• Revenue: Full-year revenue decreased by 11% year-over-year to $2.9 billion.

• Net Income: GAAP net income for the year stood at $476 million, with non-GAAP net income at $363 million.

• Earnings Per Share: GAAP earnings per diluted share were $2.28, while non-GAAP earnings per diluted share were $1.74.

• Adjusted EBITDA: Total company Adjusted EBITDA saw a 34% decrease year-over-year to $742 million.

• Free Cash Flow: Free cash flow for the quarter was $130 million, with a two-year trailing percentage of revenue at 20.3%.

• Capital Allocation: Plans to return 40-60% of 2024-2025 free cash flow to shareholders, with a $650 million share repurchase authorization.

• Strategic Moves: Sale of BMI interest and acquisition of Octillion Media highlight strategic initiatives.

• Warning! GuruFocus has detected 4 Warning Sign with TGNA.

On February 29, 2024, Tegna Inc (NYSE:TGNA) released its 8-K filing, detailing its financial performance for the fourth quarter and full-year 2023. The media company, which operates 64 television stations and 2 radio stations across 51 U.S. markets, faced a challenging year with total company revenue declining by 11% to $2.9 billion, primarily due to the expected reduction in political revenue from the mid-term election cycle. Despite this, Tegna Inc managed to meet or exceed all full-year 2023 guidance metrics and provided a positive outlook for the 2024-2025 period.

Tegna Inc's subscription revenue was $1.5 billion, consistent with the previous year, while Advertising and Marketing Services (AMS) revenue was $1.3 billion, down 5% year-over-year. The company attributed the AMS decline to macroeconomic headwinds and the loss of a national Premion account. However, underlying advertising trends, excluding these factors, were down only 2% year-over-year, with automotive and services categories showing strength.

Operating expenses on a GAAP basis were down 5% to $2.2 billion, while non-GAAP operating expenses saw a slight increase of 1% due to higher programming costs, partially offset by lower non-programming expenses. Net income on a GAAP basis was $476 million, with non-GAAP net income at $363 million. Earnings per diluted share were reported at $2.28 for GAAP and $1.74 for non-GAAP.

Adjusted EBITDA for the full year was $742 million, a 34% decrease from the previous year, reflecting the impact of lower high-margin political and AMS revenues, as well as increased programming costs. Free cash flow for the quarter was reported at $130 million, contributing to a two-year trailing free cash flow as a percentage of revenue of 20.3%.