Local ad dollars fell 13%, national was down 33%, Internet dipped 11%, political plunged 81%, while retrans revenue jumped almost 400% to $3.2 million.
Gray Television Inc. today announced results for the three-month period ended June 30 that included a decline in total net revenue of $13.7 million, or 17%, to $65.1 million.
The company said this was due primarily to decreased local, national, political and internet advertising revenue and decreased production and other revenue.
These decreases were partially offset by increased retransmission consent revenue in the current period. Retransmission consent revenue, it said, “reflects the more profitable terms of our recently renewed contracts.”
Local and national advertising revenue decreased due to reduced spending by advertisers in the current economic recession. It said that “historically, our industry’s largest advertiser category has been the automotive industry. The current recession has significantly reduced the automotive industry’s advertising expenditures. Our automotive advertising revenue decreased approximately 48% compared to the prior year.”
Internet advertising revenue decreased due to the same factors that affected Gray’s local and national advertising revenue but to a lesser extent. Political advertising revenue decreased reflecting decreased advertising from political candidates during the “off year” of the two-year political advertising cycle.
A revenue summary includes:
- Local advertising revenue decreased $6.2 million, or 13%, to $43.3 million.
- National advertising revenue decreased $6.1 million, or 33%, to $12.4 million.
- Internet advertising revenue decreased $0.3 million, or 11%, to $2.7 million.
- Political advertising revenue decreased $4.0 million, or 81%, to $0.9 million.
- Retransmission consent revenue increased $3.2 million, or 394%, to $4.0 million.
- Production and other revenue decreased $0.1 million, or 8%, to $1.6 million.
The company said: “The current economic recession continues to challenge the television broadcast industry. We are committed to operating our stations in a manner that generates maximum revenue while minimizing operating expenses during these difficult times. Although our operating results are down compared to the prior year, we believe that our operating results compare favorably to other television broadcast companies.”