TEGNA Inc. Reports 5% Revenue Decline and 69% Drop in Net Income for Q1 2025

TEGNA Inc. reported a decline in financial performance for the first quarter of 2025, with revenues totaling $680.0 million, a decrease of 5% from $714.3 million in the same period of 2024. The company's net income also fell significantly, dropping 69% to $58.3 million, or $0.36 per diluted share, compared to $189.3 million, or $1.06 per diluted share, in the prior year. The decrease in revenue was primarily attributed to a substantial decline in political advertising revenue, which fell 87% to $3.6 million, consistent with the cyclical nature of political spending in odd-numbered years.

Operating expenses for TEGNA increased slightly to $571.0 million, up from $576.7 million in the previous year, driven by a rise in programming costs associated with sports rights deals. However, the company managed to reduce selling, general, and administrative expenses by 7% to $95.5 million, reflecting ongoing cost-cutting initiatives. The overall operating income decreased by 21% to $109.0 million, influenced by the drop in political and advertising revenues.

In terms of strategic developments, TEGNA continues to focus on its core operations, which include 64 television stations and two radio stations across 51 markets, reaching over 100 million people monthly. The company has also been active in managing its capital structure, with a share repurchase program authorized for up to $650 million, of which $375.2 million remains available as of March 31, 2025. Notably, TEGNA did not repurchase any shares during the first quarter of 2025, contrasting with $82.4 million spent on share repurchases in the same period of 2024.

Operationally, TEGNA reported a decrease in cash flow from operating activities, which totaled $59.6 million compared to $100.4 million in the prior year. This decline was primarily due to increased cash payments for income taxes and a decrease in income before taxes. The company ended the quarter with cash and cash equivalents of $716.6 million and total debt of $3.1 billion, maintaining compliance with all covenants in its debt agreements.

Looking ahead, TEGNA anticipates continued challenges in the advertising market, particularly in political advertising, which is expected to rebound in the upcoming election cycles. The company remains committed to returning a significant portion of its adjusted free cash flow to shareholders while also investing in organic growth and potential acquisitions. TEGNA's management expressed confidence in the company's ability to navigate market conditions and maintain financial stability in the coming quarters.