TGNA - Earnings call transcript Q3 2020

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Operator

Good day, and welcome to the TEGNA third quarter 2020 earnings call. This call is being recorded.

Our speakers for today will be Dave Lougee, President and Chief Executive Officer and Victoria Harker, Chief Financial Officer. At this time, I'd like to turn the conference over to Doug Kuckelman, Head of Investor Relations. Please go ahead.

Doug Kuckelman

afternoon. good and you, Thank And welcome webcast. earnings and quarter our third XXXX call to Today, and Dave Harker, CEO, our and President Lougee TEGNA's performance will financial our and results. review Victoria CFO, questions. open the we'll that, After call for up release. Hopefully, you've had opportunity to morning's review this an press

have of release, If at not it's a seen available copy you the tegna.com.

them I'd outlined defer. remind includes get you our and statements Before Factors forward-looking This includes conference may actual this presentation are started, certain measures. our we may to that SEC filings. like non-GAAP to results in that cause webcast defer call also and financial

We measures With comparable that, directly reconciliations over have release. hand GAAP me provided call the of to the let the to those measures in Dave. most

Dave Lougee

believe our been updated since events faced And you, place since we then, performance, months QX with it's COVID-XX. significant only that Thank good any hard and Doug, we on six then several first morning, in the quarter everyone. from were our country. taken challenges to have It's

Continued markets developments wildfires, of TEGNA global many demonstrations and most in hurricanes severe injustice our to journalists racial those of last related week's weather, course, recently, election. in and pandemic, the the there trust information This of step been way we voting process. on the the country. during have across serve and this includes in focused every actively this being markets building combating

and them procedures state. truth our vote our they voters misinformation, among so the One and by sea polls. the accountable, are to being And regarding headed informing through week, before of is our and and a state armed rules voters the we by and last of counting by truth coverage do that with citizens holding responsibilities watchdog for a that educating elected candidates greatest did officials about

their content News and deciphering in real transparent, consumers trustworthy and media feeds. what's false want social what's crave help

in get from specifically XX% with And a for plays. national through the up outside visitors for we expanded is verified this Amazon XXX,XXX year help comprise all created campaigns misinformation this new year, reaching and three teams detect training provide XXX% to monthly information months, voter subscribers of elections. surrounding generation TV, markets. up and our and the Roku approximately XXX% the And we're We our our to that X.X took detect how to checking, our verify part also journalists debunk XXX,XXX specialized video audience vote. access Verified content on submitted our unique monthly over-the-top with where quarter, our and audience And regional fact-checking monthly with already. streaming our hiring disinformation plays whole average coming to in to We're US now, So markets sites checkers our and on visitors fact fact viewers ago, by currently. visitors video XX% a users. a in services, and up authenticate our compared just X.X topics like by monthly also Snapchat station topics of the expanding million additional VERIFY we're content million in reach our VERIFY to on initiative to significantly the which on market need to viewers Fire Snapchat,

Roku of is We also apps True and have inclusion, been initial August. Two just launch TV that available an on we'll Amazon all an Roku, on which our Amazon quarter from platforms of the commitment, and by Network app have our Crime station update apps those to TEGNA's diversity expanded that completed end Fire other year. this of of now are proud the on And Fire in values. and always have our on updates after core launch we are

his to councils group inclusion and diversity led provide and more we've to working an Officer of by input working feedback mobilized directly held Grady execute employee across me leadership, employee filled Trip. local strategy. and Grady and our key creation The XX help a is initiatives. diversity TEGNA established diversity than is Chief halls, to to which town reports organizational been already the role, Diversity first has management on Under leaders with

our goals our career immediate are policies Our development and training across and practices inclusive and address clear: company. content diversity conduct further recruitment in and anti-bias develop efforts, DNI the

for pressing business the second The signing pledge of leaders CEOs to and than who is and this joining inclusion our have update X,XXX societal action CEO issue. diversity more the committed and addressing

can, to the increased TEGNA's Through for and do two support our that culture has of on look know going we updating to racism. part more these a forward area years, inclusive DNA progress to in recent this should we been proud are forward. accountability you fight these of will systemic We and we've is work efforts, but there actions,

