Gray 4Q Broadcast Revenue Down 9%

Gray Television this morning announced that total revenue for the fourth quarter of 2021 came in at $721 million, a decrease of 9% from the fourth quarter of 2020, primarily due to the cyclical decline in political advertising revenue. Discounting the off-year political comparisons, total core revenue grew 26% to $359 million.

The primary components of revenue were: combined local and national broadcast advertising revenue of $359 million and retransmission consent revenue of $294 million, both of which significantly exceeded the company’s expectations and guidance.

That Broadcasting revenue total comprised:

• Local advertising revenue (including internet/digital/mobile) of $277 million, up 25%.
• National advertising revenue of $82 million, up 32%.
• Political advertising revenue of $20 million, down 92%.
• Retransmission consent revenue of $294 million, up 35%.

The Production company revenue totaled $29 million, which was flat.

Other revenue totaled $19 million, up 12% from a year ago.

Net income attributable to common stockholders was $16 million, or $0.17 per fully diluted share, a decrease of 92% from the fourth quarter of 2020. Excluding transaction related expenses and non-cash stock compensation totaling $59 million, the net income attributable to common stockholders would have been $60 million.

Broadcast cash flow for the third quarter of 2021 was $258 million, a decrease of 39% from the fourth quarter of 2020. Adjusted EBITDA was $224 million, a decrease of 45% a year ago.

The company said: “While the quarter did not include political advertising revenue at the robust levels experienced in the fourth quarter of 2020, our total revenues of $721 million were strong for an off-year of the two-year political advertising cycle, and higher than our anticipated results due to continued improvement in economic conditions and our acquisition of the Local Media Group of Meredith Corporation on Dec. 1, 2021, and Quincy Media on Aug. 2, 2021.

“Most notably, in the fourth quarter 2021 our combined local and national broadcast advertising revenue, excluding political advertising revenue (total core revenue) increased by 26%, and our retransmission consent revenue increased by 35%. Our total revenue for the year ended Dec. 31, 2021 was $2.4 billion, the highest we have ever reported.”

Read the company’s report here.

Also, yesterday Gray authorized a quarterly cash dividend of $0.08 per share of its common stock and Class A common stock. The dividend is payable on March 31 to shareholders of record at the close of business on March 15.