Tegna Core Advertising Climbs 14% In Q4 Amidst Automotive Ad Weakness

Core advertising revenues at TV station group Tegna continue to climb -- amidst weakness in the automotive category due to supply-chain issues.

The station group's Advertising-Marketing Services (AMS) unit was up 14% in revenue in Q4 2021. There was strength across all advertising revenues.

Tegna says Q4 growth also continues compared to the pre-pandemic period. In the fourth quarter of 2019, AMS revenues grew 7%.

Subscriber revenues -- which includes retransmission agreement business -- grew 7% to $335.9 million in Q4 2021, while political advertising was down 90% to $26.6 million -- against a strong Presidential election advertising season in the fourth quarter of 2020.

Tegna separates political advertising from its earnings results.

Total company Q4 revenue was down 17% to $775 million -- in line with estimates, due to lower political advertising business.

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Tegna has agreed to be bought by investment hedge fund firm Standard General and investors led by Apollo Global Management and its Cox Media Group, for $5.4 billion in cash, at $24 a share.

The deal is expected to close in the second half of 2022. Monday morning trading of Tegna's stock was up 0.4% to $22.81.

The company's Premion business -- which sells locally targeted OTT advertising inventory -- grew 40% for the full-year 2021 versus 2020 -- despite weakness in the automotive category. Tegna did not offer other financial data.

Many TV station groups have started up OTT ad sales companies, to be combined with local TV-based deals, in order to boost reach for local TV advertisers.

Premion is expected to operate as a stand-alone business, majority owned by Cox Media Group and Standard General.

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