TGNA - Earnings call 3 2023

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Operator

Good day, and thank you for standing by. Welcome to TEGNA's Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. I advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Julie Heskett, Senior Vice President, Financial Planning and Analysis and Head of Investor Relations. ahead. go Please

Julie Heskett

financial morning, call call Good quarter Dave to third the that, review review our and TEGNA's to and Thank outlook. opportunity questions. quarter-ahead webcast. and results. Hopefully, Today, earnings conference After TEGNA's will Harker, and CFO, open CEO, third and our quarter results our discuss the you. we'll Victoria welcome performance for President our Lougee; had and you've

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

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

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

David Lougee

everyone. services verticals centered performance, reflect services. as good record results in TEGNA's and third achieved and quarter Julie, a efficiency operational by quarter our optimizing continuing trends you, on auto value improving shareholders. and driving We marketing subscription sequential and morning, improvement Thank driven key saw for third advertising revenue long-term plan revenue, to for and in business our enhance such

I'll than or window, earlier actions moments. a advantaged nearly underlying $XXX We August completed of capital in in talk we In addition able we shareholders. $XXX to at repurchases return this market. commitment couple also purchase end were year accelerated these of the to This ASR. open share to a return million results, positioning to that Despite and strong capital completed more our our opportunistically limited shares our quickly million increases of initial the anticipated. ASR trading

last Total the due political XX% election revenue cycle the third finished guidance, exclusively to results. quarter almost midterm in revenue with line year-over-year, from year. our Turning in to company down reduction

slightly year-over-year. just down was revenue political, Excluding

As up provide a TEGNA third quarter by increases, supported was and continues I to and offset mentioned, stable cash rate record year-over-year. flows slightly partially revenue declines. contractual subscriber just predictable subscription revenue subscription by

We our is third improving broader our advertising sequentially fourth. subs Despite of continuing traditional macroeconomic the XX% into year, revenue further first quarter trend visibility of finished last quarter the year. this X% the end better the reprice to into year, outlook. trends X expect challenges, compared by the approximately and than quarters to of AMS revenue of that down were the

calls. national year-over-year when loss However, underlying we've account basically Premion discussed the adjusting on were advertising flat for trends prior

Automotive, our up largest consecutive for year-over-year be and Auto our category within second fifth was strong now XX% year-over-year AMS XX% year-over-year. continues was show continues quarter, also quarter. notably to strong Services, the improve largest category, in the to and growth

large ahead, Looking the performance Olympic advertising next a XXXX a large last and much smaller portfolio stations NBC Olympic TEGNA year's Fox with of Summer of from our be the year's our very at of compared strong favorable for Bowl portfolio CBS portfolio cycle, political in year well will Super on as on as portfolio. Paris Games presidential stations to

our to allocation. Turning capital

We our on of shareholders. building record at returning go-forward are the track capital TEGNA enthused about strong opportunity to and

bolt-on pursue and repurchases our outlook growth augment evaluate performance Our unique affords return and organic opportunistic and share to balance capital and to M&A sheet shareholders, while financial initiatives further dividends, to industry-leading resilient us the simultaneously ability opportunities. we attractive

track return to surpass shareholders. our announced We're on previously capital to

satisfied shares of call, we announced our open These will is On of existing under shortly ASR share than of executed of the earnings our $XXX of us million blackout to million million recent our before market, opportunistic nearly just result shares four repurchases transferred million. initial said, in program. period. of anticipated, as shortly. two and second $XX million completion entering Following TEGNA commence resources program purchase repurchased an the to the $XXX retiring we worth I $XXX earlier incremental our in slightly last termination our program ASR ASRs, $XXX the steps, million stock $XXX the completion program these the expected The deal That fee shares. were

to operating build to track of record. flow disciplined return Looking use strong cash ahead, and our continue capital performance free on position us

optionality. that ASR of shares we and both under I the leverage programs balance incremental end XXXX, said, that the provides sheet have year in we As and an Even net industry-leading with expect Xx. to us purchase after still

generation free flexibility the cash and our additional recently as earlier. political allocation Bowl capital both strengthen Olympic tailwinds make returning on organic Super opportunities and to to shareholders next and mentioned further expected This across offers we dividends. is flow M&A repurchases strong Our decisions to year through growth, share due capital I increased

