Gray Television 2Q Revenue Down 6%

Gray Television this morning announced that total revenue for the second quarter of 2023 came in at $813 million, a decrease of 6% from 2Q 2022.

That revenue total comprised:

• Core advertising revenue (excluding political) was $379 million, an increase of $13 million or 4%.
• Political advertising revenue of $12 million, down 90%.
• Retransmission consent revenue of $394 million, up 3%

• Production companies revenue of $12 million, down 8%.
• Other of $16 million, down 6%.

Broadcast cash flow was $251 million, a decrease of 23%.

The company said “the strong financial results were “above the high end of our revenue guidance and total operating expenses (before depreciation, amortization and loss on disposal of assets) of $593 million, which was below the low end of our expense guidance for the quarter.

“Gray continued to execute across its portfolio of high-quality television stations and digital platforms as it combines its market-leading local news with strong network programming to deliver unparalleled reach for advertisers. In the second quarter of 2023, Gray’s total revenue increased by $266 million or 49% compared to 2021, our most recent non-political year, reflecting both the integration of key assets acquired in the second half of 2021 and organic growth across the company’s footprint in core revenue, political advertising revenue and retransmission revenue.

“We are particularly pleased with the performance of our television stations during the quarter. Our television stations’ core advertising revenue increased 4% on a year-over-year basis. We saw continued improvement in the automobile advertising category with a 20% year-over-year increase, which was fueled by even larger increases year-over-year in the national segment of that category. In addition, political advertising revenues in a non-political year were relatively strong at $12 million. As with the first quarter of 2023, the second quarter’s political advertising revenue was double the amount of the corresponding quarter in 2019, the last year that preceded a presidential election year.

“Given these solid performances across our television stations’ in the first half of 2023, we anticipate that our television station operations will grow advertising revenues during the remainder of 2023, as well as future years, due to our strong positions in local markets and the exceptional efforts of our local station staff.

“We are pleased to report that construction on the Assembly Studios portion of Assembly Atlanta and much of the infrastructure for the entire project is now substantially complete, and our main tenant has begun moving into its leased production facilities. Later in 2023, we expect to report the commencement of revenue from both long-term and short-term leases of soundstages and related facilities to various content producers. We anticipate that capital expenditures for the Assembly Atlanta project will be in the range of $25 million to $30 million during the second half of 2023. In the first half of 2023 we have received a total of $38 million in cash proceeds from a quasi-governmental authority for infrastructure related components of the project. We anticipate receiving approximately $90 million in additional cash proceeds from that quasi-governmental authority and/or limited land sales, later in 2023.”

Read the company’s report here.