QUARTERLY REPORT

Gray Reports Its 1Q Revenue Grew 11%

The increase to $226.3 million was boosted by higher local and political advertising as well as a 27% rise in retrans. Factoring out three stations it acquired between the year-ago period, revenue grew 6.8% to $217 million.

Gray Television this morning reported first quarter revenue of $226.3 million, increasing $22.8 million, or 11%, from the first quarter of 2017.

The revenue results include:

  • Local revenue (including internet, digital and mobile) of $105.5 million, up 3% from $102.6 million from 1Q 2017.
  • National revenue of $24.5 million, down 1% from $24.8 million.
  • Political revenue of $5.8 million, up 337% from $1.3 million.
  • Retransmission consent revenue of $85.6 million, up 27% from $67.6 million.
  • Other revenue of $5 million, down 31% from $7.2 million.

Gray acquired three television stations between April 1, 2017, and March 31, 2018. Collectively, these three television stations accounted for $9.6 million of the increase in total revenue for the first quarter of 2018. Including the revenue attributable to these three stations, local and national advertising revenue increased, in part, due to the $2.3 million of revenue we earned from the broadcast of the 2018 Super Bowl on our NBC-affiliated stations, compared to $0.6 million that we earned from the broadcast of the 2017 Super Bowl on its Fox-affiliated stations. In addition, revenue from the broadcast of the 2018 Winter Olympic Games on its NBC-affiliated stations was approximately $5.5 million.

Net income totaled $19.9 million, up 89.8% from 1Q 2017.

Broadcast operating expenses increased $16.1 million, or 12%, to $149.7 million for the first quarter of 2018 compared to the first quarter of 2017. The three television stations acquired between April 1, 2017, and March 31, 2018, collectively, accounted for $6.6 million of the increase in broadcast operating expenses for the first quarter of 2018.

Read the company’s report here.

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Comments (8)

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2018bstyrevr says:

May 8, 2018 at 7:57 am

When you factor out the stations they acquired, the Retrans and the Political..you can see this is not a healthy company..This company ‘s true revenue is -4%..Knowing this company ..this is their typical fuzzy math…Plus their stock is off 30% from a year ago…Nice try though …but we’re not buying it!!!

FormerOwner says:

May 8, 2018 at 9:02 am

Gray should be comparing Same Station revenue on a qtr to qtr compassion. This is very deceptive to lump new station revenue in one qtr and comparing to year before. You can not acquire your way to revenue growth sooner or later you have to operate these stations more profitably. This may explain some of these off beat acquisitions of one off stations in extremely small markets. Acquisitions to fuel next qtr earnings release and conference call. You are not going fool Wall Street and that is why your stock price is in the tank.

martelxo92 says:

May 8, 2018 at 9:39 am

Their stock price is in the tank because they gave away 25% of their company at a 10% discount to a financial institution without any reason. Just basically converted the shareholders value to cash for the company and has yet to put this money to work in 5 months and counting now.They don’t understand basic finance. Of course Thurston Howell, by way of marriage, really earned his way to the top. No wonder they make moves like that.

OldSchool says:

May 8, 2018 at 10:18 am

All of the large groups have a unique way of reporting. Always factor out new stations and you will get a different story. However it again shows the health or lack of for broadcast and digital. Retrans and Political plus cutting expenses seems to be the growth strategy. I am not sure that is a sustaining plan for Wall Street.

2018bstyrevr says:

May 8, 2018 at 10:32 am

Digital Revenue +3% ..Are you kidding me??? ….When digital is increasing at least +20% each year..Whoever is running their digital should be gone..but we know he’s got pictures..Thurston is too busy getting ready for his next glamour event where he’ll make friends with all the Hollywood stars at the upfronts with his shirt opened to the navel..Joke!!! I feel sorry for the station Managers that were purchased by this group of clowns…

2018bstyrevr says:

May 8, 2018 at 10:36 am

..The sad part is Howell does not even know what we are talking about comparing same year sales factoring out all the non-comparative revenue!!..Unbelievable…

FederalGuy says:

May 8, 2018 at 10:56 am

Last I looked, no group is reporting growth in pure core spot. But Political is projected to grow, Digital is growing (I agree that it shouldn’t be buried in with Local, they are hiding something) and retransmission is growing. All three of these segments seem to have plenty of growth runway left and controlling expenses should allow this company and other groups to continue to grow their bottom line. I also question the stock sale at a discount and why they haven’t put that money to work yet, but they do have a history of doing acquisitions, so I bet something is coming.

2018bstyrevr says:

May 8, 2018 at 1:31 pm

I see retrans not growing and in fact declining after the next negotiations..People do not need local TV any longer and the carriage rights (fees) they are demanding are long past in demand!!


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