ABC. with network Turning our the households. the country, across comprehensive updates. ABC cover we million mark to in XX This serving strategic which X% a reached of deal affiliations U.S., In the XX renews multiyear nearly quarter,

ABC, leading stations watched some partners nation, and program provide local our trusted -- most ABC's We partners. and Our is local our program platforms with of our strong scale negotiation with the the successful the believe leading entertainment, coupled our win-win strong with audiences. programming and local popular sports irreplaceable news audiences large ABC engagement. with our with long-term partnership have like from programming program we stations with deliver relationships TEGNA's combines highlights within which local news,

and vast professional ecosystem, sports. that fragmented programmers. that One happening of shift is advantage cable area cable enjoying specifically now with reach reach distribution and far channels audience highlights in more what's broadcast powerful other most The a is growing competitors over

and not smaller innings, distribution their move Antonio San are air and to a of and teams percentage market. in existing chance year. aware cable with a these model country, #X across of Professional RSN leagues new local Antonio cable sports of to Ken in consumers, station sensation, are final during acutely We're excited this we the the sports the in from spurs thrilled the capturing not and the Spurs quarter, be and the era. the just it's With to of Victor than is shift Along games more announced first the about season all exclusively lines, [ this partner that inning broadcast seismic attention reach will reach this French addressable in this globe. a traffic broadcast ], our smaller [indiscernible], San for broadcast anyone

RSN more current to the look out, bankruptcy plays announcements As come. proceeding for

large to college hit its local are Given local quarter channels strong on of leagues shows all this for quarter. milestones. in listens slated gone well third we trending positioned sports markets, very with home quarter, now XX more lock-on with seventh locked Also daily four leading in portfolio digital Its very, our network month, Daily in LIVE, the and shift more and local and the for million views and has four in programs stations season September. sports our fourth this the past topic opportunity in Blast sports major we sports. big show fast audience entered launch daily per pro launched talk our and

than gray Herst ever. to Now U.S. an being Sinclair as added market large reach, XX all markets We've and the of XX footprint as with footprint XX% of station our larger a total to more well in of additional reach TEGNA the than our current distribution our markets

to model believe evolve, sustainable broadcasters content Blast landscape will simultaneously while programming offer As the option delighting we their increasingly Live's our continues a Daily efficient for production needs, audiences.

rolling the dedicated the people's also -- Delivering national We're that information Samsung, XXX,XXX live about difference the consecutive the streaming our streaming Apple into other Chromecast out to And expect third quarter, apps Weekly apps apps with XXX the impactful channels. every Roku, out our show TEGNA of second Fire quarter fourth -- now are ended and by year-end. quarter. and employees that combat for engaged we its one this apps more available these Verifi, for say, than third that streaming, enables proud on have million various TV These newsrooms. are mission a with platforms all quarter, rolling quarter. stations a increased fulfill resilience quarter matters each apps LG, the approximately across And all have very and million with XX% devices. across minutes verify of during this those now of streaming to station our us brand X.X lives center our minutes in I the platforms our year-over-year make the should TV our day. stations started to news -- watched of on for in followers increase on reached and station investigations streaming determination TEGNA in and and every

Ida. to after that call The their nursing hurricane deplorable home Their our turn led Louisiana. WWL, station national to and to on loss. they law changes a shines congratulations received the I'll the work Victoria. do light for over With changes New lives changes special residents that, shout reporting a for conditions news and we in recently much investigation A out now needed in Orleans, investigative living

Victoria Harker

Good Dave. Thanks, us. joining everyone, morning, and thanks for

revenue, and improvement continue third to already revenue. in you've heard, we sequential deliver achieved marketing advertising quarter services As we've record both subscription and

expense with quarter, successfully our and expectations. achieved line of last all also provided in revenue We key guidance

to results, ongoing I'd and both of team's the quarter our in reiterate down Before and execution plans. financial commitment those capital seen drivers management Board shareholders, our continued on return to of as drill I focus on our third like the to you've

very during on to mentioned committed Dave And of is million that return pleased cash Execution already in underway. pendency As repurchases over the X earlier, we as has you've nearly the of well capital $XXX our transaction been seen, share past accumulated that months. are

million we count accelerated initial weeks a anticipated. shares. approximately initial repurchase completed During share previously outstanding reduced earlier on the third TEGNA's XX, $XXX than the million few we million August ASR $XXX program The program XX quarter, by share

of quarter, addition, retired million through X General's were shares the extinguishment approximately In their second in fee termination obligation. Standard