Turning our business results. now financial to and

our big created strategy, in M&A basis. our we quarter you continued equation, expansive record shareholder the third of added four stations and increased strategy our Through reflection of XX% our total As and million revenue in more our $XXX from has that significant execution from up $XXX pillar XX% noted are our revenue revenue a month, and of million, company of been And even further year-over-year total we exclude political last a strength portfolio portfolio never attractive and quarter the our our focused pre-release affiliates. still third results The value. five scale political markets have XXXX. portfolio of when against strengthened on record apparent advertising with

house the senate the Senate and spending And Maine to last previewed key us but we not Arizona, last elections Carolina, stations January as Pennsylvania, of North Maine in scheduled our may Georgia, and South and high done. including not for begun. spending already now Atlanta As We you Colorado. has very and two where strategically affiliate states, to Minnesota, capitalize runoff allowed have one battleground heard, US political this Michigan, we're but constructed states on CBS and limited have presidential two Iowa, leading in up Georgia, in have strong spending to, portfolio in early elections, quarter, we Florida, not week's and

and Senate, our you we will say almost year-to-date, As million I'm booked be spending our will significant recently updated least. had know, $XXX million. election, most fundraising XX% XXXX controls dictate in last well and which of prior sure these above general to Through above party runoffs Tuesday's so record the the guidance $XXX

our continues and to produce Turning business. revenue to recurring subscription margin It a stream. high growing

year-over-year, XX% of fourth For year. million revenue that quarter XX% the increase $XXX of the third last quarter, repricing reflects the of place subscription subscribers in took of was which

with into by As end XX% a reminder, we of year year, next approximately of subscribers that and another the end have next for year. continued this be growth repriced of toward XX% upside the significant will

Our concentrated the rate declines affiliates, far increases big and years, are large very portfolio our offset have us for peers. positions well significant network to retrans four our on several going on relative and sub forward last

years. million secular and And before quarter efforts our XX% we'll now begin cycling political in-house, against full ecosystem. XXs XXXX of as year subscription $XX a political increase proven the earlier. months to have on that our high to expect a growth headwinds than economic reminder, high improvement trends fourth past, given portfolio year-over-year advertising, from greater over sequential years, in durable acquisitions for seen sales of be the initial these and higher the have we for few in even And I the margins the our our now have differentiation we've us referenced us margin well revenues that significantly, upcoming than saving we subscribers political positioned the last in row. in this to three political revenues and and making For percent And even taken our we counting. And in acquisitions immune are our in back year, in and subscriber repricing strong

increasing as expect subscription XXXX, percentage revenues, before, comprise, political more of than and we've see XX% Our revenues thereafter. to we will 'XX and said total an

this year, COVID-XX, uncertainty felt Turning now nonpolitical the was April. the of helped business which April, obviously about starting in advertising noted length impact due for significant the advertising. to in of very recovery obvious period to our -- we much Earlier

share revenues services was every impressive at prediction stronger participants year-over-year, many than of much slightly rebounded including than advertising performance quarter, April. sequentially have which million and gain an since up services generated $XXX In market and advertising to pace, a and marketing Our the we revenue, continued predicted. marketing month almost

years, So few our it's the strategic the integrated partially driven One sales team. by and in-house over including the sales last bringing transformation Team sales we that this of implemented newly TEGNA national benefits

NFL the have from this especially Our football. return also and fall, ad revenues college of the livesports benefited

way quarter, our OTT ad viewing in growth continues very addition, on and services advertising the services. benefiting outperform from Premion, platform digit more traditional strong double streaming In increased to had

and performance be We trajectory. continue Premion's to thrilled with

now Turning capital allocation. to

lowered our which $XXX this detail of a value by XXXX. extension also shareholders million In increase Year-to-date, year-over-year debt expenses In third $XX third the third benefits through will quarter, accelerating reduced in our decline which our total profile with in of We maturities, spending down of net year, our have cost adjusted the before approximately made progress on to prudently of from acquisitions, Victoria drive million priority XX% completed regular place moment. revenues reduced our containment continue refinancings our that the our nonessential cost still through cover clearing financing, due quarter, borrowing. million, pandemic. to $XX months plan. first our the an by nine We've in and we dividend, were Together, our original Combined extended efforts and of well in our our a through strong quarterly helped costs. all for to this more our many are recent expenses to During debt quarter September, ongoing we EBITDA. recent also expenses, the paydown. return of to maturity in overall our plan quarter third continuing we original now of the these while debt our manage our from the

