate. The bottom line increased 20.9% on a year-over-year basis.
Revenues increased 6.3% year over year to $727.1 million and beat the consensus mark by 0.01%. This year-over-year growth was driven by continued growth in subscription revenues and record first-quarter advertising and marketing services revenues.
Advertising and Marketing services (44.4% of revenues) revenues increased 9.4% year over year to $322.8 million. Revenues of Premion, TEGNA’s OTT advertising business, were up over 50% year over year.
Subscription (53.2% of revenues) revenues increased 16.2% year over year to $386.7 million due to rate increases, partially offset by subscriber declines.
Political (1.3% of revenues) revenues were $9.4 million, down 80.1% year over year
Other revenues (1.1% of revenues) were $8.1 million, down 9% year over year.
Non-GAAP adjusted EBITDA increased 8.7% year over year to $230.8 million. Adjusted EBITDA margin expanded 70 basis points (bps) to 31.7%. Adjusted EBITDA growth reflects strong operational performance of TEGNA’s stations including ongoing cost efficiency efforts, in addition to continued growth in subscription revenues and strong AMS revenues.
Non-GAAP operating expenses (72.6% of revenues) of $527.9 million were up 4.6% year over year, primarily on account of higher programming expenses in relation to an increase in subscription revenues.
Non-GAAP operating income increased 11.1% year over year to $199.1 million. Operating margin expanded 120 bps to 27.4%.
Balance Sheet & Cash Flow
As of Mar 31, 2021, total cash was $13 million compared with $41 million as of Dec 31, 2020.
Total debt was $3.5 billion and net leverage was 3.82 times as of Mar 31, 2021.
Free cash flow in the first quarter was $158.7 million, up 11.6% year over year.
Guidance
For the second quarter of 2021, TEGNA expects GAAP revenues to be more than mid-to-high twenties percent. Non-GAAP operating expenses are expected to increase in low-double digits percent.
For 2021, TEGNA expects net subscription profits to grow in the mid-to-high teens percentage range.
The company expects free cash flow as a percentage of 2020-2021 revenues of 21%- 22%.
Long-term earnings growth rate for Rogers Communications, Gray Television and WW International is currently pegged at 7.5%, 10%, and 15%, respectively.
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TEGNA (TGNA) Q1 Earnings Match Estimates, Revenues Rise Y/Y
TEGNA’s (TGNA - Free Report) first-quarter 2021 non-GAAP earnings of 52 cents per share came in line with the Zacks Consensus Estimate. The bottom line increased 20.9% on a year-over-year basis.
Revenues increased 6.3% year over year to $727.1 million and beat the consensus mark by 0.01%. This year-over-year growth was driven by continued growth in subscription revenues and record first-quarter advertising and marketing services revenues.
TEGNA Inc. Price, Consensus and EPS Surprise
TEGNA Inc. price-consensus-eps-surprise-chart | TEGNA Inc. Quote
Quarter in Detail
Advertising and Marketing services (44.4% of revenues) revenues increased 9.4% year over year to $322.8 million. Revenues of Premion, TEGNA’s OTT advertising business, were up over 50% year over year.
Subscription (53.2% of revenues) revenues increased 16.2% year over year to $386.7 million due to rate increases, partially offset by subscriber declines.
Political (1.3% of revenues) revenues were $9.4 million, down 80.1% year over year
Other revenues (1.1% of revenues) were $8.1 million, down 9% year over year.
Non-GAAP adjusted EBITDA increased 8.7% year over year to $230.8 million. Adjusted EBITDA margin expanded 70 basis points (bps) to 31.7%. Adjusted EBITDA growth reflects strong operational performance of TEGNA’s stations including ongoing cost efficiency efforts, in addition to continued growth in subscription revenues and strong AMS revenues.
Non-GAAP operating expenses (72.6% of revenues) of $527.9 million were up 4.6% year over year, primarily on account of higher programming expenses in relation to an increase in subscription revenues.
Non-GAAP operating income increased 11.1% year over year to $199.1 million. Operating margin expanded 120 bps to 27.4%.
Balance Sheet & Cash Flow
As of Mar 31, 2021, total cash was $13 million compared with $41 million as of Dec 31, 2020.
Total debt was $3.5 billion and net leverage was 3.82 times as of Mar 31, 2021.
Free cash flow in the first quarter was $158.7 million, up 11.6% year over year.
Guidance
For the second quarter of 2021, TEGNA expects GAAP revenues to be more than mid-to-high twenties percent. Non-GAAP operating expenses are expected to increase in low-double digits percent.
For 2021, TEGNA expects net subscription profits to grow in the mid-to-high teens percentage range.
The company expects free cash flow as a percentage of 2020-2021 revenues of 21%- 22%.
Zacks Rank & Other Stocks to Consider
TEGNA currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader consumer & discretionary sector include Gray Television, Inc. (GTN - Free Report) , Rogers Communication, Inc. (RCI - Free Report) and WW International, Inc. (WW - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Long-term earnings growth rate for Rogers Communications, Gray Television and WW International is currently pegged at 7.5%, 10%, and 15%, respectively.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>