Benzinga | Aug 9, 2021 12:35PM EDT

Tegna's Subscription, Advertising and Marketing Services Drives Q2 Beat

* Tegna Inc (NYSE:TGNA) reported second-quarter FY21 revenue growth of 27% year-on-year to $732.9 million, beating the analyst consensus of $732.4 million.

* Higher subscription revenue and AMS revenue growth drove the numbers.

* Segments: Subscription revenue climbed 16% Y/Y to $375 million, driven by rate increases, AMS revenue grew 48.8% Y/Y to $341 million, and Political revenue declined 45.4% Y/Y to $9.6 million.

* Non-GAAP EPS of $0.50 was at par with the analyst consensus.

* The adjusted EBITDA margin expanded 960 bps to 31.1% as costs grew just 11.7% Y/Y.

* Tegna generated a free cash flow of $92 million, driven by continued subscription revenue growth, sequential improvement in AMS revenue, and ongoing cost-saving initiatives.

* It held $57 million in cash and equivalents.

* Outlook: Tegna sees Q3 non-GAAP revenue (excluding political) growth of high-teens percent.

* It sees non-GAAP operating expenses of mid-to-high single digits percent.

* Tegna expects to achieve the high end of new 2020 - 2021 free cash flow as a percentage of the revenue guidance range of 21.5% - 22% (previous 21%-22%).

* Price action: TGNA shares traded higher by 1.19% at $17.81 on the last check Monday.