end that a this plan waiting hope control. promising production of you a well forward see are gets year, COVID improvement about this and the As of from national Pfizer broader that's year, looking the we people backdrop under look the know approval. forward sure a to morning that's under just FDA we end this strong macroeconomic possible the I and all continuing saw news I'm hopefully, to to vaccine both of many

through of will has future. similar decisions our shared the and the durability year impact to us This proof the face with in of the and the been adapt it how clear drive serve shareholder made strong the any positioning performance Our challenges you thrive have thoughtful pandemic business in to have of and resulted prior and we strategic value model today. to may we continue we

call the to Vic. turn I'll Now over

Victoria Harker

Good us. morning, Thanks, Dave. you everyone, joining for thank and

due fronts we many discussed, the our not company Dave on the recent to As a had third a just strategic record breaking play and have since decisions broadcast becoming but in model strength XXXX. challenging we months made, pure these of quarter business really in

resulted has capitalize strategy growing decisions allocation M&A thoughtful positioning in our a shareholder has approach diligent on the while served strengthen portfolio very to capital Our and future balance growth, also throughout. well to sheet of strong to same us value stations,

consolidated results. the turning Now third financial to quarter

on results. business As performance consolidated visibility trends, the as TEGNA's well reminder, drivers today of comments you a into our with provide basis my operational our financial non-GAAP are to focused on primarily a as

reminder, prior you'll data in release. and our our comparatives reported press a all As of find period

metrics a weeks year few As for more expand our saw updated help a I'll with the pre-release of my earnings balance detail for few also remarks. of quarter in this you to later third forecasting. on in ago, in outlook you expectations key our our we've

record continued company XX% XXXX was and For total up revenue driven in advertising revenue. the subscription services political significant revenue, and strength revenue by This continued year-over-year. advertising improvement quarter, third marketing in is sequential

different a third quarter benefited this the quarter last on As from comps year. that reminder, acquisitions the during closed our dates

the advertising, of up XX% year-over-year. total revenue political impact Excluding was

revenue, revenue base In terms subscription synergies recent reflecting our Subscription through of revenue business subcategories from was follows. acquisitions. achieved the breakdown increased the growth both of our and year-over-year, as XX%

the repriced Echoing for retrans approximately said for with XX% expected, have this XXXX. better our what as XXXX we Note quarter of our will in As year, subscribers, months than in net also been straight quarter lapped of lower trending subscriber of we Dave which subscribers had a sequentially of have step-ups acquisitions. rates the that reminder, three sequential previously, trend fourth improvement. growth be retransmission fourth

net and with like growth retrans EBITDA strong and positive production. continued However, flow we in do to expect see us high next going year growth cash free our our political subscription margin annuity footprint, revenues, This expansive provides forward. with combined

year. this of year, of of this we've advertising station’s due spite of market ongoing results ever successful of financial and our In indication TEGNA's and finished recovery COVID-XX, marketing advertising slightly strategic This compared great resilient the portfolio many resulted quarter is primarily events. the by up has the the growing evidenced performance return in in saw last live you and As plan. services in to revenue execution share, nonpolitical TEGNA before, to more than had categories a further impact sporting

acquisitions advertising We on also third positive onset pandemic in had specific provide benefit closed shown year's To advertising, note quarter. the color different trends. services April. partial during on further that have I'd of marketing of our the also the sequential revenues dates that improvement since category last some

still and were retail last quarter tourism. financing, down continue and categories to surprisingly, and improving. to the fast As all sequentially services, entertainment, better travel last above and while Automotive they last year, up relative And were that this food you'd home they year. were are struggle Not than quarter. expect, medical were improvement, banking

expenses now to the third Turning for quarter.

expenses operating well were the subscription last the non-GAAP on as fees, year quarter, include year-over-year programming a higher associated acquisition different as Our by which for the of on reverse basis, compensation during impact third closed dates XX% that driven higher same revenues. with quarter

