Local television broadcaster TEGNA reported lower overall revenue for the first three months (Q1) of the year, driven primarily by lower political advertising spend and a loss of the Super Bowl to Fox.
Core advertising revenue across TEGNA-owned stations and digital properties accounted for $286 million of the company’s $680 million in earnings during Q1. Core ad revenue was down 3 percent compared to Q1 2024, a period when many of TEGNA’s CBS-affiliated stations saw a windfall from the Super Bowl that year. In February, the Super Bowl aired on Fox, a network that few TEGNA stations are affiliated with.
Unsurprisingly, political advertising revenue was down substantially, with Q1 being the first full earnings period since the end of the 2024 election. Political ad revenue clocked in at $3.6 million, down 87 percent from the $27.8 million TEGNA earned during Q1 2024.
Distribution revenue — fees charged to cable, satellite and streaming platforms for the rights to provide TEGNA-owned local channels to subscribers — continues to account for a sizable portion of the company’s overall revenue each quarter. During Q1, cable and satellite fees earned TEGNA $380 million, a figure that was largely unchanged from Q1.
That line item continues to be affected by a disagreement TEGNA experienced with satellite broadcaster DirecTV during the last half of 2023, which impacted TEGNA’s Q1 2024 distribution fee revenue when DirecTV opted to pull the company’s channels from its platform for a few weeks.
“We’re making important progress on the key initiatives that are shaping TEGNA’s future,” Mike Steib, the company’s CEO, said in a statement on Thursday. “While the macro environment remains volatile, we’re staying focused on execution, reinventing how we serve our local communities to maximize the full opportunity across both linear TV and digital. With industry-leading brands, top talent, and a strong balance sheet, we are well-positioned to win.”
