While lower political ad revenue dragged down total fourth quarter revenue, the broadcaster reported 3% gains in local and national sales as well as retrans revenue and 49% higher Internet ad money.
QUARTERLY REPORT
Gray Reports Strong Non-Political 4Q Rev
Gray Television Inc. today announced results for the three-month period ended Dec. 3, 2011, that included a 26% drop in revenue to $29.9 million due to much lower “off-year” political ad revenues. However, Gray noted, that political decrease was partially offset by increased local, national and Internet advertising revenue and retransmission consent revenue.
Retransmission consent revenue increased due to an increase in the number of subscribers and improved terms of Gray’s retransmission contracts in the fourth quarter of 2011 compared to the fourth quarter of 2010.
It continued to earn base consulting revenue from its agreement with Young Broadcasting Inc.; however, it did not record any incentive consulting revenue during the fourth quarter of 2011.
The principal types of Gray’s revenue, and period over period changes, were as follows:
- Local advertising revenue increased $1.3 million, or 3%, to $50.8 million.
- National advertising revenue increased $0.5 million, or 3%, to $16.1 million.
- Internet advertising revenue increased $1.9 million, or 49%, to $5.8 million.
- Political advertising revenue decreased $28.6 million, or 86%, to $4.6 million.
- Retransmission consent revenue increased $200,000, or 3%, to $5 million.
- Production and other revenue increased $100,000, or 8%, to $1.8 million.
- Consulting revenue decreased $5.3 million, or 91%, to $600,000 from the agreement with Young.
Gray said its five largest local and national advertising categories on a combined local and national basis by customer type for the fourth quarter of 2011 demonstrated the following changes during the period compared to the fourth quarter of 2010:
- Automotive increased 17%
- Restaurant decreased less than 1%
- Medical increased 18%
- Communications decreased 2%
- Furniture and appliances increased 6%.
The company said it was “pleased with our operating results for the fourth quarter of 2011. For the fourth quarter of 2011, our operating results were consistent with or exceeded our estimates, which were publicly disclosed on Nov. 4, 2011. Our actual total revenue exceeded our estimates, our actual broadcast expense was within our estimated range and our actual corporate expense was below our estimated range.”
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Read the company’s report here.
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