TEGNA (TGNA) 6 Nov 212021 Q3 Earnings call transcript

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

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

cause are Before we and to may include in statements forward-looking like Factors webcast also filings. actual differ. that This results differ you financial includes get remind started them that SEC our certain may and outlined measures. I'd call this to our presentation conference non-GAAP

We have press directly release. those Dave. the to our comparable let that the to me turn provided most reconciliations of With call in GAAP measure over measures

Thank you, Doug and good morning, everyone.

on on business, record capitalized record fueled throughout marketing metrics. across full the achieved trends improved accelerated financial We have advertising exceed quarter, third the that our year. broad continued building for Strong subscription year company the and execution another revenue, to or and track key subscriber TEGNA our all revenues momentum quarter. on in trends guidance services strength advertising meet total and XXXX quarter and During remain

and result this creation the expectations going performance the growth direct strategy. quarter Our pillars of are of forward supporting performance value consistent for five TEGNA's

four, pro and M&A balanced will our of support results innovation; long-term with third of even revenue our results our some free the record cash for up record including results achieved more you quarter and was organic adjacencies; as to our revenue Marketing record you up forma third third more but year. year-to-date quarter AMS compared in company Advertising political strong maximize basis. the pillars positive environment. and XX% business AMS are a decisions a serve driven quarter detail in are pillars a drive to by Olympics, make was Services decisions Star on of themselves, X% revenue North These Victoria provide validation market of process. creation; for any our on in are: for accretive opportunities of and or These strategic capital allocation excluding two-year shareholders a pro that when to ability to two, basis. of on context third for cover when million last value compelling basis up a five was Total strategy Even value highlights. a through our pursue forma opportunities strong and generate XXXX, the and consider impact As still but best-in-class compared three, revenue. AMS reminder, XXXX one, the balance flow execute $XXX quarter revenue our the we stand for operator; five, X% as growth sheet year-over-year, the actively leverage capital subscription again

and the strong our now in our here quarter at significantly Our issues fourth revenue. over than put levels, more this more AMS that Victoria expanded now markets largest XXX% in had will platform in months strength months auto will to trends but categories rising offsetting impacting OTT across rapidly. the online want well. added cover to and I ad we in going broad with advertising last reach AMS states growth coming AMS and more our as pre-COVID chain industry-leading deliver the local strength which the categories the of Louisiana Premion, in expect our well betting is the – XX betting are has three category highlight of ago coming remained got third Sports exist growing year and New detail but to the do footprint diversify continues didn't AMS to that supported sports even coming ahead first-to-market betting third our in further broad-based national since marketing supply we quarter advertisers. We've revenue. seventh record category quarter be York and to differentiated current online our strength and Maryland, than and that more us growth its Online solutions more in and and – are quarter both years three legalized advertising Premion OTT

number in growth both advertisers continue experience to We the serves. Premion of revenue very strong and

awards scale. customers Premion solutions Cynopsis Buying recently reflecting space. during way. brand-safe ad grows demand to expect Awards Audience-Based driving financial see continues the including as enhancements systems, over the We five at Outstanding two an adoption the also and efficiencies Brand processes next in AVOD Ongoing and and Digital in to advertising technology industry and Premion, to the in streaming growth significant the are Safety, value-add consumer Platform that provides and business category three years, operational received tech to Premion innovative the Best

we continue station XXX at have our we high-quality basis of Last model. Net XXXX. of strong virtual showing quarter This Turning to revenue. XX% for approximately additional an predictable than streams. rate we growth first this of four our for the support of end year. repriced renewal grew rates high-margin key subscription points our Big the and and better traditional revenue consistent now both our of predictable of leading with a our stream year, and is up revenue durability subscribers quarters brands subscribers, XX% than revenue to subscriber at Subscription our the business growth and in XX% of year-end year-over-year a local The XX% underlying trends affiliate by driver subscription saw more subscribers this performance second improvement now are rate the year. in third

but while October been combination XX with wanted subscribers total fourth X, our desired Our detail and have cover our Victoria in I DISH year of than some note across remains full guidance represent since TEGNA's of metrics XX% local that quarter DISH in will less most our the dark subscribers. and program content paid national markets. to trusted key and we

on we exceed play states targeted to metrics. the strategies, critical disruption constituents in remain marketing our as reach And every battleground state of preferred a also so or political guidance track despite that to our medium role stations TEGNA and in key today. meet platform. as across all

