TEGNA's Q3 2024 Earnings: Political Ads Drive Growth

TEGNA Inc. (TGNA) reported its third-quarter 2024 earnings, highlighting strong political advertising revenue and a positive outlook for the full year. The company's robust performance, driven by political ads and strategic initiatives, positions it well for continued growth. This article delves into TEGNA's Q3 2024 earnings, its political advertising growth, and its strategic moves, including sports rights expansion.



**Political Advertising Revenue Surges**

TEGNA's political advertising revenue soared to a record $126 million in Q3 2024, a 37% increase year-over-year. This surge, coupled with positive growth in advertising and marketing services (AMS) revenue, led to a 13% increase in total company revenue to $807 million, exceeding the guidance range. The company's full-year political advertising revenue through Election Day is expected to reach approximately $375 million, demonstrating the significant impact of political advertising on TEGNA's financial performance.



**Capital Allocation and Shareholder Returns**

TEGNA returned $91 million of capital to shareholders in the third quarter, with $70 million in share repurchases and $21 million in dividends. This represents approximately 65% of Adjusted free cash flow returned to shareholders through share repurchases and dividends in the first nine months of 2024. TEGNA continues to expect to return 40-60% of its Adjusted free cash flow over 2024-2025 to shareholders, including approximately $350 million in 2024.

**Sports Rights Expansion**

TEGNA expanded its sports rights portfolio by securing agreements with the Dallas Mavericks and Kroenke Sports & Entertainment's Denver Nuggets and Colorado Avalanche. These acquisitions complement TEGNA's existing content portfolio, providing exclusive, high-demand content that attracts a broader audience. Sports content, particularly live events, drives viewership and engagement, which can lead to increased advertising revenue. Additionally, sports rights expansion helps TEGNA differentiate its offerings, strengthening its competitive position in the local media landscape.



**Full-Year 2024 Guidance**

TEGNA reaffirmed its full-year 2024 key guidance metrics and improved its effective tax rate. The company's strong political advertising performance, coupled with positive growth in AMS revenue, has driven total company revenue to increase by 13% to $807 million, exceeding the guidance range. TEGNA's political advertising revenue for the full year through Election Day is expected to reach approximately $375 million, demonstrating the positive impact of political advertising on the company's financial performance and guidance.

In conclusion, TEGNA's Q3 2024 earnings report showcases the company's ability to capitalize on political advertising growth and strategic initiatives. With a strong outlook for the full year and a focus on sports rights expansion, TEGNA is well-positioned for continued growth and success in the local media landscape.