TEGNA Inc. TGNA reported third-quarter revenue of $713.24 million, beating the street view of $717.94 million.
Revenue slumped 11% Y/Y primarily due to the reduction of political revenue from the mid-term election cycle last year.
The company reported adjusted earnings of $0.39 per share, missing the analyst consensus of $0.40.
Third-quarter subscription revenue was $378 million, up slightly Y/Y, driven by contractual rate increases, partially offset by subscriber declines.
AMS revenue was $312 million in the third quarter, down 3% Y/Y.
Total company adjusted EBITDA was $166 million, down 38% Y/Y due to the absence of high-margin political revenue from mid-term elections and an increase in programming expenses.
"We are pleased with our initial actions to return cash accumulated during the pendency of the merger process by retiring a significant amount of shares," said Dave Lougee, president and CEO.
The company said it completed an initial $300 million accelerated share repurchase, or ASR program, on Aug. 31, 2023, ahead of schedule.
TEGNA approved a second ASR program of $325 million, which was expected to commence this week.
Outlook: The company expects total fourth-quarter GAAP revenue of down mid-to-high teens percent.
In the fourth quarter, TEGNA expects to be disproportionately impacted by cyclical odd-to-even year results due to the absence of $179 million of high-margin political revenue reported in the fourth quarter of 2022.
For FY23, the company expects capital expenditures of $55 million-$60 million, in line with the prior view.
TGNA Price Action: TEGNA shares are trading higher by 1.69% to $15.67 on the last check Tuesday.
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