Gray’s Third Quarter Revenue Climbs 28%

Gray Television this morning reported record third quarter revenue of $279.3 million, increasing $60.3 million, or 28%, from the third quarter of 2017, primarily as a result of increased retransmission consent revenue and increased political advertising revenue due to 2018 being the “on-year” of the two-year election cycle.

The revenue results include:

• Local revenue (including internet, digital and mobile) of $106.9 million, a decrease of 3% from 3Q 2017.
• National revenue of $29.2 million, down 6%.
• Political revenue of $48 million, up 1,099%. For comparison, after giving effect to stations acquired and divested since Jan. 1, 2014, Gray earned $41.1 million of political advertising revenue in the third quarter of 2014, which was the most recent non-presidential election year. Its political advertising revenue for the third quarter of 2018 was 17% greater than that of the third quarter of 2014, on this adjusted basis.
• Gross retransmission consent revenue of $91.6 million, while retransmission expense was $41.4 million. Therefore, retrans revenue, net of retransmission expense, was $50.2 million for the third quarter of 2018.
• Other revenue of $3.6 million, down 5%.

Net income totaled $61.9 million, up 304%, and broadcast cash flow was an all-time record of $134.6 million, increasing $54.7 million, or 69%, from 3Q 2017.

Broadcast operating expenses (before depreciation, amortization and gain or loss on disposal of assets) increased 4%, to $145 million.

Read the company’s report here.