TEGNA (TGNA) 10 May 212021 Q1 Earnings call transcript

Good day, and welcome to the First Quarter 2021 TEGNA Earnings Conference Call. This call is being recorded.

Our speakers for today will be Dave Lougee, President and Chief Executive Officer; and Victoria Harker, Chief Financial Officer. At this time, I would like to turn the call over to Doug Kuckelman, Head of Investor Relations. Please go ahead.

morning, quarter to webcast. XXXX good to -- and first our earnings you, and all welcome welcome Thank call and our financial Dave Harker; CEO, President our Today, Victoria CFO, Lougee; will and performance and TEGNA's results. review and call After questions. for that, open will we the an you've had morning's release. to opportunity Hopefully, this review press

a have seen the it's copy you If yet available release, of not at tegna.com.

includes call that includes financial press results I'd to of the that differ directly in this This certain presentation Dave. cause provided and the webcast GAAP Before have comparable may to you and conference actual our release. reconciliations With Factors remind also we measures forward-looking like most get are over and to non-GAAP to our may the measures, that, in started, we let measures them those SEC differ. statements, turn me call outlined filings.

you, Thank good everyone. Doug, and morning,

and free our and paydown subscription progress our second the record record of making year. which EBITDA, and provide remainder expect strongest the broadcasting Doug marketing call, will becoming on a growth And revenues, achieved an mentioned, flows. company. record quarter, revenues, all look services revenue, growing while adjusted record forward to first and we income net our I continued cash we debt the pure-play We of as Victoria quarter record overview was quarter and in since total today's during advertising first As TEGNA's performance

as our over-the-top advertising out as with with including Victoria higher year, regional our market provide Premion, Growth projection on you continued to and advertising, to updating both has growth driven offerings more from we're and to shortly. the further local individual advertising advertisers. services categories such the across this traditional of of As revenues marketing advertisers. expectation were and and up release full our that quarter our than year needs was expand XXXX, more Premion acceleration X.X% continued close year-over-year. saw XX% with best performance in of will now will to advertising well platform during today, digital color new serve for expansion as XXXX. first innovative the With markets evolve our Premion XX%

also Our exceptional Premion's partnership local with Gray our Gray's drive by and expanding sales already is leveraging helping growth footprint footprint.

year-over-year most down revenues big now to subtrends clear which beyond. to improvement cover by of than to TEGNA closer supported the were seen this which Subscription XX% of multiyear we to quarter increases grow XX and the expectation year, profits supported up reached continued toward less and not agreements, XX affiliation revenues, and step-ups The been first comprehensive end reprice in this the net as percent and high we of have combination is affiliation agreements, to X to future reminder, with XXXX of XX% rate subs an mid- strong XX markets. our are our markets grow through the network nationwide, XXXX. month. approximately have visibility we of quarter earlier NBC multiyear the a In for a Turning this now XXXX, of in subscription XX% We additional X% including subscribers levels and through of teens year, our supporting recent top NBC since subscription XXs agreement growth. NBC for on XXXX. end the And a expenses record, have XX% trends year our repriced will into mid- year. this our retrans this renewal the contractual in track improving subscriber X% high to has It percent in multiyear

leverage to the from updates to continue X distinct growth streaming Turning content to strategic and TEGNA in quarter. ways. positioned is

First, and with on platforms. our marketing our than engaged can streaming More reached streamed our participated expanding NewFronts content week, through news watching noted have Premion, Premion, X,XXX to to, those information, it continue our demand through stream we people of -- advertisers and and I session IAB's solutions, audience ad through including large will entertainment on people by showcase NewFronts and the who Last agencies. digital live to second, a on and including be the seen which tegna.com/newfronts. first side; as ever IAB

presentation, our throughout for consumer and understand clients behavior automotive we help During capabilities them tourism buying to attribution announced the new cycle.

metrics TV visits. outcome such For connects and as streaming-viewing with but those habits it brick-and-mortar visits, TEGNA website with also store unfamiliar attribution,

Now, will to car their for new traffic are Premion, see dealership example, dollars foot to able their sales. car dealers. and driving be bringing Advertising how and through media TEGNA

app addition during The in platforms. we're is This the on new the TV. all stations rollout for second with leveraging through way quarter. distributing our our Fire Amazon of across In content streaming inked is on stations growth to deal Fire news we of for the quarter, TV distribution OTT provide news to on-demand Amazon's apps completing a all our

Locked daily is saw opportunities the to part began we expanding podcast of also as sports On's that of one We which OTT acquisition. platforms,

national properties the information with our false helping past our of VERIFY to our later stand-alone video stations between want We've On question building also and research Music. Studios will years. on sources for brand, podcast we've And journalists. the credible we VAULT OTT launched available content year. entire that we debuted week, with has of last text Amazon on partnership expanded Specifically, VERIFY talented can submit dedicated this is a app distinguish that claims launch they any Locked true through on Consumers verified. catalog podcasts Locked station Amazon checking are some OTT fact and the public the through growth now by substantial few of our to now VAULT story on announced also many On's local now VERIFY VERIFY content simulcast available apps. over our

