Tegna’s broadcasting segment revenues were $417.4 million in the second quarter, up 4.8% over the former Gannett Broadcasting division’s previous second quarter. The gain was driven primarily by a substantial increase in retransmission revenue and digital revenue, offset in part by a big dip in political advertising.
Total operating revenues at Tegna were 4.2% higher in the second quarter compared to the second quarter in 2014. The increase was driven by revenue growth in the digital (74%) and broadcasting (4.8%) segments.
“We are thrilled to have capped off such a strong quarter with the very successful completion of our separation into two more sharply focused public companies,” said Gracia Martore, Tegna president and CEO. “This milestone is the result of three and a half years of unflagging dedication and diligence on the part of employees across all of our businesses, and it marks the beginning of an exciting new chapter for Tegna.”
Gannett’s publishing properties have retained the Gannett name.
Tegna announced it is selling its Virginia headquarters for $270 million and will stay in the facility for 18 months while shopping for a new home.
Broadcasting core revenue was up 3% in the quarter. Retransmission revenues increased 23.4% compared to the second quarter in 2014 and totaled $109.4 million, while broadcasting digital revenues were 23.3% higher, reflecting continued growth in digital marketing services revenue.
Tegna expects total television revenues for the third quarter to decrease in the low to mid single digits, as that quarter will be up against heavy political spending in 2014.
Digital segment operating revenues grew to $338.1 million, an increase of 74% compared to the second quarter of 2014, driven by the growth at Cars.com. On a pro forma basis, Digital segment revenues increased 5.8%.