Local television broadcaster TEGNA posted a 5 percent year-over decrease in revenue during the second quarter (Q2) of the year, the end result of ongoing challenges in the traditional TV advertising market, the company said on Thursday.
Overall revenue clocked in at $675 million for the three-month period that ended June 30, about in line with what the company told investors to expect. The figure was down from the $710 million TEGNA earned during a healthy political advertising season last year. Net income wsa $151 million, or 14 percent lower than Q2 2024.
With the political ad money all but gone, TEGNA and its peer broadcasters relied more heavily on the hope that core ad spending would pick up and that cable and satellite distribution fees would carry the company through Q2. But cable and satellite distribution fees were largely flat during Q2, with higher per-subscriber fees charged to pay TV providers offset by ongoing churn in that business. Distribution fee revenue was $370 million, while core ad revenue was $288 million, down 4 percent.
In both respects, TEGNA joined a growing list of broadcasters who also posted lackluster Q2 results in recent days, including Sinclair and Nexstar Media Group, whose earnings reflected similar trends and challenges.
“Our team delivered on financial commitments while executing key strategic initiatives,” Mike Steib, the President and CEO of TEGNA, said in prepared remarks that accompanied the broadcaster’s earnings report on Thursday. “We’re making big investments in local journalism, digital experiences and technology to better serve our audiences and set the foundation for long-term growth.”
During Q2, TEGNA managed to cut costs where it could. The company said it winnowed operating expenses to around $553 million based on Generally Accepted Accounting Principles, or GAAP.
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