this the this use would finance level debt, take. will last capital we to July, at we to full here we Again, temporarily we Board's a and percentage than guidance, said We've to for ability ratio, leverage leverage at environment, said the Turning to now with provides returning as value capital reach XX% well our closely shareholders. our value free to shares an we increase back actions the which as a basis quarter a increased it's year. announced full to And performance is as XX%. provides cash Last the to this year below the market XXXX lower current which toward deliver given to before, where Xx, when ending the appropriate. time a with have progress cash made communicated were of most authorization and quarter year-end low us most the delivered communicated second also creating acquisitions. we've turn we our of TEGNA's allocation X-year dividend, continue our which we million was including We've continued option followed in our these expect us growing appropriate actions. net we return quarterly which determine flows, of XXXX that our $XXX year, through capital share supports buy shareholders top of recently program, evaluate on our one to X.XXx. end business repurchase reflected begins capital to on strong our following eye X-year of our to updated XX% allocation, our where considerable that the flywheel expectations XXXX year expected pay almost revenues recently on we've flow priorities to XXXX, This to a down

$XX and remained through well discuss We're the management will in drive on On before this COVID-XX, million recurring the of pandemic. efficiencies expense containment in still savings management track detail side, expense the to efficiency established will diligent of initiatives Victoria increased efforts we of generate beginning year careful our cost the to we'd on savings initiatives. up cost more shortly. expanding execution have annualized continue and since

sources to part reflects racing already regional and their the with career DE&I grow Awards actions a continued coverage the Board in leaders audits. actions this and Diversity, staff to this development developed to During in a kind, and news, in marketing commitment taken of broader storytelling to we and management that the notably, the in This and on steps organization. top call ensure install have an provided and team, program our leadership year, to key Poynter in of TEGNA at our TEGNA for for XXXX. fourth support and focus digital end bias at with Thursday, Institute, a mind, priority training we leading Equity, TEGNA. are award in it, equality. program of Excellence journalism year, in our diverse also reporting, that is TEGNA. that year, X culture address our inaugural throughout All will. of both Murrow this everyone communities geared serve earnings unconscious to nonprofit you the taking With by and at our update inclusion workforce and and equity currently year take in training quarter received and some recognition and And here we've news at need partnership through and Many earlier receives Edward first an diversity, its they remains of employees inclusive last third-party specifically inclusive our I year, the further Inclusion. last newsroom and program journalism around content R. of have the

year We inclusivity progress also this accountable to for across TEGNA. the beginning us forward took of hold action at making on

goals overall reminder, indigenous measurable of management. content X-year color news black, people we teams, established leadership in have representation a and increase specific As and company to

additional goals accountability as well our DNI find and in responsibility can highlights as and our You broader efforts on website. information social these

of news important, our over our to turn for cover I to moment to Victoria results our -- to a in country. I thank take call viewers detail, want deliver markets local all the journalists and Before more continuing thank to impactful across in to colleagues financial the

important the critical for tolerant informed and convening systemic call facilitating and Victoria. markets, we turn injustice nation more across in inequality local every helping and a every making we As deliver dedication. other and are the making over communities. this I'll journalists race, each play them more our of in in role to and around on discussions again communities day now TEGNA us thank them their way, role

thank morning, Thanks, and you everyone, for us. Dave. joining Good

first discussed, As best past quarter quarter XXXX. this broadcast since our Dave a pure-play becoming was in company

business record on not all performance but focus X model, of TEGNA's of plan. our our pillars only the Our strategic strength on reflects execution

increase has us current synergies dividend future M&A our organic capitalize thoughtful announced well on delivering of strategy recently That while you've our from served also in ranging same positioning our As as on has allocation, growing seen, while to strong capital ongoing as balance strengthen to our stations, of aspects approach resulted sheet value. portfolio disciplined a other to well investments, growth. shareholder

financial turning results. the first Now quarter to consolidated

As as our business operational non-GAAP my as today reminder, with on primarily a basis results. drivers visibility performance financial into of comments consolidated on the you to provide a are TEGNA's focused our trends well

You'll press of and release. all period our our data reported in our find comparatives prior

on in you As release, year while reaffirming guidance. guidance quarter key second financial XXXX saw morning's full our this metrics, we provided

all In later added shared on XX% on our operational the touch remarks. We've for up basis projections. and also I'll expectation on XXXX. on my a full XX% to categories of XX% over detail Premion of year and addition, revenues be drivers in we've our our outlook these more between

of quarter, revenues was despite the advertising political record XXXX, as up and first acquisitions. the record quarter the of driven revenue our marketing total as quarter to revenue up Total well by were by compared $XX first services quarter revenues of first year-over-year, being year impact up against XX% subscription X% also million. driven last first For company

additional stream some revenue on details drivers. growth, terms of In here are

reflecting mid-X% it's referenced subscribers, the of in continued since trends XX% of reporting, revenue year-over-year which subscriber down decline retransmission year. Big with of remarks, strong the the rate in his improve increased last XXXX, XX% below in approximately with quarter, most been Dave fourth recent rates quarter Four this best As XXXX. to year-over-year Subscription have of February, repriced the month

continue we flows in As of and the the net well in beyond revenues, high-margin of performance, forecast profit footprint, too. mid- subscription a provides a strong political growth well growth combined these high trend our in strength forecasted positive as EBITDA growth into subscription expansive with clear free our of This XXXX cash future. XXs that, result us annuity-like rates, as as subscriber with trends well as and well the to to view

