Tegna: Embracing Change Key to Growth

With the spin-off of cars.com and CEO Gracia Martore’s retirement just weeks away, Tegna execs told investors in New York Wednesday that the company’s strategy moving forward will have four key components—embracing change, advancing a multiplatform ecosystem, leveraging scale and creating new revenue streams.

“Tegna is a world-class media company well positioned to accelerate growth,” said Tegna Media president Dave Lougee, who will replace Martore as president and CEO of the larger company after the May 31 spin-off. “Our intense focus on innovation, combined with significant scale and best-in-class operational execution, allows us to capture the opportunities we see in this dynamic and evolving industry. In addition, our leading position presents significant opportunities for us to be an active participant in the consolidation we expect as a result of regulatory changes.”

In summing up its growth strategy, Tegna said its plan surrounds four pillars closely aligned with the evolution of the media and broadcast industry. They are:

  • Embracing industry change, growing market share and expanding the markets Tegna is targeting.
  • Accelerating the growth and monetization of Tegna’s multiplatform business, allowing advertisers to reach viewers across platforms.
  • Leveraging scale, local content and programming to grow subscriber revenues across traditional and OTT distribution channels.
  • Diversifying revenue streams through continued investment in new and innovative business models that leverage the group’s assets and scale.

Tegna also provided financial projections for the year ahead, during which Tegna will continue to “assess strategic alternatives” for the job site it owns, CareerBuilder.

Projections call for Tegna over the next two years on a pro forma basis excluding Cars.com and CareerBuilder to achieve:

  • Revenue growth of low to mid-single digits in 2017 and low to mid-teens in 2018
  • EBITDA margins between 35% and 37% in 2017 and between 39% and 42% in 2018

Including CareerBuilder and excluding Cars.com, 2017 total company revenues, on a pro forma basis, are expected to remain in line with 2016 revenues of $2.7 billion, the company said.