Excluding to in in sales increases revenue, expenses acquisitions cost non-GAAP tied by Premion flat, reductions operating of expenses, were by and expenses. offset programming driven operating

all nonessential already of as including quarter, all prior costs, addition on these our nonessential to the controls in As to place of containment time. all positions. transformation, some implementation our as quite were reduced at holding we of the platform, streamlining on financial underway building company-wide measures, such our we discussed processes acted T&E off One pandemic, cost quickly implement TEGNA sales measures last been have the centralization of such and Note which of reducing continued force to ERP and efficiency business Team and that onset COVID-XX, hiring further efforts, of for efficiencies in master

producing efforts, of these of strong cost sheet a the liquidity. growth As all up now year-over-year. quarter for result to healthy margin subscription High reported ongoing for touch political on and advertising XX% savings a and in I'd these million, contributed margin results profits revenue, like $XXX all net EBITDA adjusted drivers, this the quarter, quarter. XX% was balance to

billion the million our sheet, balance completed several series steps we past to of and we September in million refinancing cash also $XXX mentioned, in with to senior The entire October notes million total of as current our debt over we've leverage due previously March net revolver of sheet, volatility a XXXX. our X.X due market of As months. X.XX the or the stood on taken resulted balance the XXXX. The which times times on On reduce leaving total the the proactive At defined XXst. notes, million $XXX unused repay strengthen for $XXX This $XXX covenant. to proceeds financial were by XXth, capacity $X.XX resilient already $XXX at quarter, notes, borrowing of both October end of the is million we before now just used successfully debt. in XXXX under as as used XXXX $XXX being producing revolver $XXX of our quarter, of million had well the million

on based EBITDA on which X.X items, cash revolver based has other reminder, our a and only covenant, also times creates a like leverage at caps that calculation stock-based quarter eight noncash our financial compensation. As trailing hand

in of the is and which XX% significant cash lower to payments. third our producing quarter, cash deferred Despite continued managing the political our CARES strong free fully due million was second total while a As margin of flow flow, the balance investing third revenue. opportunities. cash percentage on interest as revenue, generate focuses sheet, cash $XXX high of which financial as well generated upfront, flow seen, EBITDA strong due as testament free flow, revenue payments from to you've tax In to we cash a paid quarter model, quarter Act, free we've strength carefully to of

before outlook. I full a our Now thoughts to year allocation to turn capital on few provide closing

As manage to you've recent and history, throughout seen capital provide our carefully continued liquidity months to our value. and has TEGNA shareholder in

restarted prioritized regular or reduced dividend to delayed shareholders. debt quarterly subsequently for accelerated deliver while areas and remained also have continuing our investments We reduction, evaluating and diligent needed to spending where We've prudent. in

of recent now As the part I strategy. mentioned our of ongoing to quarter increasingly efficiency important underway many our before, were the pandemic, an efforts proving operational you before of last We onset shared of with well be carefully cases, remains monitor With that we COVID-XX impact as continue aware. whether well in reinstate to our to uncertain, pandemic evaluate the guidance. increases conditions and still all will you're forward-looking economic the full

like our a XXth. outlook rest more year of already are October there I'd our and reaffirm pre-release this regarding on areas what to the However, few we've for provide color in on announced

revenue Dave our expect as earlier, up mid-XXs. of high full from prior improvement of First, XXs for outlook shared an the year, now we growth subscription

exceeded of million books our already results through [yet]. US strong were With prior with the These races, election week. footprint on we supported the political races. last least competitive runoff House we in will million Presidential, guidance finish expanded Second, and US Senate $XXX at by $XXX day higher

increasing of an combined be the XXXX COVID flow free XXXX, guidance XX% XXXX end our XX%, over as XX% cash Fourth, of high to of year, revenue from approximately pre percentage $XX $XX year continue including $XX capital full of $XX of expenditures to approximately of for $XX we total guidance prior spend. million million million nonrecurring project the million. improvement our our to we're million Third, to reduction a to$XX to full And million XX%.

expect a expense And less is reminder, million well which X.X debt only interest million. by In below end, we is have terms of $XXX we and This, be covenant the we leverage our be reaffirmed to to times now to $XXX year as in financial have or expect cap. that year of unsecured. net leverage range full ratio,

Finally, in forecasting. Hopefully, will we the additional take Q&A to provide your project we'll your questions. our to effective turn remain for that, modeling greater and color will to rate And XX.X%. that range of tax XX.X% with context now

Operator

question [Operator Kurnos Benchmark Instructions] with Dan The first our We'll from take Company.