services marketing quarter. and which Now a turning to revenues, advertising produced record first

compared As first our full above last as first support XXXX quarter forma. you serve pro and of guidance. our year. also finished revenues year quarter AMS first the second growth up quarter X.X% know, notably, And AMS key to was AMS of a driver quarter XXXX to the

year-over-year growth both traditional well Premion. AMS including quarter was First by revenues, as as driven advertising digital

vaccination see on to were entertainment, in in in with first quarter, specific categories strong recovery last ongoing performance we education. last with continue color of nonpolitical in over continuing digits up balance increasing We to To our country, ad the which to advertising struggle over banking and of year. most forward double Automotive, and digital largest levels these year. and retail, and given impacts packaged home surprisingly, goods both travel the low audience services, improve auto, including continue to relative many further where traditional look some the up care, categories categories That restaurants, the to provide platforms. finance, COVID. Not categories, advertising significantly, improvement, year, the said, insurance, health gambling, advertising category across improved tourism, metrics categories

to pacing in particularly businesses quarter That the said, across digits pro and second low pace last positive with up the quarter a advertising year challenged second forma. quarter well, being to all quarter these of significantly In AMS down improvement XXXX, categories positive the relative to XXXX with addition shut country. we pandemic trends, year-over-year. In quarter is second second continuing AMS up expect be advertising first as to single was given

the first and were costs, in to operating Operating Operating in X% Turning continue as for year-over-year the revenues programming Non-GAAP including programming X% down fully such year-over-year expenses, now higher first by reverse associated Premion, the expenses we X% expenses, growth up operating with drive programming less the $XXX areas up were compared quarter less less million, last Premion. despite quarter. efficiencies than expenses year, to driven higher across quarter. were compensation as subscription continued to company. further investments fees,

initiatives, on color Now which management Dave earlier. more provide to on cost specific the touched

Our expenditures the included long-term discretionary capital order the business. to nonessential of expense pandemic early days course, of costs in savings in of during all the reducing protect and XXXX, health our

then. to important had were our these in to streamlining of cost it's which we and begun However, processes efforts, well ongoing measures addition company-wide the before highlight reduction

leverage. as culture and control; across focus upgrades investment center, As TEGNA integration decision time cost calls, the to underway sales these digital reallocate Premion. video further management have sales in-house; organization, the thoughtful efforts discussed products from these known master been in Examples our including some prior growth national our for part like of our media to centralized on operational of include: of through of Team commoditized as successful our bringing in also strategic away to paid a streaming One portfolio, efficiencies and

than gained, and year produce we've these quarters EBITDA reductions, XXXX will expense earlier permanent strong flow coupled conversion a had free with investments, rate we we've our run for of several already annual target result These million to growth margins expense cash revenue come. and this $XX years efficiencies As achieved planned.

result of we a excluding achieved a a $XXX first XX% full of margin EBITDA drivers, record this representing all quarter As margin, of adjusted quarter year Premion. million, XX% and these

first and and year-over-year for Premion's first up As Adjusted I'd revenues strong AMS all on balance are these as we cost quarter the efforts liquidity. contributed share. XXXX. as intentionally to ongoing to take quarter growth quarter. investing subscription up now X% market discussed, sheet EBITDA to compared in to savings well was touch we results these previously and like XX% Record

balance strengthen the further previously mentioned, we've proactive pandemic. sheet of As series our a taken to even prior steps we to

recall, The capacity September debt as the may million or low $XXX of environment. of XXXX, maturity XXXX, X.XXx senior repay offering XXXX of $XXX historically of successfully notes $X.X over in $XXX we opportunistically XXXX. a used at of refinancing our X as million $X.X at million March remaining you XXXX the our on years X.XXx Total due in of at with The our an notes. remaining completed under as is notes $XXX billion quarter at balance stood of the the end in As callable XXXX the year. our due producing interest remaining borrowing covenant. of revolver this proceeds million of to were only These XXXX notes billion, defined a unused October by the well rate XXst net March stood next par leverage leveraging revolver

on compensation. As stations first headroom allowing our entire Xx leverage to reduction Reflecting calculation. us this financial revolver, of a full the X debt reduced our sheet year and ample February, achieve XXXX, in our quarter leverage accelerated net BB- such in given Obviously, under caps S&P trends. performance of year-end. the this reminder, leverage only covenant including of expected strong while related certain items us affirmed leaves based to EBITDA during calculation financial outlook a by our revising which low of portfolio their credit X-quarter stock-based as at positive, our our rating supported excludes X.Xx operating balance leverage, XXXX, strength to results The strong -- the trailing

to second manage we flow Based year XXXX. X-year driven our and turning first quarter year financial a for by XX% on first improving to flow, cash percentage quarter our quarter flow revenue, strong trends, recently our XXXX sheet. strong our XX% XX% the testament increased of free free our Now generated to revenue of full quarter. XX% balance to advertising results, subscription revenues to and flow. cash model in -- $XXX be the outlook million, continued free We to free ability cash a We've generate of and to to cash carefully record total