As $XX completion repurchased third shares before in Dave the the million XX, mentioned, our blackout million nearly additional or opportunistically on and open September we ASR first X period of quarter market. the entering following an

share reduction total result, as quarter of a was the $XX million. third of end the As

as announced kick this, week. Beyond will off in ASR $XXX second in program this our repurchases million targeting August,

$XXX million of of termination merger May, all fee the actions, committed the market. opportunistic open in termination through settlement share to ASRs, is in result these nearly since in the merger repurchases of agreement repurchases late and of the the TEGNA a As

XX a market by As XX expect of commitment, million March of actions. approximately current outstanding prior of undertaking to be retired Reflecting XX% on based prices, we to than more XXXX these us shares shares this end to million result the

a agreement, out declared October. Additionally, for quarterly increase the to was first which the following the paid XX% termination the regular Board time the of merger dividend, in

including sheet, return buybacks are balance leverage, strong extremely and bolt-on positioned capital to shareholders organic an to and well have investing continue we in we while opportunities. low dividends M&A to aware, also you're As very growth through and

of average debt and near-term $XXX quarter the our fixed a a manageable basis. million. maturities with have rate XXXX, bond with of also We until billion of ended debt very no all is in total attractive on cash X.X% March at We of weighted $X.X debt

As Net leverage revolver. billion a the applies cap a reminder, X.XXx. $X.X at that X.Xx is to our financial quarter only leverage covenant ended our undrawn

All of which current continues of capital and environment. in and sheet, us around the provides our executed actions planned these this strength to allocation well differentiate balance macroeconomic decisions highlight optionality

non-GAAP TEGNA's Now performance financial into of as our financial trends performance. comments today drivers quarter third to on drivers the let's our at look with results. consolidated on primarily of are a My operating provide business a you well as visibility the our focused basis take

period our prior and all can You in find comps data press of release. our reported

our when last exclusively was with company line total due political For year-over-year, compared almost quarter, to midterm the lower year. election down revenue revenue guidance the third XX% in range, to cycle

third slightly the political revenue, of XXXX. quarter down revenue just total Excluding was compared to

digits. record revenue, quarter year-over-year, contractual declines escalators, which subscription partially driven from of increased rate was was third Our offset mid-single rate by increases subscriber subscriber slightly by

last of our quarter, renewal we up As have XX% subs end for additional of the this we by traditional year. an mentioned

previously had by renewal XX% we year-end. Big equation, up the for we of had of approximately four subs side stated comp reverse the On our

We we are subs. a comprehensive four announce renewal XX% pleased our ABC with representing multiyear to reached roughly agreement of big

agreement our the renew to this of look also toward end NBC year. with We

when the AMS the adjusting I'll of the drivers trends disclosed revenue in gains key trends were quarter better were and Now a single previously by third trends flat the driven quarter of unpack advertising services, earlier goods. These national Advertising in insurance performance to Despite finished this the compared macroeconomic last X% down improving verticals premium account drivers. year. the challenges, and improved and revenue of second. in quarter automotive, year. the than were such third sequentially quarter loss third AMS for as basically packaged

fifth the the quarter AMS, we underlying to Automotive advertising Within reminder, largest our advertising continued to a advertising in for services the are began HVAC, double services categories. pest control second home up digits generated as in consecutive into strength As quarter third and growth thrilled digits electrical, fourth. with continuing and also up category two year-over-year. perform quarter Automotive the was with such improvements plumbing. year-over-year double services see are The well. and

telecom, in current restaurants, Categories the media, facing healthcare and environment headwinds banking. macroeconomic include