Dan Kurnos

kind of continuation two here. see of sort the I’ve top positive here. to kind of Dave, mind of of higher questions, level results Nice

Court see that Difficulty] to you [Technical to about M&A of First, the thinking Do potential whenever gets heard into you're announcements just impact, things what the the environment, you a string long election? 'XX then sometime here. on think you see start love kind just Supreme how think post had going you've mean would of win connected summer? that TV next positive very And now

more You've the especially Premion well to they start love hear I broadcasters just within percentage think doing could some revenue strategy starting you next on any think how shift see starting particularly as is improve connected to give narrative some on you're or to Just to too. around or got can there. helpful, yields how growth any more Maybe I'd to of granularity year color still. color improve, yields, how comes around specifics And shift TV, there? you rates would TV. that from the the connected be to two that

Dave Lougee

just se. so them Premion, per I make me reverse all. Let take in position order, still to in I numbers a sure on giving cover not We're those can

year be to lines already to Like pond in revenues. news that. in in a almost and the OTT there made mean applications growth would very, we take growth of rate. it OTT I at strategies and made long from benefit margin. Amazon exit double OTT, got also to that the all year do digit business the on apps Roku of but full aggregate. we'll TV on announcements other we to Fire. advertising our the that's exit at out I start coalition will video Obviously, like first on the a I've market -- the we'll quarter for it. about we've [Newscast], That putting being will call very and tail a did impact it's of player lines relative second of a We're continue, got think fishing we're year, business, an Roku part app But advantage I that's a doesn't pond, obviously, continue to saying to that the the But of side nice advertising immensely be connected on

OTT per we something Obviously, really So is what outright. numbers but yield the it at initially things will own to improving. point be se will higher own the just on those this on while be much the are apps, margins that to quantify small not say that on our

it the relates the as FCC, M&A As we time. same story the what it really relates the last said to and is to as M&A,

is a to there. everybody Supreme the the is Again, that that's cap, put that about. the opportunistic then on because at kind got take we out Victoria expect remind two basis they between looking not big differences capital at about think, It's talked up held on ownership where and not where issue or courts lower firepower hopefully, promised to goes, actually TEGNA as in be our fours June they're rule would -- case, we're But by the the Philadelphia commission we Court I they favor rules to debt July. case moment, think and opinions. Supreme frankly, think they current inclined in obviously, and But where of the before. comes our ruling they think continues And Court place did, along. had would obviously. that the allow had I right in we're court. in And about have two balance actually, it's if so this necessarily the for by ruling to the a cases, the consolidation is the call not As but any allocation, opportunity few take what did priority market We every the new issue, that case-by-case about actually we be if very and the of in-market sheet conversation payback just a But on consolidation specifically. promising

be and would took the completely the that's in throw things thought on option the is and because FCC to would of they case eight it I court ruled and disagree it the think they Philadelphia they back one delay But a this to one opinion it just send with or put they say, that throw back rule months place. court the the directly year another out perhaps to it.

market if timing consolidation is So other big than just unknowable of the of in just a than believe I the almost we fact on a our industrial makes that, of regulatory it, broadcasters over comes And of given this, not Dan, stand, as other the sense. small allowing of comprised size largest two really force that based pass. logic think we almost change time our portfolio, our portfolio, to which of is it having beneficiary handful potentially

So very enthused far. that so about developments we're the on

Operator

Evans We'll take our next question from with Kyle Stephens.

