“We’re making important progress on the key initiatives that are shaping TEGNA’s future,” says Mike Steib, CEO of a broadcast TV company that appears by all accounts to be in growth mode. But, what of TEGNA‘s Q1 2025 financial results?
An expected revenue decline on tough comps due to political revenue in 2024 was in line with company guidance.
For the first three months of 2025, TEGNA’s revenue fell to $680.05 million, from $714.25 million. Five analysts chimed in to Yahoo! Finance with their estimates, and that put the consensus value at $675.61 million — making the final results a nice Street beat.
With operating income coming in at $109.02 million, dipping from $137.56 million, net income attributable to TEGNA came in at $58.67 million ($0.36 per share), compared to $189.56 million ($1.06 per share). The EPS came in line with the high estimate of 4 analysts reporting to Yahoo! Finance, marking a win there, too, for TEGNA.
As of 10am Eastern, TEGNA shares were up 4.6% to $17.43 per share.
RETRANS BESTS CORE ADVERTISING
For groups seeking to curb retransmission consent revenue, even as it faces a swift decline by the end of the decade based on research forecasts, the TEGNA results will not make them very happy.
Distribution revenue was again the biggest profit generation line-item for TEGNA, moving to $379.56 million from $380.5 million. By comparison, Advertising & Marketing Services revenue fell by 3%, declining to $286.4 million from $296.1 million.
Meanwhile, the political dollar difference is significant, with $3.62 million in electoral advertising seen in Q1 2025 compared to $27.83 million one year earlier.
For TEGNA, the net leverage ratio of 2.8x makes it a buyer once deregulation of lower ownership rules happens; that’s expected by the end of 2025. For Steib, further chipping away at the company’s debt while growing profits is on track.
“While the macro environment remains volatile, we’re staying focused on execution, reinventing how we serve our local communities to maximize the full opportunity across both linear TV and digital,” he said ahead of the company’s earnings call on Thursday. “With industry-leading brands, top talent, and a strong balance sheet, we are well-positioned to win.”
