Local network broadcast TV provider TEGNA, Inc. (NYSE:TGNA) also weighed on quarterly performance, trading down -18.66% as fourth quarter and fiscal 2017 results missed top line expectations due to the absence of cyclical political revenue contributions as well as the digital businesses cars.com and CareerBuilder. TEGNA is now a pure-play TV station operator and largest owner of top four affiliates in the top 25 markets. We believe the company is well positioned for subscription revenue growth as cable, satellite, telecom operators and virtual multichannel providers pay for the right to carry TGNA’s programming. We think network TV remains the most effective medium that has mass reach and the ability to build a brand campaign for national and local advertisers. TGNA is also poised to deliver strong free cash flow in 2018, due to growing retransmission revenues, Super Bowl LII on NBC, XXIII Olympic Winter Games on NBC and political advertising.
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From John Rogers (Trades, Portfolio)' first quarter 2018 Ariel Fund shareholder letter.
