Gray Television’s 3Q Revenue Down 10%

Gray Television Inc. today announced that its total revenue decreased $8.8 million, or 10%, to $76.5 million for the third quarter of 2011 (ended Sept. 30) compared to the third quarter of 2010 due primarily to decreased political and national advertising revenue, partially offset by increased local and Internet advertising revenue and retransmission consent revenue.

Political advertising revenue decreased due to decreased advertising from political candidates and special interest groups in the “off year” of the two-year election cycle.

Local and internet advertising revenue increased due to increased spending by advertisers in what Gray called “a modestly improving economic environment while national advertising revenue suffered somewhat from decreased advertising spending by supermarket, financial/insurance and entertainment customers.”

Retransmission consent revenue increased due to an increase in the number of subscribers and improved terms of our retransmission contracts in the third quarter of 2011 compared to the third quarter of 2010.

The company also continued to earn base consulting revenue from its agreement with Young Broadcasting Inc.

The principal types of revenue, and period over period changes therein, were:

• Local advertising revenue increased $400,000, or 1%, to $44.7 million.
• National advertising revenue decreased $500,000, or 4%, to $13.8 million.
• Internet advertising revenue increased $1.9 million, or 57%, to $5.2 million.
• Political advertising revenue decreased $10.8 million, or 67%, to $5.2 million.
• Retransmission consent revenue increased $500,000, or 11%, to $5.2 million.
• Production and other revenue decreased $300,000, or 17%, to $1.7 million.
• Consulting revenue from the agreement with Young remained at $600,000.

Gray’s five largest local and national advertising categories on a combined local and national basis by customer type for the third quarter of 2011 demonstrated the following changes during the period compared to the third quarter of 2010: automotive increased 5%; restaurant increased 3%; medical increased 7%; communications increased 7%; and furniture and appliances increased 9%.

Read the company’s report here.