a provide and year, our in races year, Looking our will the -- to North seat be seats most Arizona, in in next expect ahead year is the races Ohio, at education benefit Nearly Arizona set to the more forma heightened gubernatorial of going to political are is we evidence To the some midterm ago. and are an this $XX be anxiety historic estimates our local of competitive and next up four elections record, next of years are awareness Senate economy. we of gubernatorial Arizona, on TEGNA $XX-plus XXXX. half And advertising the million Senate for have internal expected spending both as and US state of within general issues Senate of seat which quite Kelly expected see all to year Warnock level Pennsylvania, competitive in due the level the repeats footprint footprint. Wisconsin and races, the local expect expect Hampshire bit. that, spending for than from election off-year Notably year's are have, that last both to million open levels. compared Florida, and given as where upcoming were raised color Engagement we local and significant we New year's Carolina, Georgia, Georgia competition. races engagement Georgia the including in the safety far around spending to as to pro well At and pandemic, the local seats they higher we're saw in occurring

flow is return momentum decision-making. capital I revenues which our capital to earlier. cash high-margin the reminder, subscription flows by is broad-based as shareholders augmenting to business AMS through of TEGNA's allocation, strong turning flow, fuel strength basis cash weighted ability mix this to on Now high-quality free political a durable allocation These value and generates revenue referenced advertising cash a toward the two-year driven continued thoughtful

cash XX%. of We continue the to our XXXX of high-end expect as revenue to to free flow to XXXX percentage guidance, XX.X% achieve of a

As to dividend we strong cash repurchase extended performance deleveraging, This comes program. flows progress on the decision significant our and of which our in of September, of year-to-date update October. future drove was strength heels our our the on and significant quarterly the announced timing to share paid in July for completing increase XX%,

management on our and our for thoughtful remain in to efforts, as staying approach and allocation in allocation through capital evaluates generating shareholders. capital maximize We savings, value continued options all thorough, be management our cost we focused always, to And additional Board incremental continue efficiency expense our efforts. our active to

XXXX initiatives fought to, and in on and between its reporting stations our users false at viewers true misinformation has helping verify you TEGNA. Since Now information. update underway and distinguish strategic several disinformation launch

and quarter path the significant represents over video from also unique expanded four for through sports of professional last large XX the YouTube million during quarter, network all who averaging shows programs an up. the video more the major downloaded to shows end period XX XX% expand more Podcasts network This through starring on launch year. five insider's and visitors local XX% with with a quarter. than Big daily On On of increase to third leagues grow visitors, across recently year. continued During leading last program its a now original Locked our million same more monthly monthly in professional now than sports and were platforms, podcast continued a the September Locked VERIFY retired and college also viewed year-to-date is has and/or a presence increase players. the times the than on content year-to-date

to our ahead schedule and goals. are in significant and XXXX ESG continue we on of progress our now efforts, inclusion on to diversity, our make objectives progressing Turning equity

black, of goals a publicly reflects in disclosed and important coverage developed have role us roles. the content and color storytelling people serve. of of XXXX these beginning representation were and across we seriously, we As take our this increasing communities accountable quantifiable reminder, teams, the And We year. and ensuring for in they our hold management leadership indigenous the content at all

that important to all These newsrooms and through continued audits to reporting that provide serve we this digital progress. with And feedback journalism bias, accomplish end year. the marketing and inclusivity and of an again, a by us of making on accountable. inclusive of we the are broadcast representing actionable fostering to Our diverse program communities ensure is audit to we content hold us designed our help end, independent working and Equally measuring culture this unconscious XX innovative leadership across firm research are training. is inclusive our progress,

winner. newsrooms. proud, each inaugural speaks XX to Delivering And New Awards. at one who Murrow and than were States. by news news the black stations Murrow that Large that the the especially for, WWL the The journalists in we're heart the week and at Inclusion is stations the R. other Market New In this Our Equity in RTDNA. our last the communities and award of Orleans. the our received total, WWL experience any Diversity center TEGNA look granted in each in and United Talk is more And we're Orleans, at is proud honored of first Awards This the time our been the received of of Edward organization, award team at every of National has matters Excellence

engaged the of to now it determination day our with enable they I'll do to call employees, and proud are turn over well. our and every fulfill that, that Victoria. resilience of mission And We us the

