TEGNA Presents Strategy for Growth and Innovation, Financial Outlook Post-Cars.com Spin-off at Investor Meeting
Growth Strategy Aligned with Evolution of Media and Broadcast Industry
Reaffirms Media Guidance of Low to Mid-Single Digit Revenue Growth in 2017
Projects Media Revenue Growth of Low to Mid-Teens in 2018
Expects to Pay a Regular Cash Dividend of
“TEGNA is a world-class media company well positioned to accelerate growth,” said Lougee. “Our intense focus on innovation, combined with significant scale and best-in-class operational execution, allows us to capture the opportunities we see in this dynamic and evolving industry. In addition, our leading position presents significant opportunities for us to be an active participant in the consolidation we expect as a result of regulatory changes.”
Lougee continued, “As a standalone company, we will continue to produce
trusted content, conduct impactful investigations, develop original
storytelling and create innovative marketing solutions. We are driven by
our strongly-held values and desire to serve the greater good of our
communities, as well as our focus on the long-term interests of
Growth Strategy
TEGNA’s growth strategy is comprised of four pillars, closely aligned with the evolution of the media and broadcast industry. First, the company will continue to embrace industry change, grow market share and expand the markets we’re targeting. Second, it will accelerate the growth and monetization of its multi-platform business, allowing its advertising partners to reach viewers wherever they consume content. Third, it will leverage its scale, locally-relevant content and innovative programming to grow subscriber revenues across traditional and OTT distribution channels. Fourth, it will diversify its revenue base through continued investment in new and innovative business models that leverage its strong assets and advantaged scale.
Financial Outlook
During the investor presentation,
- Revenue growth of low to mid-single digits in 2017 and low to mid-teens in 2018
- EBITDA margins between 35%-37% in 2017 and between 39%-42% in 2018
Including CareerBuilder and excluding
Capital Structure
The company expects to maintain its existing credit facility following
the transaction and expects to target long-term leverage levels in line
with its peers. The company intends to use a one-time
Forward-Looking Statements
Any statements contained in this press release that do not describe
historical facts may constitute forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995,
including statements with respect to the potential separation and
distribution of TEGNA’s digital automotive marketplace business to its
stockholders (the “spin-off”) and the expected financial results of the
company after the spin-off. Any forward-looking statements contained
herein are based on our management’s current beliefs and expectations,
but are subject to a number of risks, uncertainties and changes in
circumstances, which may cause the company’s actual results or actions
to differ materially from what is expressed or implied by these
statements. Such risks include, but are not limited to: uncertainties as
to the timing of the spin-off or whether it will be completed, the
possibility that various closing conditions for the spin-off may not be
satisfied or may be waived, the expected tax treatment of the spin-off,
the impact of the spin-off on the company’s business and the
availability and terms of financing. Economic, competitive,
governmental, technological and other factors and risks that may affect
the company’s operations or financial results expressed in this press
release are discussed in the company’s Annual Report on Form 10-K for
the fiscal year ended
About
View source version on businesswire.com: http://www.businesswire.com/news/home/20170517005998/en/
Source:
TEGNA Inc.
For media inquiries, contact:
Steve Kidera
Manager,
Corporate Communications
703-873-6434
skidera@TEGNA.com
or
For
investor inquiries, contact:
Jeffrey Heinz
Vice President,
Investor Relations
703-873-6917
jheinz@TEGNA.com