Gray 4Q Pro Forma Broadcast Rev Climbs

Gray Television pro forma broadcast revenue for the fourth quarter of 2019 was $554 million, up 69% from $328 million in 4Q 2018.

The pro forma financials, labeled as “Combined Historical Basis,” released this morning, reflect divestitures and acquisitions that the company has made since the start of 2017, most notably its merger with Raycom Media, which closed in January. The company said the merger “resulted in annualized synergies of at least $85 million.”

Highlights of the report:

• Local advertising revenue (including internet/digital/mobile) increased 108% to $243 million.
• National advertising revenue increased $31 million, or 116%, to $67 million.
• Political advertising revenue decreased $45 million, or 54%, to $38 million.
• Retransmission consent revenue increased $93 million, or 110%, to $195 million.
• Production company revenue was $25 million.
• Other revenue increased $7 million, or 175%, to $11 million.

The company said: “Our revenue for the fourth quarter of 2019 was $579 million, increasing $251 million, or 77%, from the fourth quarter of 2018, marking our highest ever quarterly revenue. Our net income for the fourth quarter of 2019 was $94 million. Our broadcast cash flow was $229 million, increasing $57 million, or 33%, from the fourth quarter of 2018, making it our highest ever quarterly broadcast cash flow. Our adjusted EBITDA for the fourth quarter of 2019 of $215 million significantly exceeded our expectations.”

Read the company’s report here.