Tegna (TGNA) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full year 2024 results, meeting or exceeding guidance, driven by political advertising, digital growth, and operational cost control.

• Leadership focused on five strategic priorities: team/culture, resource sharing, technology/AI, digital revenue, and cost discipline.

• Early progress includes centralized marketing, new executive hires, and piloting cloud-based, AI-driven station models.

• Reaffirmed two-year Adjusted Free Cash Flow guidance for 2024/2025 and provided Q1 2025 outlook.

• Regulatory environment may present M&A opportunities; company maintains readiness for value-creating deals.

Financial highlights

• Q4 2024 revenue up 20% year-over-year to $871M, with $187M from political advertising; full year revenue up 7% to $3.1B.

• Q4 Adjusted EBITDA increased 76% to $312M; full-year Adjusted EBITDA up 25% to $931M.

• Q4 GAAP net income was $181M; non-GAAP net income $198M; GAAP EPS $1.11, non-GAAP EPS $1.21.

• Full-year GAAP net income $600M; non-GAAP net income $521M; GAAP EPS $3.53, non-GAAP EPS $3.07.

• Subscription revenue up 5% in Q4 to $357M; full year subscription revenue $1.46B.

Outlook and guidance

• Reaffirmed 2024-2025 adjusted free cash flow guidance of $900M-$1.1B.

• Q1 2025 revenue expected down 4%-7% year-over-year due to lower political revenue; non-GAAP OpEx flat to slightly up, driven by programming costs.

• 2025 guidance: corporate expenses $40–45M, depreciation $60–65M, amortization $33–37M, interest expense $165–170M, capex $50–60M, effective tax rate 22.5–23.5%.

• 45% of traditional MVPD subscribers up for renewal in 2025, mostly at year-end.