TEGNA (TGNA - Free Report) recently renewed its multi-year deal with Disney (DIS - Free Report) owned ABC Entertainment. The deal covers all ABC-affiliated stations that TEGNA owns and operates in nine markets nationwide.
The nine markets serve about 8 million households and cover nearly 7% of U.S. users.
Content Strength, Ad Dollars to Aid Top Line
TEGNA, which is the largest owner of Big 4 affiliates in the top 25 markets, is expected to benefit from its deals with affiliates. The deals will expand its content offerings and boost user engagement levels thereby attracting advertising dollars.
TEGNA also invests in local content such as news, sports, and entertainment to give a differentiated experience to its users and keep them engaged to its stations. Notably, ad dollars from local news stations constitute the major portion of its total advertising revenues, per management.
Additionally, owing to the upcoming U.S. state elections revenue from political ads is expected to drive top-line. Notably, solid political advertising revenues constituted one of the main contributors to the top line in third-quarter 2018.
Political revenues ($238 million in third-quarter 2018) recorded an all-time high, including presidential election years, and came well above the previous mid-term election in 2014.
TEGNA Inc. Revenue (TTM)