TEGNA Inc. Reports $3.1 Billion Revenue for Fiscal Year 2024, Driven by Political Advertising Growth

TEGNA Inc. reported a total revenue of $3.1 billion for the fiscal year ending December 31, 2024, marking a 7% increase from $2.91 billion in 2023. This growth was primarily driven by a significant rise in political advertising revenue, which surged to $373.2 million from $45.8 million in the previous year, reflecting the impact of the even-year political cycle. However, the company experienced declines in subscription revenue and advertising and marketing services (AMS) revenue, which fell by 5% each, totaling $1.46 billion and $1.23 billion, respectively. The overall increase in revenue was partially offset by a decrease in subscription revenue due to subscriber losses, although contractual rate increases under retransmission agreements provided some mitigation.

Operating income for TEGNA increased to $784.8 million in 2024, up from $733.5 million in 2023, driven largely by the increase in political revenue. Adjusted operating income, a non-GAAP measure, rose by 30% to $817.9 million, reflecting the same revenue dynamics. The company’s net income attributable to TEGNA Inc. was $599.0 million, or $3.53 per diluted share, compared to $476.7 million, or $2.28 per diluted share, in the prior year. The increase in earnings per share was supported by share repurchases totaling 18.6 million shares in 2024, which reduced the weighted average number of diluted shares outstanding.

In terms of strategic developments, TEGNA completed the acquisition of Octillion Media in January 2024 for $56 million, enhancing its capabilities in the local connected TV advertising market. The acquisition included an earnout provision that could add up to $14 million based on performance milestones. Additionally, TEGNA's Board of Directors approved a capital allocation framework that aims to return 40-60% of free cash flow to shareholders through dividends and share repurchases, while also allowing for organic investments and potential acquisitions.

Operationally, TEGNA reported a cash and cash equivalents balance of $693.2 million as of December 31, 2024, up from $361.0 million in 2023. The company generated $685.0 million in cash flow from operating activities, an increase from $587.2 million in the previous year, driven by higher revenues despite declines in certain segments. TEGNA's total assets increased to $7.33 billion, with goodwill rising to $3.02 billion, reflecting the acquisition of Octillion Media. The company also maintained a strong liquidity position, with unused borrowing capacity of $738.2 million under its revolving credit facility.

Looking ahead, TEGNA anticipates continued revenue growth driven by political advertising cycles and strategic investments in digital and connected TV platforms. The company remains focused on enhancing its operational efficiency and expanding its market presence while navigating challenges in the subscription and advertising markets. TEGNA's management expressed confidence in maintaining compliance with debt covenants and sustaining its financial health through effective capital management strategies.