Investor ESG Presentation
May 2021
Forward-Looking Statements
Certain statements in this communication may constitute "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are subject to a number of risks, trends and uncertainties that could cause actual results or company actions to differ materially from what is expressed or implied by these statements, including risks relating to the coronavirus (COVID-19) pandemic and its effect on our revenues, particularly our non-political advertising revenues. Potential regulatory actions, changes in consumer behaviors and impacts on and modifications to TEGNA's operations and business relating thereto and TEGNA's ability to execute on its standalone plan can also cause actual results to differ materially. Other economic, competitive, governmental, technological and other factors and risks that may affect TEGNA's operations or financial results are discussed in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statements in this presentation should be evaluated in light of these important risk factors.
2
Company Overview
TEGNA is an independent media company providing empowering stories, impactful investigations
and integrated marketing services through trusted and innovative content across platforms
$4.2B
Market Cap1
$3.0B
Revenues1
$1.0B
Adj. EBITDA1,2
64
Stations
51
Markets
+14%
Unduplicated Average
Monthly Visitors 3
+39% | +24% | Largest |
Monthly | Total Video Plays5 | owner of Big 4 |
Active Users4 | affiliates in | |
the top 25 | ||
markets6 |
Largest
affiliate group7
NBC | 2nd Largest |
CBS | |
ABC | |
FOX |
OTHER8
affiliate group7
- Market Cap as of March 31, 2021; Revenues and Adj. EBITDA as of March 31, 2021
- See Non-GAAP Reconciliation on slide 28.
- Compared to Q4 2020; source: ComScore
- Compared to Q4 2020; source: Google Analytics, Campaign Monitor
5 Compared to Q4 2020; source: Google Analytics, YouTube Analytics
6 Based on TV homes reached, excluding O&Os. | 3 | |
7 | Across all markets; based on number of TV homes reached, excluding O&Os. | |
8 | CW, MyNetwork, Independent and Radio |
TEGNA's Business Strategy Drives Long-Term Value
Five Key Pillars of Value Creation
Continue to be best in class
operator
Aggressive yet disciplined pursuit of accretive M&A opportunities, including adjacent businesses and technologies
Pursuing growth opportunities through organic innovation such as Premion, our best-in-class OTT advertising service
Maintaining a strong balance
sheet
Commitment to free cash flow generation and a balanced capital allocation process
Superior Execution
- 50%+ of recurring, highly profitable revenues from subscription and political in 2019/2020 cycle and an increasingly larger percentage going forward
- Subscription revenue expected to grow by mid-to-high teens percent YoY in 2021, with net subscription profits expected to grow by mid-to-high twenties
- Record first quarter revenue, net income and Adjusted EBITDA driven by record first quarter advertising and marketing services revenues and subscription revenues
- 16 stations acquired representing $1.8B of transaction value since becoming a pure-play in 20171
- Acquired stations have been accretive to FCF and EPS, successfully integrated with synergies achieved ahead of schedule and strategically located in high-spend political battleground states
- Well-positionedin the event of changes to the regulatory environment
- Recent acquisitions and partnerships (i.e., Locked On and FreeWheel) expanded our audience, customer base and technical capabilities
- Full-year2021 Premion revenues accelerating with growth now expected to be up between 45 and 50 percent above 2020
- Capitalizing on growth of OTA television audiences through True Crime Network (formerly known as Justice Network), Quest and Twist (launched in April 2021) multicast networks
- Interactive TV / digital series and audience engagement tool
- Reduced net leverage to 3.82x as of Q1 2021 and expect to further reduce it to low 3x by the end of 2021
- $1.5B revolver extended through 2024 increases capital flexibility
- Executed nearly $1.6B in refinancings in 2020 to lower interest expense and extend maturities
- Thoughtful, balanced capital allocation philosophy to maximize shareholder returns
- Stable, consistent dividend; recently announced we will increase our dividend by 36% beginning July 1st
- Recently approved a 3-year, $300M share repurchase authorization
1 Includes all material acquisitions since becoming a pure-play in 2017, totaling $1.8B in value - KFMB's San Diego
stations, Toledo/Midland-Odessa, True Crime/Quest, Dispatch, and Nexstar/Tribune divestitures | 4 |
Consistent Execution of our Strategy has Driven Growth and Diversification
Increasing mix of high margin subscription and political revenues allows us to continue to deliver
value to shareholders, regardless of cyclical or economic conditions
Shift in TEGNA Revenue Composition
2016 | 2020 | |
Subscription | |||||
44% | |||||
Advertising & | Subscription | ||||
29% | |||||
Marketing (1) | (1) | ||||
62% | |||||
Advertising | |||||
& Marketing | |||||
40% | |||||
Political | Political | ||||
8% | Other | 15% | |||
Other | (2) | ||||
1% | 1% |
We expect high-margin subscription and political revenues to continue to account for a growing portion of two-year revenues
- Advertising & Marketing Services: Advertising (Excluding Political) + Digital revenue
- Includes "Other" and "Cofactor"
Subscription Revenue | Political Revenue | ||
Full-year 2020 subscription revenue up 28% | Political revenues contributed a record | ||
year-over-year, exceeding pre-COVID guidance | ~$446 million for the full year | ||
$1,287M | $446M | ||||||||||
$1,005M | |||||||||||
$719M | $841M | ||||||||||
$234M | |||||||||||
$155M | |||||||||||
2017 | 2018 | 2019 | 2020 | 2016 | 2018 | 2020 | ||||||
High margin and predictable | Positioned to capture even-year | |||||||||||
revenue stream | political spending in future years | |||||||||||
TEGNA's even- to odd-year results are comparatively impacted by the cyclical driver of
spending related to political advertising in election years
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Tegna Inc. published this content on 10 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2021 13:27:00 UTC.