Premion. Now to turning

As are the winning marketplace Premion convergent allocating in TV quarters, local streaming. spending its to over you've position heard continues larger dollars prior the that strengthen advertisers to by additional

buying leverage managed Similar enabling was national single year-over-year, down agencies capabilities, account. keyboard During services of last revenue to the the Premion a year, quarter, loss large hands-on selling Premion impacted workflow. introduced to or programmatic either by

However, OTT growth Premion's the was win. local in where is strong, year-to-date. positioned on revenue, focus digits primary is to revenue local up Premion double uniquely

As of be year, the X a impacted However, cycled by points in the points at account account this AMS the beginning X of loss impact XXXX. quarter, fourth given X on in reminder, of the We AMS first loss will the the seasonality. quarters the account national

annuity-like our be from free political TEGNA's by will the EBITDA election robust on basis. Super ahead, a more markets X-year and flow TEGNA, revenues Olympics at Looking Summer revenues driven and a key stations XXXX carries Bowl. in presidential of total XX% produce and than favorable subscription year cash the strong cycle, and high-margin portfolio a benefiting

Turning now the to third quarter. expenses for

our programming X% compared range, third For expenses with the $XXX guidance quarter, of higher non-GAAP fees. finished by line operating to up last year, million quarter in driven

last finished due X% programming within expense down operating to when expenses year and efficiencies. guidance range quarter costs, to ongoing the operational also management non-GAAP Excluding for our compared

strategic merger run Third quarter increase recruitment slightly were activity renewed expenses coming as previous termination efforts. as higher planning than development, around well we the as employee out retention of and our rate

quarter well. fourth year-over-year expect We be expense as lower to

As expected, revenue down high-margin absence driven the costs. elections adjusted EBITDA third million higher year-over-year, midterm $XXX quarter XX% of primarily from by of political was and our programming

balance generate as to thoughtful flow primarily free of million quarter, driven durable continue and the our historically management We we've by revenues of the cash $XX high-margin during our strong subscription sheet, done.

XXXX to Now outlook. turning

we to help key quarter guidance guidance in financial saw few you our walk meet and key the full a remain for model all let's track As year today's To metrics. guidance of third provide quarter release, metrics on our near-term quarter and fourth forward expectations, you fourth for metrics. financial through the

election revenue be the basis we midterm absence the reminder, comparable $XXX impacted a of from the a expect of by in on As to fourth high-margin political quarter last million year. disproportionately

mentioned. year-over-year, to teens I fourth the political the expect percent revenue high driven For quarter, total revenue mid- we just of by absence company be to primarily down

projected single-digit is programming in range operating to costs, quarter quarter programming project quarter expenses XXXX percentage by single-digit increase expenses. expenses low low the fourth operating to be in revenue driven flat. fourth quarter year-over-year. down fourth political, the Including to fourth percent to increased forecast compared be Excluding We we

to meeting as Now guidance turning them. full same or remain elements year reiterate like in full the XXXX. on and remain our to quarter, ranges we last We'd track XXXX announced year that exceeding to

for our reminder, all on investor of As our website. these can a our XXXX presentation you in find actuals metrics

million $XX projected the projected the to expense expected to to to million. of million in of to the Depreciation range to $XX expense $XX of be be range million million, be of amortization million range the range million. is is million. For the $XX be is year, Interest to corporate in in $XXX in $XX to expected is $XX $XXX

repurchase expect to of incremental to expect end Xx. net impacts with XXXX with and continue both range that, in capital now programs $XX in XX.X% we your I'll Q&A forecast be range We XXXX, And rate expenditures turn after to questions. an below of in XX.X%. ASR the the million take the the leverage effective We shares to to $XX tax million. to to of of Even

Operator

Instructions]. [Operator

from Our Dan with the first comes line the of Kurnos question Company. Benchmark

Daniel Kurnos

for of the reconcile. sort of the all trying I'm around guide, to still numbers Victoria, but thanks just

sequentially year-on-year heard flat national the seasonality better political. ad that's relatively crowd-out local loss. think more in should were trends know fair. a it's understand you I talked easier We've step But to improving year-on-year said trends out with an still a sequentially. -- I and have for guys you the with the into due QX, gotten basis sequential national Premion year. a for and know group I -- impact that QX, early bit comp in up about broadcast ex And called Plus has QX. you next we're political little you little