everyone. Thanks morning Dave good and

quarter of growth just by business total discussed, and revenue third subscription model by from This plan. the our execution strategic strong financial the five results all generated revenue quarter third our performance As resilience included and reflects pillars AMS across Dave revenue. resulting ongoing driven record

quarter announcements already an you've reduced our which basis and our flows, is on and operational leverage recent evidenced to allocation seen, our previously OTT in more continued while our first capital in As continuing a announced at given cash to drivers dividend, of several investments This with XX% capital further and detail opportunistic third in financial very provides we But to address, let's share repurchases as allocation make platforms. pursued firepower. plans look both by increase I'll for resulting our traditional the accelerate performance. as strong future well plans few strong including opportunities parallel, just a us are multiple our products in minutes. take all performance being our broadcast already financial and

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

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

company total our previously X% up quarter, third range. with line the announced For year-over-year was revenue in guidance

were TEGNA historically you reminder, up political than these revenue ad provide quarter quarter quarter high, against category. third As record on To strong a even year the same achieved despite here revenue last details $XXX our color by million last results stronger the being some which during additional with are performance of year.

revenue subscription rate subscription quarter and escalators XX% from Third increased driven by in existing rate year-over-year renewals contractual agreements. increases

big As our network XXXX, renewal four of encompass beginning a approximately our continuing cycle multiyear subscribers through which the the next at begin end XXXX. reminder, agreements, their XX% affiliation of of

line the As of you've sight trajectory into these streams. high-margin of a seen provide these revenue financial renewals continue clear to

by to quarter strength XX% Notably quarter basis, impacting compared when auto up and quarter issues AMS driven the of pro nearly other categories. across finished XX% on advertising despite fully forma the all revenue a third year, AMS record sectors. to ongoing broad-based was the up chain quarter compared supply last Third third XXXX industry

Third zone challenges. quarter several though significantly benefit Olympics revenue not from and given AMS pandemic both time did

X% of incremental the up was XXXX. estimated impact the to AMS compared Excluding Olympics, fully

finance, with above this strength were home year goods services, over banking exception last by including most provide categories. automotive the strong was in with double education sports the additional and care, across advertising. you broad-based, supported demand. categories betting, how up of on AMS insurance, The gains All and key AMS performed improvement, health categories XXXX showed Now color some packaged to advertising digits advertising categories, quarter.

to compared up More to pacing significantly with year-over-year. of is strengthen. year Beyond fourth well. fourth this, continues of ahead XXXX, categories notably as up the advertising AMS With market except the quarter also AMS last quarter all auto when again

positive the year. accelerating these supporting next trends quarter revenue and in fourth expect and strong continue, We to into AMS

year, Non-GAAP to programming the third Premion higher to growth third expenses fees and the quarter were driven million, $XXX for Now turning expenses last quarter. compared X% operating up expense. related by

and Premion compared basis, when XXXX reduction programming Excluding without of were same our X% revenue the efficiency, to up operating growth. non-GAAP driven pro automation and a programming Premion, On were below impacts year, reflecting down forma level, last of operating efforts. and impact the costs by expenses the expenses ongoing quarter expense X%

EBITDA in net to margin the margin year-over-year expense growth Adjusted million, XXXX. $XXX $XX down thoughtful million our just the $XXX execution up third quarter XX% was was the adjusted quarter. XX% absence high quarter the result, third of of fully third record political EBITDA by of of and in a As management. of approximately was revenue revenue this subscription XXXX, well continued AMS X% or driven as quarter seen by adjusted profits, million the EBITDA driven as Compared

and our to benefit allocation to balance disciplined thoughtful expense which now Turning decisions. sheet, continues management from capital

ended and share of leverage achieved organic year, with just we've of earlier, by low net the a through quarter a value X.XX planned. turn $X.X than year, times earlier below billion, total we achieving doing acquisitions, number ongoing that investments, and debt our full dividends last As tools more repurchases. of and a times of XXXX additional TEGNA the than targets end our that have debt previous of one year quarter guidance closing three we of full producing now create after record our shareholder inorganic track established I mentioned reduction to

We expect of leverage to end X.X the year net approximately with times.

