TEGNA on Tuesday morning released its second-quarter earnings, and the results were mixed.
Perhaps a new member of the C-Suite can help remedy that matter.
Twenty-four hours earlier, it appointed the now-former head of Dispatch Broadcast Group to the role of SVP/Media Operations at TEGNA. Concurrently, the director of marketing and creative services for the NBC affiliate in Indianapolis — sold to TEGNA by Dispatch — is being promoted.
In a Monday announcement, TEGNA welcomed Dispatch President Larry Delia to the company, taking the C-Suite role.
Delia will formally join TEGNA once it closes on its $535 million acquisition of NBC affiliate WTHR-13 in Indianapolis and CBS-affiliated WBNS-10 in Columbus, as well as Sports WBNS-FM “97.1 The Fan” and ESPN Radio affiliate WBNS-AM 1460, from Dispatch.
Delia is a 35-year media veteran who has been with Dispatch since 2013, when he joined WTHR as President/GM. Prior to that, he served as VP/GM of Tribune-owned WXIN-TV and WTTV-TV in Indianapolis.
From 2002-2008, Delia ran ABC and The CW Network affiliates owned by Tribune in New Orleans. Early career highlights include a decade at WTIC-61 in Hartford and at WVNY-22 in Burlington, Vt.-Plattsburgh, N.Y.
“With more than three decades of broadcast experience, Larry brings a wealth of industry and operational expertise to TEGNA,” said TEGNA EVP/COO Lynn Beall. “Larry’s vision and leadership will be a great asset as we continue to grow, and we are excited to welcome him to the team.”
With Delia’s appointment, WTHR’s new President/GM will be Michael Brouder. He has held leadership positions at cable superstation WGN America, FOX Sports South, and several local Tribune Broadcasting stations including WGN-9 Chicago, WBZL-39 Miami (currently WSFL) and KWGN-TV in Denver.
MIXED RESULTS FOR TEGNA IN Q2
While revenue climbed by 2.5% to $536.9 million, from $524.1 million, operating income was down by 7.3%, to $142.8 million, while net income slid by 13.6%, to $80 million (37 cents per share) from $92.5 million (43 cents).
The dip was expected, and Dave Lougee, TEGNA’s President/CEO, was upbeat ahead of his company’s Q2 earnings call on Tuesday morning.
“We met the outlook for our key financial metrics provided last quarter, and remain on pace to meet our full year 2019 guidance,” Lougee said. “With our CBS renewal announced during the quarter, we now have Big Four network agreements covering nearly 99 percent of our paid subscribers going out to 2021 and beyond. Additionally, we will be negotiating and repricing approximately 85 percent of our paid subscriber base during the fourth quarter of this year and the end of 2020. As a result, we have high visibility into the cash flow growth associated with our subscription revenues.”
So, what’s up with the loss? “In analyzing second quarter 2019 results, investors should be reminded that TEGNA’s even-to-odd year results are negatively impacted by the absence of even-year political revenues,” the company explains.
Meanwhile, TEGNA’s “subscription revenue” grew 13% year-over-year thanks to rate escalators and higher rates negotiated in new agreements in Q4 2018.
What’s ahead for TEGNA in Q3?
It again expects to be negatively impacted by cyclical even-to-odd year results by the absence of more than $60 million of political revenue last year.
TEGNA shares finished Monday’s trading at $15.10; TGNA began the 2019 calendar year at $11.03.