So should guide? on that understand, just in conservatism QX maybe just bit is QX. trying of also now be visibility churn sub and just trends of lack bookings because you're in to sort seeing little a or there sequentially Is it based than less some

of to quarter? trying sort you are trends just next get the So how going sense guys thinking into a of about

David Lougee

around you the Dave. one take I any, not just Dan, expecting -- mentioned it's talk the about frankly. I'll first just We're political. last category --

good We as footprint. big the never have tremendous our year, had for a we year, for footprint have don't primary a real a footprint but necessarily as a we've full is

primaries. presidential early For

So we see some maybe dollars don't of otherwise. those

that's rest about Julie advertising. we not political. But but the underlying have speak where fine, enthusiast I'll most do around let we'll the So to

Julie Heskett

Certainly.

flat underlying normalizing sequential reiterate are continuing And heard Dan, So right, been quarter. fourth in will you're the you trends that would improving, quarter, into year-over-year. I trends have third that

X our the for purposes one Premion about being QX, long year quarter which it for in long be in we've better second a more what third quarter and bigger revenue impact, quarter. fourth points adjustment all total is talked and us, impact will national it it's your X guide. So that to been about is as The said, year a business, Victoria fourth the to included in headwind in points had be all going also is

you that would So flat alone, just digits right, be QX. in QX, mid-single math in if up roughly do you

Daniel Kurnos

Okay. I the bit off-line, the a to good through pieces hear little I talk of but We it's of, guess, more sort get and trends. it, of can continuation

a is to this a want just of terms underlying think I the surprise good just out maybe QX in side, expense get of But the there not a I guide me. little bit On maybe sense, OpEx. just is

You just David. have I out, don't comment you deals. have coming up, think name NBC, won't ABC course, know, of but about did up seen ABC, you so coming played I to on just know how historically how there? the still the growth a specifically been NBC, which and deal variable

But So be maybe and super pieces QX in the efficiencies more both thinking I those is would underlying, driven don't excluding how reverse. into helpful. growth two know then there should take we in those OpEx be to So just costs? programming about be 'XX

David Lougee

I'll Well, overall. speak just to

others we expense the issues of mentioned, out that to of the not strategic have have -- failed referred also Victoria do might that Dan, acquisition. to As some you relative are that coming

relative work outlined. advisory won't been work have Victoria be rate things some and some we outside the run of dollars. spending So permanent types It to some a that

but the calls And comments. burn reverse of signaled just Dan, bit that a a that we into year. say So relative reverse we'll dynamic that of I se going -- two our would merger our not numbers to to on we're the I'm next not business. little deals, next largest by given And realities point I'm that to two would you those expense, stand just programming ago, of have after on to on guiding fourth still going to I but off comp in a be I got process that know, well, to go, expenses on relative came comp as to number, other say, to relative going we've of out and or new relative deal roll year. not should was most per they're And as that the to network topic, the it than comment as but

Operator

question with line next Fargo. the Steven Cahall comes Wells of from Our

Steven Cahall

on first, follow maybe just Dan's a Dave, to little question bit.

what and been you you of reverse be lower paradigm know it I talked your about. new a that to rate have used consistent comp of that peers growth that lot So the is than

talking who us think ABC, are partner points I to up clear what just to network key and impact coming of you're lot renewed that affect their business. plans consumer. what sports figure ABC That has to is the trying to intend a your or discussion you how out are have that NBC Disney with in some you a they when your NBC. stations relation has been to streaming on take pretty direct same like

defending to wondering during appetite What's repurchases. some you and help kind So especially that to sports path? the you think you'll to see you all that then continue you're the you ASR, how $XXX is? price And streaming. just could million ASR more after or wait something had about is the Victoria, how frame of allowed that upcoming stock us future and where your against Are the on of just discretionary down if QX kind going share content

