While Gray Television reported fourth quarter and full year total revenues down from a year ago, the decrease was due to 2013’s lack of political revenue. When compared to the last political off year (2011), Gray posted record 4Q and full-year numbers as follows:
- Fourth quarter of 2013 revenue was $95.6 million; previous off political year fourth quarter record was $84.7 million in the fourth quarter of 2011
- Full year 2013 revenue was $346.3 million; previous full year record for an off political year was $307.1 million in 2011.
- Fourth quarter of 2013 broadcast cash flow was $36.8 million; previous off political year fourth quarter record was $34.4 million in 2011.
- Full year 2013 broadcast cash flow was $128.2 million; previous full year record for an off political year was $109.6 million in 2011.
- Fourth quarter of 2013 broadcast cash flow less cash corporate expenses was $30.84 million; previous off political year fourth quarter record was $30.75 million in 2011.
- Full year 2013 broadcast cash flow less cash corporate expenses was $110.4 million; previous full year record for an off political year was $95.6 million in 2011.
Commenting on the completed periods, Hilton H. Howell Jr., Gray’s president-CEO, said: “I am proud of the significant strides the company made in 2013, recording record results for an off political year. Our results reflect our continued commitment to owning and/or operating top stations in our local markets, and to leveraging the benefits of our operational excellence in order to deliver value to our stockholders.
“We also entered into a number of significant transactions in 2013, and we continue to work toward completing the successful acquisition and integration of these operations, which we believe will further strengthen our company.”
In the fourth quarter, local, national and Internet advertising revenue and retransmission consent revenue all increased, while, as expected, political advertising revenue, consulting revenue and other revenue decreased. Local, national and Internet advertising revenue increased primarily due to increased sales to customers in the automotive and medical industries. Retransmission consent revenue increased primarily due to increased rates.
Political advertising revenue decreased due to decreased advertising from political candidates and special interest groups in the “off year” of the two-year political advertising cycle. As a result of the foregoing, total revenue decreased $31.0 million, or 25%, to $95.6 million for the fourth quarter of 2013 compared to the fourth quarter of 2012.
In the 4Q:
- Local advertising revenue increased $6.7 million, or 13%, to $57.0 million.
- National advertising revenue increased $1.1 million, or 7%, to $16.2 million.
- Internet advertising revenue increased $0.4 million, or 6%, to $7.0 million.
- Retransmission consent revenue increased $3.0 million, or 35%, to $11.5 million.
- Political advertising revenue decreased $41.5 million, or 96%, to $1.8 million.
- Other revenue decreased $0.1 million, or 7%, to $2.0 million.
Gray’s five largest nonpolitical advertising customer categories on a combined local and national basis, by customer type: automotive increased 6%; medical increased 13%; restaurant was unchanged; furniture and appliances decreased 1%; and communications increased 5%.
For the full year:
- Local advertising revenue increased $11.7 million, or 6%, to $203.1 million.
- National advertising revenue increased $1.5 million, or 3%, to $58.3 million.
- Internet advertising revenue increased $0.4 million, or 2%, to $25.4 million.
- Retransmission consent revenue increased $6.0 million, or 18%, to $39.8 million.
- Political advertising revenue decreased $81.4 million, or 95%, to $4.6 million.
- Other revenue decreased $1.5 million, or 16%, to $8.0 million.
- Consulting revenue increased $4.7 million to $7.1 million.
Gray’s five largest nonpolitical advertising customer categories on a combined local and national basis, by customer type: automotive increased 8%; medical decreased 1%; restaurant decreased less than 1%; communications increased 3%; and furniture and appliances increased 3%.
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