The publicly traded TV group says its strategy of owning strong news stations allowed it to capture most of the political advertising in a majority of its markets.
Gray Television, operator of 36 TV stations in 30 markets, reported today a 26 percent year-over-year jump in pro forma net revenue in the fourth quarter of 2006 and a 42 percent increase in cash flow.
The increases are due primarily to the strong political spending, which were partially offset by declines in local and national spot and network compensation, the company said.
Political revenue in the quarter was $25.6 million compared to $1.7 million in the same quarter of 2005.
Gray said its strategy of owning strong news stations in a majority of its markets allowed it to capture a majority of the net political revenue spent in those markets.
Gray acquired WSAZ Charleston-Huntington, W.Va., in November 2005 and WNDU South Bend, Ind., in March 2006. To make year-to-year comparisons easier, the pro forma figures includes the results of the two stations as if they had been acquired on Jan. 1, 2005.