Shares of TEGNA Inc. (TGNA - Free Report) declined marginally following the announcement of its third-quarter results. On a year-to-date basis, the stock lost 11.6% against the industry’s gain of 18.3%.
TEGNA reported non-GAAP earnings of 40 cents per share, which beat the Zacks Consensus Estimate by 3 cents. The figure surged 73.9% on a year-over-year basis and 11.1% sequentially.
On a GAAP basis, revenues increased 16.1% year over year to $538.9 million, which came ahead of the Zacks Consensus Estimate of $537 million. Top-line growth was primarily driven by increase in subscription and political revenues.
TEGNA’s adjusted revenues, which exclude political advertising, were up 4% year over year to $478.6 million.
Top Line in Detail
Advertising and Marketing Services (49.1% of total revenues): The category generated $264.9 million, down 4.7% on a year-over-year basis. The year-over-year decline was primarily due to significant demand for political advertising.
Subscription (38.5%): This category generated $207.5 million in the reported quarter, up 16.8% from the year-ago quarter. This was driven by growth in contract rate hike and higher paid subscribers of both multichannel video programming distributor (MVPD) and new virtual MVPD services. Moreover, subscribers and revenues from OTT streaming services increased in the third quarter.
Political (11.2%): This category generated $6.4 million, which surged 1496.9% from the year-ago period. The year-over-year growth was primarily driven by solid political advertising revenues of $57 million. Notably, in the reported quarter, Premion contributed to less than $10 million to political advertising.
Year to date, political revenues totaled $238 million, touching an all-time high, including presidential election years. The figure is up 50% from the previous mid-term election in 2014.
Other (1.2%): TEGNA generated $6.3 million of revenues from this category, up 25.7% year over year.
TEGNA Inc. Price, Consensus and EPS Surprise