XXXX in on high record we cash of XXXX's to modeling, reminder, historically anticipate revenues. million quarter to our a $XXX tax political in payments based the range in relating for As million second results, part $XXX QX, your

provide before and to capital I year Just thoughts a on second outlook. allocation few quarter full turn to closing our

managing disciplined to been and while uncertainty. prioritized down TEGNA our As our of remained and dividend deliver regular true debt, liquidity, during in our to history, to pay continue particularly We quarterly throughout prudent investments period has recent shareholders. and continuing has this capital

Additionally, share the includes years. program, repurchase over $XXX next authorization our which we of recently X renewed an million

dividend announced our recently a beginning July. increase in we that, Beyond XX% in

As cash deployment, our additional capital to including returning we're inorganic generation, Dave opportunities. for flow given to debt capital mentioned, carefully and down continuing while investment evaluate organic analyzing pay options significant any our shareholders, still and

On that performing the true M&A multicast front. Each is associated been with This but synergies the of Crime is free True our and immediately and Network not we EPS accretive months ability the TEGNA's execute our XXXX. complement X related testament to in also opportunities for flow are only very on have realizing Quest and cash we which networks, also and to fully the acquisitions. integrate acquired portfolio XXXX well, The successfully including our stations true in same a integrated synergies to those acquired identify to acquisitions. in to approximately accretive,

and Now an guidance ahead In key year financial guidance. XXXX turning help near-term to I'll forecast provide now second our metrics. results, several to quarter full effort quarter

XXXX be second less As will favorable by comparisons was most impacted significantly expense COVID-XX. Therefore, favorable. year-over-year quarter while revenue of comparisons reminder, a are the

in second with total expense XXXX, compared double We company and subscription quarter high revenue expenses revenue quarter in mid- up programming the driven increased associated subscription revenues, by offset in we increase second operating by forecast revenue. to to both quarter, digits For driven percent, be to partially by higher the low percent year. the growth political AMS expect last to second XXs

majority driven range, to be in Excluding up low is double-digit expenses programming project costs, Premion the by of we growth. which the

for For expect high approximately will on full XXXX The drive we XX% XXXX, end and to XXXX. based in with MVPD be we subscription our trends. free quarter positive based during of proof partners stable be companies, Recall, percent our the well subscribers to revenues future. both and into to to renewing strong collaboratively the growth both also on the and completed mid- revenue year revenue ability of at now our work subscription up teens subscriber fourth flow cash is renewals of

Big beginning after into the XXXX. our agreement of network Dave Four Big affiliation covering year, NBC the As with renewing entered subscribers mentioned, in year XX% relationships visibility at this of affiliate with Four end of we agreements the of clear a place the our strength our through

free We to cash significant the expect months. for growth continue reduction that underway have benefit flow from past in XXXX XX full cost year the initiatives and also been EBITDA

refinancing, Depreciation overview $XX guidance $XX XXXX the to in in $XX to projected the to here's million. $XXX million million our million of expected key million. Corporate Interest be expense, reminder, a range the updated be is full the of elements. range due of the be range million. $XX Amortization As expense expected $XX projected an of to reduced benefit to to $XXX of million. is to million to range $XX is year of to our in is be in

capital expect in nonrecurring approximately million million, well to facility. of $XX a the range of expenditures $XX as to UHF expenditures centralized of includes $XX our mostly to as VHF $XX comprised capital streaming million, be transitions million continuation which of We

expected be XX% XX%. is to of to Our rate in the range tax effective

of beyond other expect deleveraging. net to low Xx, the We end absent in uses XXXX leverage with any capital

you expect that we greater a And provide take your flow, turn and revenue free that, now to color XX%. modeling. XXXX context XX% Q&A for Finally, of with additional cash estimated will percentage XXXX of your Hopefully, we'll the as questions. with to

Dan Company. We'll Instructions] The Kurnos question from first [Operator with Benchmark our take

Strong guide, guys.

because have about the type I And local between up. I'm focused. Dave, that a year-end probably been Just then of wholesale. CTV have and that Meredith's a on a will to guys Premion probably just acquisition more great obviously follow-up. you logos, between rates start intelligent volume, topical be it's expansion of It's doesn't drivers Maybe close rates more -- rate, But thing? assuming a have know I of maybe lately. -- Premion you the rate talk can since if are

couldn't break I up your Premion? very the Dan, last you a very bit question. thing little asked on last X of the What's hear seconds There's phone. about

I transaction just since TV already until won't the covered year? not I not expansion if go to the said, just Gray, the stations, of does include assume Premion Meredith they're that end

calendar relates you year to 'XX, mean? it As

Yes. Yes.

the And everything. participation or multitude what opportunity national we best -- of the really those Because the knew is across thesis in imagine, right. stations a our close the is this categories market off local for years once coming with side, We was But differentiated Gray we a purchased the broad are majority -- is driver But bit right? be it's saw Premion. a local took than news the good stations, that of it's it's competitive have biggest the we and that's driver when OTT so the ago. categories the that always where original they has ad become can a national -- of the that That's standpoint, on serving all once nicely because growth of the frankly it on sales, Local, side. And certainly what right? business of further would you never broader X in of just Gray's little do opportunities from streaming list but on was streaming created growth strategic we the they

on rate volume of continues can those sort services. on of the I to just inventory dependent you factors. answer the number far to just obviously, a standpoint, piece. But of go, you, I As that's up tailwinds tell volume have from don't great a a with and go as use of the rate

right? inventory their going who is inventory got with publishers we've sell. have relationships just to the organically, all So additional we OTT up So

tapping obviously, it. some OEMs category side, in Super sort auto like the to assume your ongoing that might been sounds just like chip at level. results are challenging more Got into out. but -- has it higher have the it's of maybe been there clearly on I for national a sounds maybe of there, the been most inventory. the constraints, comp don't core other I'm and going picking And helpful. be -- markets your up stood -- the the the top-tier And then sort advertising you're It Dave, shortages, supply national the group. peer of of with your

sort over maybe you've what some Why trends successful? been how the you just then so the color of just balance it of So around maybe think And year? seeing? you're

