Local advertising revenue decreased 11%, to $41.1 million; national dropped 27%, to $12.8 million; political was down 76%. Retrans revenue was up 466% to $4.3 million.
Gray Television Inc. today reported that its total net revenue decreased $16.2 million, or 20%, to $66.4 million in the quarter ended Sept. 30.
It attributed the drop primarily to decreased local, national and political advertising revenue and decreased production and other revenue. These decreases were partially offset by increased retransmission consent revenue and increased consulting revenue in the third quarter.
Retransmission consent revenue reflects the more profitable terms of its recently renewed contracts.
Consulting revenue increased to $300,000 due to the agreement with Young Broadcasting Inc.
Local and national advertising revenue decreased due to reduced spending by advertisers as a result of the current economic recession.
Historically, Gray’s largest advertiser category, it said, “has been the automotive industry. The recession has significantly reduced the automotive industry’s advertising expenditures. Our third quarter automotive advertising revenue decreased approximately 33% compared to the prior year.”
In addition, during the 2008 three-month period Gray earned a total of $3.4 million of net revenue from local and national advertisers during the broadcast of the 2008 Summer Olympics on its 10 NBC stations. There were no Olympic Game broadcasts during 2009.
Political advertising revenue decreased, reflecting decreased advertising from political candidates during the “off year” of the two-year political advertising cycle.
Local advertising revenue decreased $5.1 million, or 11%, to $41.1 million.
National advertising revenue decreased $4.8 million, or 27%, to $12.8 million.
Internet advertising revenue remained relatively stable at $2.9 million.
Political advertising revenue decreased $10.0 million, or 76%, to $3.1 million.
Retransmission consent revenue increased $3.6 million, or 466%, to $4.3 million.
Production and other revenue decreased $0.1 million, or 6%, to $1.7 million.
Consulting revenue resulting from the Young Broadcasting agreement was $0.3 million in the third quarter.