Kyle Evans

sized you I've many sized was at bit up but ago got north in EBITDA. market $XXX in and a think it on opportunity. million you up, Dave, incremental that that to little years Court Supreme it I follow-up of

Safe Your things if was we at get Court? number number station to from you the is asking assume to you time. without that, much specifically higher update need today footprint that that that the the Supreme smaller

Dave Lougee

a was and acceptable DOJ the their we put thing, a about what was large you the well, when I'm backwards extensive to from in as failed be the of very all on size their that of the and went it that one because but puts optimistic what review that want of that don't don't can all that. as our backwards new I actually administration other result The just head back went thing a then that say was new industry. we definition the of made that transaction antitrust takes. know relaxed division, know announcement or

one yes, larger. hand, we've So gotten on

but tighter So is theoretically, the limit DOJ's of could of the size the restrictions some the opportunity markets.

those know net puts don't and we takes out where Kyle. yet, So

Kyle Evans

expense could XQ? also same operating station Victoria, give for and same you and station revenue us on AMS subscription growth growth

Dave Lougee

that got already here, here. I've side on my Actually, it's over table

So you're store same for? AMS, asking

Kyle Evans

Yes.

Dave Lougee

services. So in advertising single digits quarter, our the for marketing it's high and

Kyle Evans

Down?

Dave Lougee

I down. sign sequential out. been. we've a improvement But where minus nice from Yes, left the

Kyle Evans

with the it sounded digit And heavily to on you provide an selling against? update margins. end landscape are inventory going competing there? and competitive most mentioned year double you is Could with the like you Who Premion for

Dave Lougee

Yes.

specific, those year, full Just we'll want very with -- with -- a to we double companies players the space. the aggregate margins, be in say inventory, selling with lot cable programmatic finished I we'll just the OTT There's digit the be year not the themselves there's in. There's the in year publishers, that when again, are the to exiting finish margins. be the we services, of

on So there's our But long harp that from space. continue the inventory form to is people have a that lot we selling in to of we the advantage is source directly inventory publishers. the

days straightforward exchange higher It's offering. a But we're will. environment get you end able the if what publishers that sure the So not of about the display, programmatic they we're to old like and they're certainly they aren't what players there they or are the want a of lot ads want. in but unlike a of and where safety remnant sure exchanges they're the not as and make

Kyle Evans

growth you term gross Could long thinking retrans? of give us Thanks. your and net about

Dave Lougee

and looks It looks good, it's very good, know it We baked are. variables and very the what Kyle, in.

it’s the we in number, know give to so strong, but and double And digits. it's an that exact

Kyle Evans

and gross net? both For

Dave Lougee

I'm obviously, about, end. we've the talking have of sort numbers we about type -- you see the top in of on talked gross,

up, that with it's to line very to can look are good. top net, growth. going it's the our obviously, subs So going be But net -- in digit double

Operator

Morgan. Quadrani Alexia our question next with we'll And take J.P. from

Alexia Quadrani

on color the now think questions, October? now first Press is sounds does consistent little two the in do bit that the in on of I if a demand month second you then more how thoughts to much give every really us sidelines is come if And post so one suggest like wonder just the Just improvement. question in the your It you quarter, is just us? you reports my ad may stayed behind continue your the ABC that market. could see on on on commentary core NFL. running. much And politicals in

You obviously might your you have those ABC view that or affiliates. color, I'm And that any affiliates. Jim, positioning on how change curious on share the NFL. can

Dave Lougee

start I'll the ad market. So with

So as well. interested we're see to

COVID uncertainty because and bit have little the think election people around the been on that to see. and to waiting a holding I frankly,

story span this is about point the election, XX in I last last the of government which approval. our that's relative news certainty think FDA the also positive vaccine to Minute actually, just the produced, being in outcome CBS assumption now plan you by night, for the for and Senate, the three stored on days, the about morning's a about have an on But distributed of already us. of being notwithstanding be a

So I think news for ticket the are to. large I that kind looking advertisers that's of think

to monumentally if in week. wouldn't frankly, would from this largest as quarter. close ups auto here -- mean, dealers back to come heavy yet. to well. be And the out to Tier quarter I so improved just surprised still hugely fourth but I But pretty auto in been has mean, the December result as and XX some which working not but were second quarter the as is saw call is, to second -- And But we they've points X out here few happened auto the obviously, Tier back anyway. standpoint it's our exposed hit retail. not category. X, I a positive still from just decent really I pretty of a what's points of improved nice, it we're is the it's a they And it's quite in

like and has come really strong that see we back the it to has. really very trajectory auto So

