TEGNA(TGNA)2024-11-07 20:56Financial Data and Key Metrics Changes - Total company revenue for Q3 2024 increased 13% year-over-year to 356 million [14] - Political advertising revenue year-to-date through election day reached approximately 536 million at the end of Q3 [19] - Net leverage finished the quarter at 2.8x, below the 3x annual guidance [19] Business Line Data and Key Metrics Changes - Core linear advertising was up in Q3, driven by Olympic sales, with a 35% growth in total hours watched for the Paris games compared to the Tokyo games [13] - Advertising and marketing services (AMS) revenue was up slightly year-over-year, with local advertising performance strong across several categories [12][13] - Premion experienced challenges in Q3 but is expected to return to growth in Q4, particularly in local advertising [34] Market Data and Key Metrics Changes - Traditional pay TV homes have been declining 5% to 7% per year, with cable and satellite homes declining in the teens [4] - The company reaches approximately 100 million people monthly across various platforms, indicating strong audience engagement [5] Company Strategy and Development Direction - The company is focusing on five key opportunities: enhancing team culture and accountability, reviewing organizational structures, leveraging technology for efficiency, expanding digital reach, and scrutinizing expenses [7][8] - There is a strong emphasis on local news and the importance of maintaining trusted brands in a competitive environment [5] - The company is committed to returning 40% to 60% of adjusted free cash flow to shareholders over 2024 and 2025 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, highlighting a sense of urgency and energy within the organization [9] - The regulatory environment is seen as a potential area for change, with hopes for a more favorable FCC [24][25] - The company is reaffirming its full-year 2024 guidance metrics and expects Q4 revenue to be up 19% to 21% year-over-year, driven by political advertising [20] Other Important Information - The company is on track to achieve 100 million in core annualized savings by the end of 2025 [18] - A new Chief Legal Officer, Alex Tolston, has joined the company, expected to make a significant impact [10] Q&A Session Summary Question: Opportunities with the FCC and cash flow allocation - Management is hopeful for regulatory changes that could unlock value for shareholders and is focused on making smart capital allocation decisions [24][25] Question: Expense growth and cost reduction - Management confirmed a focus on cost reduction in legacy businesses while preparing for growth in other areas [27] Question: Philosophical differences in management outlook - Management emphasized a renewed focus on execution and product quality, alongside cost management [32] Question: Premion's growth trajectory - Premion faced challenges in Q3 but is expected to return to growth in Q4, particularly in local advertising [34] Question: Local sports rights and profitability - Management is optimistic about local sports rights opportunities and aims to ensure profitability from these investments [49][50] Question: TV advertising trends post-election - Advertising trends are mixed, with some signs of resilience but overall cautious spending from advertisers [42] Question: Political advertising share between broadcast and Premion - Broadcast remains dominant in political advertising, with Premion capturing some national political dollars but not significantly [45]