Yes.

point I So -- given issue out pleased supply there are last taking there. first, we're the actually the very issues with real because it, chip chain

X up that right, have and for economically strong it's tougher say in, you're think money large up, I of the the and fact dealers little issues. being for -- local is the bit dealers, supply the X, Houston markets in have and as Arizona, back Floridas in even who X in large that now markets in and is attractive of say, chain issues, right. thesis as terms that because, a world, Tier inventory local chain The which large knowing their much -- current going we're So grab with COVID markets we're -- -- when supply Tier auto, the week right opposed and you're Dallas the better balance will before, right Tier we opened also that Florida good position. your share. I And like so supply, be But to market I is I auto catches to when sheet that Tampa spending -- that the we're more the with and And said think the to held with doing in state money of out. by really reopening. a money they're Georgias But and will they're

well, when they think, it I bodes So solved. get really

it. Got Super helpful.

was us of obviously, remind guide taxes? that guide year Victoria, in the is some Can for cash there's cash housekeeping, tax lumpiness year you what Just the unchanged. terms full

Yes. Yes. pointing to timing just but year remains payments, No, the out relative same. we were of it the cash the tax the

what if remember? you year, for was Which the

we've actually hold effective. we've on think don't -- I the given --

don't Why we get back.

Yes.

Dan. that, on back to get you We'll

offline. get it I'll

We're Quadrani JPMorgan. taking our question next with Alexia from

Alexia. where core could kind those on How seeing the Nexstar but on is maybe generally levels? This was much you operate? performance ad just bit And some then is XXXX, expand relative the larger Dispatch. across of Dave, Or Karnovsky on this ahead I are you this of a and if in is industry? you David kind environment adjusted for you're the auto, more little touched it of wondering markets more for to with of pronounced a TEGNA

Yes.

to second the or Actually, want on again. first I on ask but either a look, a again, second I heard to over phone, apologize, core the why So on 'XX? question, in end trouble David, don't the little to second of you question you end my your ask the ask part I

just that Sure. trying get the to sense where the relative a just to just follow-up and to industry? on TEGNA operates of like strength 'XX, relative to large compares how question a It's core the broader to markets

Yes.

specific numbers core, compared XXXX. So core we on but down don't be to guide would just slightly

note -- core not a think bodes that year reopened the -- these yet, which not be overall the So economy well I economy important it's this actually back on back to ad completely half as yet. the performances this would to is are against appear completely for levels to ad of continues

I are As understand relates year think than it's better and yes, better I questions, to markets last large David, than 'XX. it your it, both -- performing

markets are comp both on a years' large basis, good based comps. on So

streaming. night first, secondly, deals, you XX the now afternoon another some and maybe then with I of maybe available football content Sunday can discuss on be having new broadcast then NFL years? And And games significance the will the on Okay. think

distributors on Just network? either think how wonder positioning thoughts or your change your the potentially TEGNA's if you with shift you that get

Yes. question, I appreciate the David.

think #X be to in going XX you said #X United is content broadcast the the the years. is headline States next that what I the on for

So Twitter games Thursday weekend that I that think not for some industry. little is overall -- on which have the stuff, simulcast, pickup. some is the there previous right? very streaming new, issue entirely got and and headline Night of in the there's been -- Obviously, great years So Yahoo!

Amazon. Night ask the which can You me about moved Thursday has Franchise, to

Night didn't Thursday fine agree great model. affiliates Football of Coast local good was news would because up it never they're and non-East peers my lot because inventory a think took a out I markets on being end that economic all for with

So think for -- is guess didn't the hard same don't reasons, think for I the it. my play I networks

entirely of games stuff having something something Obviously, the in that afternoon of the thrilled The Verizon as that issue Football in although and not think stealing about, networks something been new. and something games have NFL, app the didn't I like. the of we're on is of that been had prioritize. the past So not entirely Amazon simulcast Sunday Night less and a

