Tegna reported a big jump in profit compared to a year ago, when the pandemic ravaged the advertising market.
Net income was $106.6 million, or 48 cents a share, up from $19.9 million, or 9 cents, a year ago.
Revenue rose 27% to $733 million. Companies are comparing their 2021 results to their pre-COVID 2019 stats. For Tegna, revenue is up 37% from the second quarter of 2019, because of higher subscription revenue and acquisitions.
Subscription revenue was $375 million in the second quarter, up 16% from a year ago. The company said full-year subscription revenue is on track to grow in the mid- to high-teens.
Advertising and marketing services (AMS) revenue was up 49% to $341 million. Excluding autos, AMS was up mid-single digits compared to 2Q of 2019.
The company said it expects strong subscription revenue and a continued recovering of the advertising market. It sees revenue rising by low-single digits in the third quarter.
“Tegna’s consistent execution of our long-term strategy resulted in another quarter of record performance, supported by the underlying strength of our subscription business, growing and accelerating advertising and marketing services revenue, as well as our disciplined expense management,” said CEO Dave Lougee.
“AMS sales are accelerating each week and we expect the third quarter to finish significantly stronger,” Lougee said. “Premion also continues to accelerate and remains on track to grow 45% to 50% compared to 2020. This industry-leading OTT advertising platform is fueled by a local salesforce that now extends to almost 75% of households across the U.S., augmenting how Tegna serves the growing and evolving needs of local and regional advertisers."
Jon has been business editor of Broadcasting + Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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