Gray Reports 15% Gain In 2Q Revenue

Gray Television this morning reported second quarter revenue of $226.7 million, up 15% from the same quarter a year ago.

The revenue results include:

• Local revenue of $118 million, up 13%.

• National revenue of $31 million, up 19%.

• Political revenue of $3.7 million, down 62%.

• Retransmission consent revenue of $69.4 million, up 37%.

Net income was $70.6 million for the second quarter, while broadcast cash flow was $93.2 million and free cash flow was $55.9 million.

On a pro forma basis (what Gray calls “Combined Historical Basis” that factors out new station acquisitions since 2Q 2016), 2Q 2017 total revenue was $229.3 million, up 3%, with local flat at $119.8 million; national up 2% to $31.9 million; political down 67% to $3.7 million; and retrans up 25% to $70 million.

The company said it “experienced accelerating market trends throughout the second quarter of 2017. As a result, our operating revenue and political advertising revenue significantly exceeded the high end of the guidance ranges that we had provided for this period. We also succeeded in recording broadcast and corporate and administrative expenses below the low end of our guidance. This performance, plus the gain on disposal of two licenses through our participation in the FCC reverse auction for broadcast spectrum produced fully diluted net income per share of $0.97 in the second quarter of 2017.”

Read the company’s report here.