-- tell So part deal on did And But when this at I something is new. can on of your from our sure is announced, with into not to because is to we that, taken though even the were networks Peacock. it we it account of NBC compensation. the you coming relative had was end reverse year. entirely question, been the That exchange the value it not consideration was

gets we just relationship these like the with it -- do important networks. scale between it networks. have think to why that's economic and so affiliates gets merged And I And it's the the into

next question our from taking Karasyov Vasily with We're Research. Cannonball

I question picture wanted a ask you to Premion. bigger about

So go and so right? has coping and it you're looks very -- what like well. competition expect competition? doing well, Obviously, how So versus that? about the do to, doing you the clearly, how you you the with competition And be Can talk up? would positioned it's it's if to

reason tremendous always just in we and of a Yes. amount good imagine players of be the because lot a a a inventory. Vasily, competition lot to for there's space of

of as the lot the I it XX% third-party of have what's to inventory. right? it's players But of Instead on unique big it, XX, commercial us in XX range, Gray. earlier needed decided like newspaper close we I with did our sell business, to the players, create Yahoo! a are room local, actually of question, national right? our of in marketplace And said having And and local to with We've we an ourself. local -- for local years to where a a sellers, So the piece, display partners Just the ago, like seller business. in partnership America, to lot in this -- focus is there's right? with the is this think is right? it's a got expanding sellers So XX%

less from So a there less be standpoint, local is competition competition. will and

space get sellers But lot protection for It's a big of we've proposition. fraud a and got try there. the of first players to the not -- in a room play having programmatic very terms in our there's of having to were will and where fraud. where pure relative Some security tax defined just to we certified be

the differentiate has we're -- is That -- acquisitions And direct local acquisitions said business the strengthen perhaps space, to we've be and bolt-on relationship that and will very our to We're to so sure we're fast, we forward. like now, how today with competition can that been we're just this looking but to very an always position looking the but looking a proposition -- looking But standing our also always as national market this compelling business don't further be too. advertisers Those help M&A, entirely organic we for and will, and need does us. not position as marketplace. at and we that rebuilt publishers even prior, with in our said, at point in large. pat. strengthen is this moving Technology our having little necessarily

And the who competitors X would top mind you -- are? us like telling X X top to

because it marketplace. the That's on not depends an really question easy

in the you all, their of TV own have the first -- right, have category players, everywhere you So marketplace. cable selling

that space which you've get the a in and and right handful in names more are and are trying heard got the as players probably demand other Silicon it's well. into of others of. larger I'd MVPDs players say You've to the sell-side now, But platforms the Valley, like of local that Hulu some side,

from Steven question next our taking We're Cahall Fargo. Wells with

So some about of we've experience the like any year seeing advertising in what one for increasingly that through And then seen a of reach there? done sales digital we learned process. radio a in beyond if digital comment I or maybe some sort to trends just process? up things wondering with the some getting can process? ad think integrated your of advertising. this you core NewFronts. And the is And bit Was And OTT? is you sticking sales there Premion's opportunity forms ad inventory extend end from first the could other traditional into Was

beneficiary that a think Betting, I Sports has there's been big some Local that of it. been articles

wondering you it then sort think time on bit could noise little go? And you horizon like the just of and a get could So Sports there's medium-term lastly, comment you Betting? How a on up where could of much if that Olympics canceled. Tokyo is

relates as that if were to wondering that's your any if a of you it Just for guidance? happen, material to event annual all

right. a it. lot, Got That's All right. All Steven.

the of a early on IAB don't Actually, NewFronts, have feedback terms yet. of last those in lot So were that week. I

-- I on so that. to And still got complete download a get down

is week. I or I So -- I'd today this can't mean to don't nuance but our give to I -- be know enthused but I about later glad team I'd answer, to fair the a the be response, later have very that offline you

the big core, opportunities able has I being but say the to very been it and to Premion, As what the team can can't do. innovative beginning expand to digital from thinking and will relates about to specifically, we relative I beyond say that to

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in year saw this amount growing fast. this lot I really, in year. The a As a moving day. first report I states changer mean now is aggressive for a -- tremendous topic. is is And that in forward. us Ohio. of standpoint, on before of -- the And the Pretty it And it's for one From a Betting Texas gone opening Local, us. that last the from -- got footprint Sports a -- we to really of relates to good a I states. Texas lot yes, it's quarter game to in our are fairly markets there's is up saw de our minimis most

make in nothing your So if this of is which terms answering blue of in but significant question I already yes, the then, first sure but quarter. category, that sky we I'm growth see Steve,

And just anything on the Olympics?

don't about know. me been Olympics, everything. asked I reading I've you Sorry,

what, might not? is -- You get whether have it canceled I to relative or not your think or question

But to for... it's also immaterial our outlook

going. where I'm That's

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of total not So year, AMS the probably the happens. much, and X% if that revenue -- it incremental revenue less it's than for now was our not it's

We'll from question take Kyle with next Stephens. our Evans

another of kind add you're be I'll goal pile It the would seems mentioned TV opportunity here. XX%. an Gray, to there. XXX% with Is group with Premion there on station that like there? You

going the hear then the lastly, Second And announced have recently grow on could Twist. and a your network excellent equation, brackets question XXXX there. like to the side basis? to kind the of to is you the you we gross retrans Any True have you conviction I'm multicast it on you interested of spoke plans chance and forward. get sounds business, that Victoria, around growth visibility to put Quest Crime

Premion and right, All multicast, Victoria answer the Kyle. I'll take let and question. last

onto spectrum. but technology So looking it to we're the yes, in envelope our but the opportunities, of footprint of continues it at we're own get possible. terms addition absolutely able to of So of are that our of we possible. not right, right group, is we kind with there, right? potentially Not kind But now of to always amount in compress another -- signaling the anything the -- that kind we're is pushing the we Twist, signals. always to our On multiplex now, multicast, use with weeds, terms the of be -- signals in can encoders of improve,

technology off Twist that fantastic. one we're hopeful if But may then Quest, allows our getting is do about it, and well now, and now ground. very And the offerings, the second same very that. improve our encoders we're those as is doing focused Twist in we for So right killing way. just

here, technology So need probably continue unlikely grow. And a opportunities to but be that to looking yes, we'll development potentially, is Victoria take that we question. not which let at more I'll

to outlook relative Dave to sure I'm me a XXXX have... that, give do not is but that going we let