David Lougee

as have first about one one end. we're we -- negotiation first take know, now and between the one year's -- first. public have large we I you I'll as

don't remains So it obviously, what obviously, -- really to value to in ESPN the period. simply ago ours. has points ESPN I of on and frank, on issues, into the of as indicated yet that don't some of exclusivity case ABC, discussion negotiation comment I'm going last been away relative during a partner ABC, call, get Disney exclusivity time want the sort went ABC, to would just I commenting the think I the because But are

to look part you be a do marker games streaming, say moving broadcast at what think broadcast time. for They're say they're ratings value when when Sports I'd not I exclusive When in the equation. you that simulcast. is very just the the so NFL. the right? of will And all it's long sports to big And it's streaming,

the exclusivity on that but simply I of So so of [ play]. all of newer that sports would which become versions the the part existed just -- before, some say lack value --

is value around is from but different not, that a of value. I just what it's putting and probably then And conversation reality an then helpful standpoint it's to exclusivity. ecosystem So having not numbers, based that's once know about we has of a that how on that was that think a a realistic all when it,

Victoria Harker

And to address the some second the first in weeks -- portion of your question, a program Steven, a we ASR marketplace. use in given window early, program the ASR the the finished opportunity. We the time had compression few of in which

opportunistically, as My opportunistically on and renew have, program $XXX expectation that execute we use of million the the moments million in happened when ASR share million off to I just But we're we the the then those use that week that. initial the obviously, is And on primary then. market that of will will so over will approval $XX and sort and see $XXX be we know, then during use forward, and Board time. existing make buybacks this you which can is announce. and kicks to So the going of it we to window into go buyback an likely But what time. we sure subsequent want quarter. program that, clear set that

the when in are and them in that the actually market there right. into use days have used we windows in opportunistic We prices when time clear that program. get it are can we We

Operator

Our with next line the question Barrington of your is now Goss Research. James, comes from open line James

David Lougee

James You after comes move next. back on and on, see operator, if the

Operator

Craig Partners. Next Research with question the will come Huber of from Huber line

Craig Huber

modestly, said account, that you just digits. last did please. which hit in My it first with think it Premion, us, how just means mid-single quarter I lost sort Maybe assume but comment on the frame of the you was that had question obviously, I'll quarter, national down for guys the

Julie Heskett

on local it's I'll modestly. Julie. The focus down Again, the would the total Craig, are the commentary side exactly premium of take is the same, be revenues while Yes, that. business.

that year-over-year, local double we is up is know national So digits. down year-to-date but

Craig Huber

past, the said digits your ] the in third in a quarter. mid-single that subs had trend retrans similar And Great. have Okay. guys Is you year-over-year. down we [

David Lougee

Yes.

Craig Huber

then stock thinking through in Is obviously repurchasing aggressive you And you next as next went local several anything you times revenue have make differently year. all Okay. you year? today. as for have ad been your here there that a guys very windfall mind, Obviously, you're

that next would it? ton obviously of on things agree to you on quite a from the investors, your You're out buying ASRs, back preclude your anything to of stock think there that. mind you're maybe side price want Is that seeing is arguing there low however continue I would rolling with that year you macro in about stock these, guess,

David Lougee

balance her optionality, And pretty on Craig, to need out we do said, just because the there. in shareholder do, is given we to in what laser-focused any point the have sheet, as and need management's it's our it's capital And to have return, but said that's balance that what obviously best not Victoria Dave. avenue. of I'll the foreclosing like we ability for script, we indicated, shareholders the use return -- of I that Board is with we to strong uncertainty be environment. on our this very we of are as focused in return the -- but some --

Victoria Harker

script, in expand my through on bit, don't that to any mentioned have as just XXXX. a I we little maturity And

on call the 'XX. option night occurs of Our later fall first in that

advantage that opportunity, there's reason to of rates, financially us all interest wise we can't no do but take that. for likely current not Given of

a in rate useful So the to do manage sheet our of we've is the dividend potential maturities, recap looking plus strength buyback interest both to those balance the future debt invest organically. got continue at and on maturities shares be the and -- ability recap environment

all So it. of

Craig Huber

is final you to that year, for all said this the down my sort net here, down about we're then up and retrans. and question, modestly And slightly of going retrans think Net how for shape year.

Victoria Harker

have Yes. may quarter fourth in that. up coming the negotiations impact again, And Craig, we we've guided. that got not here

time. position we're in answer So this a at not to that

David Lougee

lot a had large reverse subs of we obviously, know, and deal. comp you As a up

going So the on comment to, negotiations we're that. on middle of not anything in

Operator

Instructions]. [Operator

Barrington the Our next of with question James from line comes Goss Research.

