Gray Television’s 3Q Revenue Soars 34%

Gray Television reported record third quarter revenue of $102.9 million, a 34% increase over the same period a year ago.

The company said the gain was due to increased political advertising, retransmission consent, both local and national advertising, Internet advertising and other revenue.

Retransmission consent revenue increased primarily due to the improved terms of Gray’s retransmission contracts. A significant portion of its retransmission consent contracts expired in 2011 and Gray said it was “able to renew substantially all of these contracts under terms more favorable to Gray, which resulted in increased revenue in the third quarter of 2012 compared to the third quarter of 2011.”  

Revenue was also boosted by Gray’s broadcast of the 2012 Summer Olympics. During the 3Q, Gray said, “we earned approximately $4.0 million of revenue from local and national advertisers and $1.1 million of revenue from political advertisers during the broadcast of the 2012 Summer Olympics on our 10 primary NBC stations.”

While Gray’s Internet advertising revenue has also benefited from an improved economy, “we continue to focus on and invest resources into our Internet sales efforts, which have also resulted in increased Internet revenue.” 

Gray also continued to earn consulting revenue under its agreement with Young Broadcasting, Inc. This agreement expires on Dec. 31.

The principal components of Gray’s revenue were:

• Local advertising revenue increased $2 million, or 4%, to $46.7 million.

• National advertising revenue increased $600,000, or 4%, to $14.3 million.

• Internet advertising revenue increased $1.2 million, or 22%, to $6.4 million.

• Political advertising revenue increased $19.3 million, or 367%, to $24.5 million.
• Retransmission consent revenue increased $3.4 million, or 65%, to $8.5 million.

• Other revenue increased $100,000, or 4%, to $1.9 million.

• Consulting revenue from the agreement with Young remained at $600,000.

Gray’s five largest nonpolitical advertising categories on a combined local and national basis by customer type posted the following changes:

• Automotive increased 25%

• Medical increased 17%

• Restaurant decreased 13%

• Communications decreased 4%

• Furniture and appliances increased 12%.

Read the company’s report here.