Gray Television 3Q Revenue Up 15%

Gray Television this morning announced that total revenue for the third quarter of 2022 came in at $909 million, an increase of 15% from 3Q 2021, reported on a combined historical (same-station) basis.

That revenue total comprised:

• Core advertising revenue (excluding political) was $359 million, down 23%.
• Political advertising revenue of $144 million, up 1,500%.
• Retransmission consent revenue of $368 million, up 38%

• Production companiesrevenue of $20 million, flat.
• Other of $18 million, up 29%

Net income attributable to common stockholders was $95 million down 13%.

Broadcast cash flow was $357 million, an increase of 32%.

The company said: The third quarter financial results included a “417% increase in net income attributable to common stockholders, compared to the third quarter of 2021. Overall, the third quarter of 2022 produced record results, including $909 million in total revenue, due to the combination of recent acquisitions, added scale, increasingly efficient integrated operations, and the “on-year” of the two-year political advertising cycle.

“Compared to the third quarter of 2018, the last mid-term election year, our political advertising revenue in the third quarter of 2022 of $144 million grew by 200% on the As-Reported Basis and by 30% on a Combined Historical Basis. While impressive, these figures fell short of our expectations and guidance issued in early August, due to an unexpected pullback in certain key political races. By October, political advertising revenue increased rapidly in many races in our markets and is expected to remain robust through Election Day. We currently anticipate that full-year 2022 political advertising revenue will be within a range of $495 million to $505 million.

“Gray’s strong cash flow in the third quarter of 2022 enabled us to return $124 million of capital to our shareholders including: a voluntary principal pre-payment of $100 million under Gray’s 2017 Term Loan B (due 2024); a required principal payment of $4 million under the 2021 Term Loan D (due 2028); and $20 million of cash dividends to our preferred and common shareholders. Even after these actions, Gray ended the quarter with $144 million of cash on hand. Strong operating results and political advertising revenue are expected to enable Gray to fund additional de-leveraging and cash dividend payments during the remainder of the year. On November 1, 2022, we made a further $100 million voluntary debt principal pre-payment.”

Read the company’s report here.

Also Friday morning, Gray authorized a quarterly cash dividend of $0.08 per share of its common stock and Class A common stock. The dividend is payable on Dec. 30 to shareholders of record at the close of business on Dec. 15.