James Goss

Okay.

in Sorry One, economics Obviously, is about a how lines. be cable wanted if to more about of you types about risk outlets you satellite I offset you're implications. between viewing streaming and various that wondering that this YouTube, things used will I'm of platform. a to could last thing. some or and the Roku apps. wonder a with couple economic are talk how terms traditional there little I those the of of way ask to along about things. try the the the to great developing different

David Lougee

-- it we James, our of right? our any own major any without of say, comes off apps our and Let's a third-party usage lot to varies, platform. Because own

really on if it's X it And those look varies share. obviously platform own, very then on different deals them. the based it's our So

Some for in of get them don't we them love short we distribution feel term long But the the good about, on for term. we of go some out there. to it

incremental then you've cost out, And we to -- I cost time. over relative it's anything XXXX. bigger play, is us. good it pretty that opportunity I the think But anything much into not I question even get until we existing will over signaling it's point think are big. I'm our scale marginal Some them all over programming you of But -- done to as And big will operations. a for for not become and frankly, asked. and look -- for think opportunities baked time, we've the we'll a be

a it's win-win. So

James Goss

able get slabs you're any can with other with of that level DBL. the couple you And at gaining effort? about it's consistency country. things. there you're economic XX% A It's Okay. of the traction increased that of to particular time talk Is the applying? One

David Lougee

you just that part last again? I'm up, say sorry, broke could Jim, you

James Goss

gaining of traction you as consistency Yes. increased you DBL your in the with are what The talk typically of other into put distributing country. broadcasters. the and deal with the that -- that Can economics And XX% terms gets slots to about value the time of service.

David Lougee

time. distribution then take we that Jim, gets last monetize can value that I of mean, and eyeballs what which mostly, us the we is over first, value we the we audience as part distribution

slots, It time on right of They afternoon the makeup across based exclusively a varies the that that to of relates the station. in almost it strength they're now time as slot. market, lot markets. vary So

wouldn't time any period. say I one So

every know, do we line well. than don't time off a that much additional for rate. all lower it's I fixed We -- is model lower stories a we produced time think pretty model on if us because like gravy But a in in Hollywood. us. some every And of where it's have distribution great that bottom did places there's in period. Denver in a for success as we expense is run And cost much period, you as

it's for a haven't a in good been it thing So play us, that's great a for but giving. on it's just we about keep us talked recent years, continued and lot to

James Goss

how not about additional mandate thing the X.X. inclusion. they and are has of wondering last I'm do fit incurred enthused could have you broadcasters TV are might terms seem ATSC One the think And competing to talked have so sellers products TEGNA. that in costs. Even with I of enthused expectations Okay. they how it may not what looking the And in though at might about FCC it, a just your with seem particular, you, maybe in want pretty because lot the

David Lougee

relative in say. people be near-term speak the opportunistically what not in to into platform. were from in a business it a to technical we models for one much in any very would for look a fathers, what because we're American with the I've the frankly, too and why I that. standpoint, us perspective, Jim, like the we good industry. near founding of iPhone for I and a Pearl. consistent model talking word, our continue But about that much stayed term not as I important Yes, we up I pure the believers said it. the that board of as think speak ourselves what frankly, to new that will, people said looked is bit business or we at from work that. past, been would be standard can't say a we But they enthusiastic if that putting economics. believe And But to we it's to The very of think consortium true points our to we're We've have has terms to close a, bit made accessible mean strategic if I perspective, from I before, on do at simply you options,

still that as -- any with just So made iPhone. that think the the And as time. who I can't other third the ATSC happen X X.X time, well, can don't thing over it I'm a the of if in you lot wrote money financial at see and programs on horizon off as that iPhone applications platform, near-term we a bullish put parties stock that just the TEGNA ATSC but like of this we

James Goss

Do -- to worthwhile. TV think agree it a will it you or will as Or mandate rather FCC eventually done? the the will way makers do the eventually to think get you it's have broadcasters

