Gray Posts 2Q Record Rev, Income, Retrans

Gray Television today announced that revenue, net income and broadcast cash flow set records in the second quarter of 2015 ended June 30.

Highlights included:

• Record Revenue — Revenue for the second quarter of 2015, was $143.5 million, which was the highest for any second quarter in Gray’s history. Total revenue increased $36.2 million, or 34%, for the second quarter of 2015, compared to the second quarter of 2014.
• Record Broadcast Cash Flow — Broadcast cash flow for the second quarter was $57.2 million, which was the highest for any second quarter in the company’s history.
• Record Net Income — Net income for the second quarter of 2015, was $12.1 million, which was the highest for any second quarter.
• Record Retransmission Revenue — Retransmission revenue increased significantly to $36.9 million in the second quarter of 2015, which was the highest for any second quarter.

The principal components of Gray’s revenue for the second quarter of 2015, compared to the second quarter of 2014, were as follows:

• Local advertising revenue increased $19.4 million, or 34%, to $76.1 million.
• National advertising revenue increased $4.1 million, or 28%, to $18.9 million.
• Internet advertising revenue decreased $0.2 million, or 2%, to $7.0 million.
• Political advertising revenue decreased $6.4 million, or 75%, to $2.2 million, reflecting the “off-year” of the two-year election cycle.
• Retransmission consent revenue increased $19.3 million, or 109%, to $36.9 million.
• Other revenue increased $0.1 million, or 2%, to $2.3 million.

Gray revenues increased primarily due to the revenue of stations acquired in 2014 and increases in retransmission consent revenue. Local advertising revenue increased primarily due to increased spending in an improving economy.

Political advertising revenue decreased due to 2015 being the “off year” of the two-year election cycle. Retransmission consent revenue increased due to increased retransmission consent rates.

Within Gray’s local and national advertising revenue categories, and excluding the 2014 acquired stations, the company’s five largest customer categories experienced the following changes during the second quarter of 2015 compared to the same quarter of 2014:

• Automotive decreased 2%
• Medical increased 14%
• Restaurant decreased less than 1%
• Furniture and appliances increased 11%
• Communications decreased 3%

Factoring out the new station acquisitions, in what Gray calls a “combined historical basis,” total revenue increased $9.7 million, or 7%, to $143.5 million in the quarter of 2015 compared to the 2Q 2014. The combined historical basis components of revenue for the second quarter of 2015 compared 2Q 2014, were approximately as follows:

• Local advertising revenue increased $4.5 million, or 6%, to $76.1 million
• National advertising revenue increased $0.8 million, or 4%, to $18.9 million
• Combined local and national advertising revenue increased $5.3 million, or 6%, to $95.0 million
• Internet advertising revenue decreased $0.7 million, or 10%, to $7.0 million
• Political advertising revenue decreased $8.2 million, or 79%, to $2.2 million, reflecting the “off-year” of the two-year election cycle
• Retransmission consent revenue increased $15.1 million, or 70%, to $36.9 million
• Other revenue decreased $1.8 million, or 43%, to $2.3 million

Within Gray’s local and national advertising revenue categories, and including revenue from the 2014 acquired stations, its five largest customer categories experienced the following changes during the second quarter of 2015, compared to the second quarter of 2014:

• Automotive decreased less than 1%
• Medical increased 13%
• Restaurant increased 2%
• Furniture and appliances increased 10%
• Communications increased 6%

Read the company’s report here.