have its reduced Create reminder, of revolving our billion to interest our leverage plan sheet which by expense, significant us remaining cap credit notes of plenty have headroom related XXXX and with several the with December And our expense obviously further leverage. This credit provides at our facility. efficiency remaining XXXX will $XXX funds the revolving plenty to X.X do in flexibility. revolver. million is million to for financial and under we times financial we balance facility, continue refinance of beginning years. debt $X a draw, maturities is the using and available of Even only As neutral to not interest capacity under any we covenant net this have under $X.X approximately reduce

there As revolver. $X.X billion of our unused of XXth, more under was than $X.X billion September capacity borrowing

As primarily and our we our strong revenue to the seen and the free flow, durable high you've throughout third history, political our quarter. achieved cash generate driven $XXX continue flow margin management of We subscription by sheet. thoughtful in free cash balance million of

forecasted of but our to expect result, to XX.X% to cash reaffirming we range. only XXXX that flow a a the end As as XXXX fully XX%, are percentage not revenue high now achieve of free of

year this again shareholders and XX% year. of earlier increase in which was return dividend, of our to October July meaningfully mentioned, in a Dave our this we through paid quarterly As increased capital in already

$XXX which expected one program As to the year updated repurchase timing a we of we million complete our also reminder, opportunistic blackouts. September, share in earlier subject will

before, To to to includes our done maximizing history. all this share we throughout local station quarterly to we've and will to and have all As end, audience expanding continue of value assess lens for our services discussed the This we we to target levels continuing inorganic our customers leverage our investments, our capital allocation as platforms. shareholders. for options brands opportunities of organic continue dividends across reach evaluate and all and reduce repurchases, while including support

following. financial to year metrics. you the provided meet for metrics As we also guidance press quarter guidance in fourth we've financial track guidance key our several exceed provided the remain or quarter model XXXX metrics expectations, fourth our in and release, release full other near-term on saw help third key on including quarter To our

partially be mid absence teens and AMS by subscription $XXX fourth percent driven the of revenue, in we revenue expect by year-over-year continued revenue. down to to high million quarter, growth political again, offset the For company total

in compared expect to associated higher We operating fourth increase in with subscription range to the by driven programming increased digits to percent fourth expense the expenses low quarter XXXX, quarter mid-single revenue.

Excluding programming expenses to operating flat costs, fourth expect year-over-year. to we quarter be down

For up completed MVPD renewals revenue trends. improving subscriber XXXX high-teens mid at as we well full on be XXXX, to expect end to subscription based percent year of the as

approximately this renewal fourth in XXXX of quarter are reminder, approximately a for quarter of subscribers the we of up of XX% As the subscribers fourth in the repriced year. and XX%

benefit $XX for For underway quarters past been full continue than cost from cash months continue to on more have of with we initiatives we these the XXXX EBITDA reduction flow come year the to targeted the that more and also annualized free XX in efficiencies. will to expand ahead million as

of Turning now be projected projected to update to to million. $XX $XX is expected is million million range Interest range the in in range the million Amortization expense $XX million. range to million. in guidance is key to Corporate XXXX be the full $XX an year to is $XXX $XX be to million million. in $XXX of be expense on expected the to our Depreciation elements. $XX of of to

be approximately $XX of expenditures as the the which centralization as expect million $XX to continuation capital streaming to of of expenditures the capital includes non-recurring of UHF million. of transitions We VHF million million our in comprised This is $XX range facility. to $XX mostly well

range an effective We to rate continue in XX% forecast of to tax XX%. the

approximately to As low and at achieved close year I three the we've our leverage earlier, X.X stated times. expect net times target year-end already out of

XXXX XXXX mentioned seen flow of over we cash Dave to questions. with now momentum earlier, both remarks full and additional XX.X% your finish I before few call and the as year XX%. take back year. of the high-end we I'll free Altogether, same quarter the we've a to as expect to range turn all to the to the for we our expect Finally, strength fourth achieve

you, Thank Victoria.

to I Q&A, to I'm all one sure interested you're turn we address topic Before that want in.