That correct. would be

at end up we well. Well, have Yes. this coming of XX% repricing as the about do year

right. That's That's right.

into not give So the me it give but to more even year be would you as we'll of progresses, before you get negotiations. to we disciplined those to looking guidance very it be

you responsible we year, obviously, the do subs and we -- our time. that. that's up, we that couldn't up fair just guide, the quarter especially after more doing at in ended of Yes, like Kyle, is for us pre-release with because you last why really NBC just we give same But it's number the that deal first with to give a XX%

But move did up. up grew and

But yes, up it an be arrow. will

We'll take Huber Research Partners. Arthur Doug from our next with question

Court your court and sort on appeal. Supreme significance decision? third team. circuit summary the of your had a that of of of you've now, wake to little the What and month it's I'm since been time ruled that NAB to over the a Yes. talk is in wondering Dave, legal the

when than no it different Yes, told the talked Doug, ruling. before about since it's I we've think I you

new First of we have yet. don't named still a of all, even Chair the FCC

unclear it's driving So to be who's it. going

not FCC -- democratic it. on the with start to then to because that so that the decision, to just point, clarity lack this going it. right? think of it back -- the really FCC, there's about And -- relates So let's at remains an lobby real positive that of let's I the

that, years, all a it out rule, written that starts is past news ownership flip now as allows long-term the that's ownership basis. types, have in of X -- case-by-case to have end side which in democratic the FCC opposed the industry. to of Supreme of somewhat oversight of the position great the is by of Big the the market on commissioners to with okay? FCC, is The Fours ruling does to the XX-plus been ownership current Court burden it and it, market, for not for X to the relates the nothing a way medium get that as So FCC has terms reject the the a going great effectively been how and modernization for with -- why takes That's Philadelphia takes the news Appeals of right So to used. been of in the on it's in proof put right? utilized would it But of jump sort of as they in all Court

ruling, after that how So that closer was it where than go frankly, no, XX to and might the in nothing know days might go.

So our medium TEGNA a in is is opportunity visibility of don't long which which the over of investors term. about timing we short we lot the have can't opportunity, trying but why a of the fairness all for in to we're that just to -- big obviously be measured very term, to

Okay. amount outlook clarification. The And year? a Premion, that is small is just all political adjusted the you Or Got it. for growth last of that had revised inclusive? for then

numbers, your -- year's growth that's a is political so in number last was have Political the same year. won't we question one. despite Because inclusive. which this good all -- It's that coming is

take our next Huber question Research Partners. Craig We'll from from Huber

clear to on Dave, just be end. my

more the close retrans between you discrepancy you also previously. markets to in? there your talked X% have markets you're that larger subs much midsized that curious, that's X% But I would, true, or if a that, follow-up. year-over-year, down -- you've said is so your just I Can think more please? than clarify just versus better you about down were if And

ago. first. not there a take market year the I'll was distinction or second was Yes. on maybe there that size one the There's the so

I MVPDs, weren't although think have out a benefit -- from ago. think of I virtual the fully to rolled rollout year markets the which the continued small

the our quarter. looking mindset at them -- Craig. subs, again, So in an we're boost that's no, net bit given But so of because, a in but now probably right artificial little

signaled month. And -- that the first first right, question, so right, our I not a big recent market your change. to to most that's And you're

be, rate quarter -- in size, months which first than the accelerating what got would of February, a to month closer I and be under we -- but know there of X. if the second second all X is X of is it's to is of small both is they it under X our an terms improvement. the we quarter X sample down -- the And was the were guess month the So to -- in belt, a not

could can gaming I may that? core us aspire percent the it I also, you, terms assume revenue on What clarify in top it. of quite gambling? you you update maybe have a then that? your ad X you it's and -- And sports was gambling assume not for you is excitement But category And of

I you'll get think eventually? there

Yes.

imagine So you're to a It's top X Craig. it's hard right in on yet, counts, not the it both but being not not-too-distant future.

you guys And haven't can is, this we the about to it to plan expect cetera? your rolled out how ATSE et guys? it's be your do Is from to to can a when be in the any markets, from Okay. you do you, And think then we in on you might talk X.X, most fully opportunity curious while. going hear material -- your I'm you And that for helped beneficial all heard that, what benefit see to standpoint, drive think numbers? business take you there long revenues?