David Lougee

the I would be, of to pretty done this TEGNA going have think opine date. I'll I'm and would say broadcasters FCC until I FCC, but on -- that a done voluntarily transitions getting job that given the year, I simply good say not leave

stations We how But future to it relative public be manufacturers the the out and have to more seen we're policy. I remains plays transitioning. think

good a question. it's think I

Operator

comes Our next of Huber Huber Craig Partners. question line with the Research from

Craig Huber

of guys. couple A follow-ups,

significantly that sequentially like saw mentioned you in But are XQ the in quarter. particular. You categories maybe quarter you there the the what in are versus quarter categories, curious third trends current than you saw better National also what improving in could here. touch quarter I'm third on this ad doing any

Victoria Harker

Yes.

double in what on did Craig, particular, you asked. say you just let -- national, check me just So

Craig Huber

so quarter. Yes. far quarter Yes, materially are categories her than third you what versus like this what I doing better saw what

David Lougee

think those up. the are bottom certainly looked of and think variances similar, I Craig. major I trends don't We third I'm yesterday. those any seen to fourth, the at pretty in performers speak not the performance with line

Craig Huber

given have materially that guys revenues lead-in Great. ad you've just you I'm Okay. curious two all the on still at impact the there in any ones question, here. strikes so ongoing Hollywood other there seen My far? your that late-night your is news,

David Lougee

lead Craig. sort into few good news with ago shifting. the question, years went the because scripted that time of a late really, No, as a drama -- away Good

total our very have a standpoint, there's been a Prime So piece economics really worlds. Network not company revenue. on. two is our lead-in of And based for small

and that's the majority West the that's Coast, a what years XX, the been been the to over of revenue last On companies is XX:XX period, number probably eaten XX:XX affected the majority been gradually where are time not other that of an probably East that's of our where news sort away and some XX. big news XX might years, ago over X ago, have stations accelerate in XX last

Rocky those of that's the in think model, news cetera. and Minneapolis in in in period, markets all people are time the basically, by and zones Mountains, awake. our XX:XX in Midwest that's cast the I up not Louis not Rocky et and think, Denver, So our are and our Central XX:XX timeshares Texas and Saint Those Phoenix affected in and in

strong, linear be scripted show may fashion, a news get not where a ratings. though or we watched may in our even is So good still

no no, there's trend that. to there So relative really

as XX:XX the, put to time even if don't I the generally shows speaking, with be event, more specific in like a people going more reality/event So it that of West, shifting much will call is period in X:XX the have getting like an voice that's sports any years se. time reruns in does, but strike, the call that think And to East on linear programming about on dancing susceptible the hallmark works think question broadcast. specific also I to around which period and continues event-type and type are the to per really scripted stars, effect also I a it, less better over or to networks more in that's programming, about think it, won't program the Central talk innovative your the time to the us watch

Craig Huber

is And ad into this network of question, prime that year? percent my coming time, of revenue what your maybe final

David Lougee

on Hold on that.

Victoria Harker

Craig, in low the for X%, revenue talking percent. would teens about if total advertising, the Prime-time just is be you're it company,

Operator

for That to the like call concludes to today's remarks. closing I'd Lougee question-and-answer Dave session. turn back

David Lougee

we as note here. And one final close

quarter, we Victoria be into will CFO, will last As and years Julie stepping seat after preparation. be down of year's indicated stepping that end as

to TEGNA While and for call years. through her she's and our for this at us, the will thank helping will spring be and year our over year be many all last the opportunity with of earnings to CFO of next will with be this done end shareholders I transition through many, the Victoria want take is here public

Victoria Harker

almost momentous support calls am me, my XX particular, earnings but been finance team, the This the later around Thank pleasure you, years, occasion and it's serve very, in Julie a for the career. TEGNA, team. XX Dave. I to proud from be And of confident I'll but my and for And is very rest the and over stands. of clapping

David Lougee

everyone. the Thanks, XXX-XXXX. questions, in, you reach please and Victoria. Julie have at us taking to With join today listening thanks, to if everyone, Thanks, (XXX) out for additional time that,

Operator

today's concludes Thank This conference call. you for participating.

You now may disconnect.

TEGNA (TGNA) 7 Nov 232023 Q3 Earnings call transcript