our been proposals. in press acquisition September release stated received we XX, have we considering the Board has on As and actively

evaluating and and strategy we the on just against sharply stand-alone business by importantly, reported. the team our We of remains are our have focused strong proposals as Meanwhile carefully our continued prospects. execution day-to-day evidenced these quarter

be we during And operator open all is that Q&A. time taking understand will this could you line sure you at topic questions so I'm questions. this we say on now for that, with please won't As the

take [Operator of Kurnos go you. first Instructions] from ahead. Dan our Benchmark question We now Thank Please Company. will The

the point. go obviously sports into focal a Great. chain Thanks. morning. more furniture been largely categories we supply Good be worse. obviously, touch smaller the just guys bit like Auto just big little Can a offsetting bit but it has QX, little of other that. a as sounds Maybe may being you impacted, betting rise just

what the Premion with seeing also, through if impact talk in your you granularity business? side a bit maybe the kind more little anticipating you're expectations. any of of And Just on are

quarter, not along for Again, except growth auto yeah, against it's auto. the it mean I relates the And our getting bad still to fourth as just here say actually it's categories see I is quite -- all we been all broad worse. time. would some

it's So any remains on else as see too the direction about and third it with is other true real I in fourth quarter up. said everything auto don't one negative. the I movement the or But

So issues good not as like chain impact. really including notably as trends retail. just we're supply We're else, anything seeing hitting nothing seeing far

big As it doing yes, yeah in But is it's a to auto relates Premion. Premion, great. category -- is Premion,

given dimensionally not a to fantastic. too every but and Premion business. obviously business impacted it's that tailwinds affected by is been quite auto exception just no is is the definitely as But advertising way doing same Premion the So of Premion

the about gave political Super helpful. non-political some we this state-by-state through? pretty a reading will but lens was out for just relative expectations? we about your we I big not to point time Dave sort what at And in Jersey. it. Obviously, us and just QX go how think for New that for saw do color, but You XXXX, of do thinking your how in year, Virginia number on through any you all a then read know next just start happened Got year.

a the little I'll about why. go Well, granular big I me let with the picture and then start think

more all trends look what -- bit the just trends show that. just a show on was all engagement, but a example would granularity, that the talk and I'll -- little say I of record Virginia little So right? the more another about the more

when look to -- forecasts that now our four ago, race all this year a years at used fundraising on it compare we comparative we're be you trends it to So on midterms to the and if presidential that going that's But midterms the and spending ecosystem of not year to south presidential case. surprised, amount next the XXXX. be to still is far in just of there, basis not we're out viewing

nine that too the them is and of as out will said for we got XX and competitive. races mean function of seats right? up governors what and -- seven we've have seven competitive have -- -- of got So So got cold -- I seats. almost got up go on This big is of right? hot. total our I'm the on nine Now governor year, exactly races all of a of we've we've go and we've XX states us And got of competitive we've listed and XX, governor I got competitive nine next Senate we all are what all nine multiple got those. number side think I as sorry footprint mean the a a we've the think and we've year. I've the But Senate times,

is in But big remarks, race been on you're be about for Governor's national year's district top new obviously driven It's what's whole when quarter. Virginia And Governor's was The a in -- Governor you since the remarks -- not elected over and In being school years growth stuff. engaged about given big. a is really of right? They've of driver political scripted in script going think briefly was every Secretary Maine saw it local talking totally a footprint stuff. kind for XXXX. races. of think it other population the in races this great before. from engaged State, local touched our the the this thing after Ballot to us. So it the four neck and in that That's really race instance in COVID matters reason neck race that's just happened the issues my not I all clean the But for in the COVID think local I with just for my ago. the in energy Virginia's instance for spending initiative Virginia's it's official. board, the attorney, Georgia -- election issues the my I

kind spending energy exist woken government. right? local that importance this of So to of decade didn't in ad people up and been have their now the But

local an So, the we're frothiness long see spending seats. to to competitive enormous I going in think the beyond tail of federal same going we're see

a the is color, Dave. That helpful granularity really there. for all Thanks incremental

Thanks Dan.

Arthur of our take question Research. go from We'll Please Doug Huber next ahead.

what process it FCC. road? then questions. implications Any on approved they're if made personnel, what the And nomination Two goes I means are down thanks. Yes, a the kind follow-up. to regulatory how of thoughts Dave, President Biden the finally a the couple the nominations and got of

Yes.

just this nomination I'll as on for opportunity all, use probably all of Sohn First her well her as nomination congratulate of to Gigi Commissioner Rosenworcel as, well. first

unclear go. nomination think political that read and and going to how it's I this is environment in recently I process

of near Commissioners some something going period the speculation is or X-X there's commission that there with think won't the a the Republicans perhaps will I term But in over like some Commissioner for nomination oppose X-X be the I whether to think chairs. even look new going what or to have time. uncertainty presumably Rosenworcel it's problems is

little period that does put more a a the all uncertainty is of process in So for time Doug.

a around anything. of So, lot the near I clarity it think in provide term doesn't

sports But then And as they they on you called obviously ad that better. betting getting platform them. seen big about last travel a out also listening talked night Okay. well? categories Fox which Have to is for

yes. entertainment Yes, Same too. with

are definitely back impacted nicely. COVID coming categories So these

XXXX above In even fact some of levels. we're seeing them

Okay. Thank you. Great.

