DALLAS - The Dallas Mavericks have entered into a new multi-year broadcast rights agreement with TEGNA Inc. (NYSE: NYSE:TGNA), expanding the team's television reach to an estimated 10 million people in Texas. The deal, which does not include games exclusively televised nationally, will significantly increase the number of households able to watch the Mavericks play, nearly tripling the current reach within the state.
Starting October 26 with the Mavericks versus Phoenix Suns game, TEGNA station KMPX Dallas-Ft. Worth (Ch. 29) will air over 70 games in the first season free over-the-air. Additionally, 15 or more games will be simulcast on WFAA Dallas-Ft. Worth (Ch. 8). The broadcasts will extend to TEGNA stations in other Texas cities, including Waco, Tyler, Midland-Odessa, Abilene, and San Angelo.
WFAA is now the official local broadcast partner of the Mavericks, featuring extensive coverage by lead sports anchor Joe Trahan. The station, alongside TEGNA, will also spearhead local and regional advertising and sponsorship sales for the broadcasts. TEGNA plans to announce additional Texas markets that will air the games in the near future.
The Mavericks' leadership expressed enthusiasm for the agreement, highlighting the increased access for fans to follow the team's progress since their NBA Finals appearance last season. Mavericks CEO Cynt Marshall noted the positive response to last season's additional viewing experiences and the aim to provide greater access to millions more fans.
TEGNA echoed the sentiment, with Brad Ramsey, senior vice president of media operations, expressing gratitude for the partnership with the Mavericks and the opportunity to reach a broader audience. Carolyn Mungo, vice president and station manager at WFAA, emphasized the station's commitment to delivering local sports stories and elevating the Mavericks' viewership.
Information on how to watch the games by market is available at the Mavericks' official website. The Spanish-language content currently on Ch. 29 will move to another channel, with KMPX set to become a locally-programmed independent station.
This expansion is part of the Dallas Mavericks' ongoing efforts to provide memorable experiences for fans and to make a positive impact in the North Texas community. The information provided in this article is based on a press release statement.
In other recent news, TEGNA Inc. has experienced a series of notable developments. The company has announced the departure of Senior Vice President and Chief Legal Officer Lauren S. Fisher, effective September 6, 2024. The reason for Fisher's departure has not been disclosed, and no information regarding her successor has been provided.
Simultaneously, TEGNA has appointed Jim Kizer as president and general manager of its Des Moines, Iowa stations WOI and KCWI. Kizer, a seasoned industry figure, will maintain his role as president and general manager of WQAD in the Quad Cities area of Iowa and Illinois.
Financially, TEGNA has reported a decline in total company revenue for Q2 2024, primarily due to subscriber losses and a weaker national advertising market. Despite this, the company's local advertising sector, particularly its connected TV sales platform, Premion, has demonstrated resilience. TEGNA anticipates a rise in third-quarter revenue due to political ads and the Olympics, and continues to project an adjusted free cash flow guidance of $900 million to $1.1 billion for 2024-2025. These recent developments reflect the ongoing strategic initiatives and financial performance within TEGNA Inc.
InvestingPro Insights
As TEGNA Inc. (NYSE: TGNA) secures a pivotal broadcast rights agreement with the Dallas Mavericks, the company's financial health and strategic moves are of particular interest to investors and stakeholders. TEGNA's management has demonstrated a forward-thinking approach, evident in their aggressive share buyback strategy, which can signal confidence in the company's future prospects. Moreover, the commitment to shareholder returns is underscored by TEGNA's consistent dividend payments, having raised its dividend for three consecutive years and maintaining dividend payments for an impressive 54 years.
In terms of financial metrics, TEGNA boasts a robust market capitalization of $2.27 billion, reflecting its significant presence in the media industry. The company's P/E ratio stands at 5.76, suggesting that its stock could be undervalued compared to earnings—a sentiment echoed by the adjusted P/E ratio for the last twelve months as of Q2 2024, which is 7.2. This valuation implies a strong free cash flow yield, an indicator of the company's ability to generate cash and potentially fund further growth or return capital to shareholders. Additionally, TEGNA's dividend yield as of late 2024 is 3.68%, offering an attractive return for income-focused investors.
It's also worth noting that TEGNA has maintained profitability over the last twelve months, aligning with analysts' predictions that the company will continue to be profitable this year. This financial stability, coupled with the company's strategic partnerships, such as the one with the Mavericks, positions TEGNA to potentially enhance its market reach and revenue streams.
For those interested in a deeper dive into TEGNA's financial performance and strategic outlook, there are additional InvestingPro Tips available, offering comprehensive analyses and insights. Visit InvestingPro for TEGNA to explore these valuable resources.
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