Alexia Quadrani

on then NFL? And the

Dave Lougee

Yes.

than there's it the On we has that don't on the know vast NFL have where and as we're will NFL, other come out confident will that's on lost majority of NFL. less cable. from was look, broadcast a for distribution, homes cable, the the less and obviously, package some But highly cable stay problem

puts puts gives actually broadcasting. it -- So it really --

exclusively it, comment that. that putting ABC but is and nothing gains sense no ESPN. If know ABC it the So anything the I I I did, inside rumors part on versus think wouldn't or makes I about of on information about conversation now have

do that So comes feel how affiliates. a quite it but few out, And they're see the bidding. I'm not we we'll surprised I in -- have ABC all

to out. lot NFL, So highly comes a we'll We're it matter the exposure how have confident. no of

Operator

next We'll Steven with from our take Wells Fargo. Cahall question

Steven Cahall

year-to-date, and first, since to the big senatorial revenue with know But do big your was pretty a political footprint Georgia? in really as you Maybe wondering, could you how tough be there, I have what any unprecedented. took this runoffs is pretty it's have in idea in that I percentage And was of Georgia? just you

Dave Lougee

Yes.

the breakout amongst front So of say of of I Senate terms don't wouldn't me. they were so the the Carolina but spending. be George's North there were the enormous in have numbers amount biggest. massive Obviously, they, races they now. I of many in frankly, was And will

won't Steven, reasons. for don't runoff. we frankly, history relative the very, side. overall, big on don't not those And competitive have, to in to large I have media We didn't going trying size a Georgia's now, Kelly given good Steven, I would the Loeffler that competitive was control it headed markets, seat to seat. will a was Senate for very it -- matter now. run-off two and matter knew obviously the think that of they the other no because be -- know But we're it than presidential to think was, be of that spending answer the both race needing end what I be obvious the it's a races think in whatever one closer it the be

Steven Cahall

have year. And next either early this then you a late repricing or think year distributor that's major I

that's that rate. that think I'm to contract gave market impacts just is you below of the recent upgrades retrans in wondering or if pretty this more retrans? is that, gross for something that XXXX I guidance year,

Dave Lougee

our I It's it really the even question. 'XX, all year. marginally won't Yes. this appreciate about affect numbers

Steven Cahall

And then you're of a me last on big for one is Peacock, NBC. just operator

get in Peacock what's catalyst ad wondering monetization or that load live football your relationship? And a long when Do of wondering I'm just guess, Thanks. agreement I games reset? like happening first, that? did And is NBC on I'm term of how Olympics or any sort events the summer? next with in you affiliation share So now

Dave Lougee

I Yes. question. appreciate the

is having conversations of with very now I we're at wouldn't negotiations next with agreement the year. them. speak, in beginning any Steven, up NBC. So The We're with

having NBC And larger wouldn't be the it so conversations is for with obviously, but appropriate we are as those. Association, Peacock comment on affiliate me to

so would I And that. just leave it at

Operator

Arthur We'll take our Huber from Partners. with next Doug Research question

Doug Arthur

you Dave, sub to declines. pinpoint I want don't know loss

it little go and row sort months in wondering I've the hit and COVID, frame then were up. talked a how in you taking you second you've if three bit of a was what it follow that than QX of a back I about said a from just I'm quarter think forward? to industry see improvement you of the you're better terms kind I seeing you now transcript, in got going And of incremental improvement. can if

Dave Lougee

I'll Doug. you little Yes. color that, give And a on

ecosystem. we during much that terms we any sports part has and than what think because that which that we obviously decline key a point denominator than ESPN, more I seeing getting TV a package, going And nice of be is continue obviously, the the broadcast of the but happen -- on traditional that's April, package, they of And what keep or rate mix sports thought that’s we're ended really fans. would concerned better you're all into a in of So on what into the is buy TV sports where theory a because But is, the COVID that were them, there there's base continued gets in, of starting to we're say, rate many paid decline durable lower, back the to what to out subscriber of as up now -- again, fan would think, people is both virtual obviously, virtuals a regional sports to well, that the we're they're really whether growth. pay it's and equation faster whatever, grow, really, is showing or as because the or pay cable Turner, networks, we'll to TV decline.