We'll take Jim ahead. Barrington from our of Goss go next question Research. Please

All right. on this Thank you. A political little bit Dave. more

out and I speculating if some than were little more a if the had of as would maybe a divisive appealing for has is might was moderation And be the positions contentious come recently. that's example there some it bit think spending it been in little if more curious to that Youngkin issues than Virginia we've sort of country candidates. been that extreme you not lately Some that a more was have in have centrist because maybe rather centrist-type look the quite as on impact your that political negative

with that disagree would I Jim.

McAuliffe the centrist roof. and yet the of Republicans a is a spending the as prime example was think believe through definitely He I and as race go is Youngkin McAuliffe that. you whatever is

So fight candidates an seats. that a these I it's party for think win to incredible apparently with existential centrist each an even -- fight it's

So a no that as see problem. I don't

Okay.

Jim a anything, it standpoint. candidate it's runs right? hurts If then -- us party If spending opposite and makes a right, might from either that the French noncompetitive the race be

spending up wing the races parties to than parties that's in both So of makes put to people closer a of it their because the good terms center competitive. thing the more

conference individually own be might All of at the right. on all Well it your these assume races. maybe I interesting all call sights to -- you looking you're might at next hear these

be Okay. Yes. Would glad.

those at very the I a know could that the of I issue is can it lessening a impact coming betting sports come in stage early category ways some how issue category But way. at category the where on in of be with pricing. spots it's a that's define strong absence would in the CPMs? supply and emerging demand like that's speak and a traditionally auto. you the that on is this potential? sounds of new to in that ad And brand-new having political affecting you mean all like for Maybe And

that it's over pricing. management Jim. -- we're a yield company any right? more function question the much years, sophisticated pricing of at aggregate good We've the it's demand, very So dollars a pricing. very little how industry like bit a it's the gotten in the been especially of as day it's the Look the gotten No over relative but -- is end a about airline system Yes. much an sophisticated to many and are

CPMs on to absolutely category temporary auto new and is as negative. comes the in departure just the system dollar of any So positive is that a a adds

it's the really the So net but about -- -- net.

advertising the have has been up can when thing overall as the sports But that presume bottom lot a of is when has the very CPMs a you result supply ecosystem is a good demand upside. yes, very of because up and you for and line So betting, net nice are equation.

finally, for additional And looking partners reach quick on country? of Okay. the to just still one try Premion as expand Are the too. to you you XXX% follow-up

Yeah.

have inbounds. partner we're the be we're to for also As their we'll to Gray to and acquisition, footprint I past, tremendously stations. them what and a we their doing. we've but open more we're relative onboarding we we're adding in said been But do with when say good more Meredith has is And their are them searching still of stations

got So we through are some we've acquisition. our organic side on from going adds their

All right. Thanks much. so

you, Jim. Thank

take question of our Craig Partners. Huber from Instructions] We'll go Huber ahead. [Operator next Research Please

Thank you.

could. I some with questions start me housekeeping Let if

XXXX political the forma about political. your Was case? pro $XXX Is You million? talked that

Craig. right, Exactly Yes.

year? the Okay. Cool. And maybe retrans outlook past talked could also you up this expected you I for and a have next confirm retrans guys net mid year? you If Dave, for about preliminary to that high-XXs it appreciate net it then, in

Yeah.

the don't quarterly very deals that got And since but won't at a after retrans, year yes, we we've it update we've of of did said net But it's So we next for doing until the be we'll this next first will you guide on but soon we well. number year end very, year up on as year. up net of be last retrans on guiding like year, Craig. probably the

a talking full was up expecting? that you're to XXXX, about case high-XXs. still I year mid Is Sorry,

Yeah, close. we'll be

close. close, be very will We

material not retrans understand else it's just you're in DISH, to thinking that, right? going bottom line a be outlook to to retrans, everybody is overall you your net impact reaffirm that or So your the for

on is just going track. We said stick metrics remain simply said simply to is as what our I of today, with all key I'm that with guidance of

the I net was that quarter Dave this were What Okay. X% second please? last us number down quarter in you third year-over-year. believe And the told subs that low retrans quarter your in then,

traditionals. virtual and is a the rate for closer traditionals mid-Xs, decline it's And bit the slowed little The a Now now has us conversion to of higher. in combination Craig.

