Gray 2Q Revenue Shrinks 11%

Gray Television this morning announced that revenue for the second quarter of 2020 came in at $451 million, that’s an 11% decrease from $508 million in 2Q 2019.

That revenue total comprised:

• Local advertising revenue (including internet/digital/mobile) of $162 million, down 28% from $226 million.
• National advertising revenue of $36 million, down 36% from $50 million.
• Political advertising revenue of $21 million, up 320% from $5 million.
• Retransmission consent revenue of $220 million, up 9% from $201 million.
• Production company revenue of $2 million, down 9% from $11 million.
• Other revenue of $10 million, down 9% from $11 million.

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. Although there has recently been a gradual decline in certain government and private measures adopted to limit the spread of COVID-19, we have generally 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.

“The extent to which some of the effects of the COVID-19 crisis continues to impact our business depends on numerous evolving factors; we believe, however, that some of our programming and production activities are beginning to rebound. Despite the adverse developments, 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 half of 2020.

“The net impact of these factors has had an adverse effect on our financial and operational results during the past four months. 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 September 30, 2020, or 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 loss attributable to common stockholders, excluding non-cash stock-based compensation, was $2 million, or $0.02 per fully diluted share.

Broadcast cash flow was $123 million for the second quarter of 2020, increasing $185 million, or 14%, from 2Q 2019.

Adjusted EBITDA for the second quarter of 2020 was $108 million, decreasing $60 million, or 36%, from the second quarter of 2019.

Read the company’s report here.

Editor’s Note: This story was changed to correct the revenue and net loss totals.