Gray 1Q Broadcast Rev Grows 7%

Gray Television this morning announced that broadcast revenue for the first quarter of 2020 came in at $515 million, that’s a 7% increase from $481 million in 1Q 2019.

That revenue total comprised:

• Local advertising revenue (including internet/digital/mobile) of $199 million, down 6% from $211 million.
• National advertising revenue of $51 million, up 2% from $50 million.
• Political advertising revenue of $36 million, up 1,100% from $3 million.
• Retransmission consent revenue of $213 million, up 4% from $204 million.
• Production company revenue $19 million, down 49% from $37 million.

In addition, it reported “Other” revenue of $16 million, up 23% from $13 million, bringing the company’s total 1Q revenue to $534 million, up 3% from 1Q a year ago.

The company said: “Government and private measures adopted to limit the spread of COVID-19 have affected, and are continuing to affect, our businesses in a number of ways. We have experienced a reduction in demand for advertising across our television stations and digital platforms, a very significant reduction in demand in the market for the video production of sporting and other events by our production companies, and reductions in the supply of programming, especially sports content, provided by television networks.

“At the same time, we have experienced significant increases in viewership of our local newscasts and related digital assets. We did not access any stimulus or relief grants or loans from any governmental unit during the first quarter of 2020. The net impact of these factors has been adverse to our financial and operational results starting in early March 2020 and continuing today.

“The ultimate duration and impact of these disruptions cannot be predicted at this time. In light of this uncertainty, the company cannot provide guidance for the three-month period ending on June 30, 2020, and the company hereby withdraws its previously issued guidance for calendar year 2020. Notwithstanding the foregoing, however, we continue to anticipate that in calendar year 2020, our political advertising revenue will be between $250 million to $275 million and the company will remain free cash flow positive.”

Net income attributable to common stockholders for the first quarter of 2020 was $40 million, or $0.40 per fully diluted share. Net income attributable to common stockholders, excluding non-cash stock-based compensation, was $43 million, or $0.43 per fully diluted share.

Broadcast cash flow was $181 million for the first quarter of 2020, increasing $58 million, or 47%, from the first quarter of 2019.

Adjusted EBITDA for the first quarter of 2020 was $169 million, increasing $19 million, or 13%, from the first quarter of 2019.

Read the company’s report here.