So there's players. of more sort virtual

doing Access All virtual that's CBS too is well some other some so are in virtual on also the very You which providers got of include a But side. the growth.

So it's the mid-Xs, just as which is down than better we two sub overall an now a right combination of ago. trends points about X.X said a year

revenues if to clip you this XX% has could And And talked or about it I'd number it like year. that? still the in Is your could. Dave third how be was that thought XX% perhaps expectation, to auto about up up some the below I of to much Premion, past, you that In ask quarter?

don't break We Craig. quarters Yeah. out

it's answer to the visibility but is We very very a money to And we And the like quarter XX% Premion well. the does to just XX%. of side don't it business. do it on of the comes is the have lot fourth to So way continue the shoot nicely. digital built, we'll believe into we exactly for was week-to-week traditional up continue

Thank I Great. you. That’s have. all

Craig. Thanks,

We'll from ahead. take our go Evans next question Stephens. Please Kyle of

thanks. Hi,

Just one you longer in legalized land follow-up think of betting. do that look kind of for taper curve of pike think a that that future? will And demand sports think in will on claim quick is you goes do off Dave? How inning What Thanks. on advertising there the kind you we're term? kind

have I just live could whole battle think really point going bit. terms engine potentially But acquisition it good But But you it -- yeah, think in long-term, customer the any betting I if it's too, we for with adoption don't we say the customer five much. is over to online Kyle. providers mean I was stay question, a to And there's growth acquisition that's so But little and gambling question. years some certainly today don't think if there's there's even ahead time have at a way off visibility, exactly have soon. the I think products, technology not the be more might new time I products consumer of don't cool though today, -- it we but a I don't know or gets four down battle I I great right? doesn't that tapers live then to betting a think another it's I sector. after more years. and maybe

innings say. is safe So, to early

got but Early Texas, -- innings, right -- for that's tremendous right. Remember includes that of just we're half on too, about which you a that of you population. And a very states for than have not now is which less us in a tremendous XX% of think sports on board is not legalized and online. the since XXXX, got state -- the number obviously passionate

XX time So I matter is think states will do lotteries state of own a only this years it. it's be like my view ago, till

Thank you.

our Steven ahead. of take from question next Cahall Fargo. We'll go Wells Please

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you. Thank

question now We next Crockett DCFstocks. of from will go Barton take our Please ahead.

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news COVID was Okay. That's local on in the the audience comment Great. wondering if thought one local that follow-up like the your and the and helpful. political been some for and has I between is presence key things. easing and kind of kind of through of the things stations. And you with and gyrations economic political a kind new franchise of kind coming obviously could TV cycle trends support your then on that for of

about trends the you So what point? news tell at audience can this us

bit. working -- People clearly when vary some there's to a news things Morning benefited surge back sort dropped Yes. bit. daytime then many of in on in our to so Obviously of variant performance local because and the March are issues pulled the different news home both so right pulled when COVID our we time that did news down of And little out a XX:XX normal frankly continues time what of and market, people for the by and a and working but that. Delta an some frame those actually sort station heightened XXXX cast the September by started of heart especially the frame, obviously be back people the market in as going issues that And numbers from came terms little remaining But market. back to -- news that's still the dynamics vary incredible are. see local late of back. in

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very you much. Okay. helpful. Thank That’s

Barton. Thanks,

Okay.

I think that's all.

Thank remarks. you. you Yes, it I'd like Dave to or closing additional any to hand back for

for operator Thank thanks time taking us everybody to you, the and join today.

spoke before, been to and progress So, manifesting value record so shareholders, of our for We through expect we and DE&I I of strategy much and referenced in long-term fourth advertising our to quarter multiple to impactful efforts our quarters continuing the TEGNA, on update innovative five-pillar look ahead. our the content teams year in I it's consecutive trusted continued and solutions do continued to results as about forward our furthering communities consumers our execution and you performance so and well. serving drive financial in delivering

our Head out you please everyone to you XXX-XXXX. of Investor Relations If Kuckelman at Thank day. any reach have Doug have questions, and good XXX additional a

you. Thank participation. now your Thank That call. you the concludes for

may now disconnect. You