what we're year-over-year, X. a now losses -- our are are to sub closer monthly -- we're to And than so basis X they on now Doug,

Doug Arthur

in all coming expected cash political the beginning the And improvement at year. better flow, being given of in and obviously, else then Victoria, you the than equal

the through the debt If -- load XXXX? XXXX, you of looks of don't I you do do end think just no end know like the transaction broadly. at strategic what you

Victoria Harker

Well, whether element stock obviously, depending below the X times. How price. levers be much on buyback That one lower that at of and the pull, than reinstate will capacity. we what X times of we remains an really

debt balancing capital that versus a or tuck-in organically accelerated in investment acquisitions. of from we'll standpoint, it’d the be paydown terms allocation versus whether any So be CapEx business, in

So all of to those that us. open still elements remain are

Operator

Huber our take with Craig Partners. last question We'll Research from Huber

Craig Huber

advertising the better do are bit quantify think us I heard little you TV post give how pacings maybe of earlier your you a comments of some Dave, sense little a could how just we're election? looking? but

Dave Lougee

good, Actually, first Craig, looking year quarter. since they're best pretty full the the

it's say, Let's digits the just of call down looking you it, improving. around, we're X%, and day, election and take weeks improving right roughly when just sort after at mid-single minus

Craig Huber

is is that still you starting or a thinking drag get meaningfully auto better? But are to

Dave Lougee

not worse but much that. down is Auto than

number. not a of much it's to the drag It's at So now. all not relative

Craig Huber

aggregate as can a versus how say your And I you, was news ratings the would was you you basis? that before know have mean, news, well. us I quantify how for this. But the across sort what don't year portfolio, ago if and guess, I morning question year-over-year trend is for late this for on that your of evening trending in that virus? that the you news particular, trends other My maybe

Dave Lougee

last frankly, Yes, we stations continues especially to with over consumers. up TV younger continue overall news our perform to over and local see viewing and on year,

persons XX. For example, across our markets, XX to

that, end we've had lower year March to growth. young, from month every that numbers I September news seen would. everybody this themselves Now in XX And up year. the evening considers over we've not been viewing last But at and we of last the

we'll and think -- has see increases growth viewership number us. out, think that get that even number the news. local as back And on the have have. we bottom of is we Nielsen then the is in that of in watched TV that we at like cable weekly did And time to some from is while the that lost don't share coming So actually genre working of put the one out, numbers last And we the still the back probably, now in but that the the relative to pandemic, height of watching month September, one news line those of included XX% town. The double we home. on game year-over-year the digit I the height frankly, spent news settled that still news television cable when it come I down, of And at some election. bled was especially among

Craig Huber

ratings I'm night, sorry, are you? the late and about news how trending what also morning those for

Dave Lougee

lot But sense. a makes it's bit, commuters really kind in little A that the seesaw to are COVID this there's so Because of sort will of the XX:XX later loss a people sort many audiences common and we up sense. on due which makes last I back available that normalizes. but early higher, household, available interesting morning Yes. COVID been just conversely, saw, so are expect less audiences at there's of temporary Craig, when

Operator

conference will any question-and-answer the today's time, That speakers I closing additional turn session. remarks. concludes At for the or this to back

Dave Lougee

closing, us us that continue of and unique value our We look across you, thanks, to In even and model Thank our conditions. for that these the just very the providing time important these perform this forward all stakeholders your today. operator, has have market want taking reiterate resiliency year most for again, allowed during uncertain I for to And of everyone, the to join you our to we to US proud come. we're times. the to during business months audiences in time. continuing years shareholders the to very role and played Thank to

reach any great a please have additional and everyone, Thank Kuckelman you out you, Doug have questions, to day. If XXX-XXX-XXXX. at

Operator

for This call. your participation. you concludes Thank today's

You may disconnect. now

TEGNA (TGNA) 9 Nov 202020 Q3 Earnings call transcript