Yes.

going ways as also answer is, believe to this, you those need full answer but start rollout how change I same new interesting, casting to there continue and that think past the interesting the little a think on experience I there's So business I national because relative a I before. all a get and I to -- think like our which let and still is before -- is of we've things fast. national learned first company's other me from mean, view full of and markets lot from given And question a that data I'm but to things, deployment. displayed. technologies we evolve second business bit digital changing, think are lot take personal discussing away robot I close give to pretty fast the that sound out a we're just I know technology models a discussed

very platform. creative IP may A who lot then In and up the right? Apple, money distribution business investors without nationwide of like will sees latency, that owners may from third-party be of we used broadcast the continue model distribution. way. X.X this believe outside X to this again, the look so the of our metaphor something And benefit strategy iPhone. ecosystem, it best business before. We other know I again, we since at platform, we and But And from the as I've will will with a It's distribution think come ideas of the of at own that but evolves it those like that benefit. looks built-out executives And case, ATSC model best come and an sort right? delivery a this third-party entrepreneurs the system,

we've year. to few get planning another moving Seattle, still rollout, big year, now, we Charlotte, Tampa, In year, Portland. the March, large and launch to relates to we're it we launched planning our markets. several but a they're and to more and that in -- Right -- quicker. currently launched Atlanta last As this Buffalo. doesn't TBD But D.C., Denver markets, In portfolio, we've it's we're added half launched this

for if My could, last Victoria. question, I

sense back programming talk much cost year? we on You're get if you just how a quarter. your enough that I'd if would, and cost a for without may be curious on net for this keep the to through could the outlook year, with give the nice excluding about second you Premion come as full basis of so we of

takeout it achieve said guided No, expected $XX What we is had had on of XX haven't 'XX, we year. that and we achieved for Yes. we by full on we basis. are end the million months And expense we now early that. the target about have year-over-year to a --

year full $XX that. you but guided million can count year-over-year, on we out not take expense the beyond have So

next question We're Research. with from Goss taking our Jim Barrington

the viewership the if sustainable post-pandemic wondering And costs and talk expense pricing. and talk implications? could impact the was you and the savings on also about post-pandemic about I margin ad

who If you broadcasting? sample a of viewers get greater had younger in share

on I'm sorry, I myself mute. had Jim,

one me take questions. Let second the those of

way were First about I know there's down, on viewership. Oscars some publicity being network high been down. way events program

out, point movies just nobody watched Let's year. last

have is sustainable But it. NBA how even so loan, I leaving that something network the to I NBA viewership -- the a up. And content had know with So may far. the do some back looks think and pretty the local on noise on

that our been OTT up sort the news platforms, viewership like on is but younger sustainable to an fair, improved 'XX, to on Roku Now our sticky about an them not staying having back-to-work that stays out be on So levels us X%. TV really will which how you I levels exactly that. nation ubiquitous up in things them at access think prices. -- a example like would viewership with hard late But between are affected news we still ad that people the average. have a we've negatively, really you're help early with late VERIFY digital platforms take now and Snapchat call that of and also to on right? said viewers on as get our what and the changes. If home, it's -- rolled aggregate and local and things past, on right, have those aggressively That that. mode, right. is And saw out we'll sustainable. news we Rolling But worked But relationship not our -- which news, Together, I I see been early remains. in really evening how news

digital So audience for we well. new given digital We've as other very growth monetization audiences, hopeful. also got are we've in a our -- sustainable a got

a learned So that we takeouts things and million in right? initiatives during operations we new accelerated I pandemic. place I mean, the I -- things think be additional to of in have we through the we'll done number were significant that our the can say mean $XX And really the of and technological 'XX cost different best that that would job redundant hopeful really that. embracing it cost some is looking we things they're the which and product change Relative a permanent sales. both out -- so we're are and good and think most, value to we in and scaled and make fact, permanent, a I pretty and, costs And company, taken just on something that expenses, has as reduces find well. in I in not the been while And I team that think we've hurting always where management very in the do great is we reinvesting at. ways

more of the able to you but out Are in take not terms cutting excess? space out people maybe bone, cutting just than the into office

you exactly have That's That's right. in this People business, are the even XX ago. whole goal, was Yes. right? way important our more than years Yes. most capital it

getting a those major of getting gotten office rid was we're rid out other et And end, are space Dallas. We have of some a our we cetera. business that space, office operation leases That also had number of separate third-party of. stations, We in integrating into already. back

we yes, estate costs. reducing So are our real

one And follow-up. Okay. maybe

crime you to right little is now? in programming earlier. talked is in? are -- stations? your syndication a how think you own about wondering And how to product there a keeping many time markets was I I that true much of it's that And it

Jim. Network similar country. number, The the for it's exact is vast the Crime country. No. And of I forget throughout headed but I majority the numbers. is Quest the have deployed True don't

on large beyond the So distributed got a too we've country. yes, with is double it's And the rest other very Quest headed the that of XX%, it's distributed our there on with -- broadcasters. deal in

but large swap sort can So in and we've we relationships, what distribution help -- broadcasters, of with sort via like where call each commercial in. of markets other some we other we're in not

it's And is -- but Twist So larger and well. -- but Quest not is there I -- growing. large, distribution as think we'll large, get as

for closing back to like further It I'd at the this host additional call the any time. appears no to are or remarks. questions turn there

operator. Well, you, thank

thank time join to the us for today. you, everyone, taking so And

the who the for look and every strategy, same we date. day. mentioned and year for creation on local months and you many the call, and our and progress execution communities have our as year start serve you've forward value including there has positioning for confidence years all of value guidance day. on come. We great to to very to enthusiastic seen, The continuing our the our future in stakeholders, are our As quarter our and I our full your update to are our resulted of and at to this reflect year beyond. shareholder to results in about And growth this strong exceptional a questions, in you shareholders us Thank depend delivering

concludes you for Thank today's call. your This participation.

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