Gray’s 2Q Rev Soars 24% To Record $95M

Gray Television Inc. today reported record revenue for a second quarter of $94.7 million, up 24% from $76.2 million in the same quarter last year.

The gain, Gray said,came from increased political advertising, retransmission consent, local advertising, national advertising, internet advertising and other revenue, Gray said.

Political advertising revenue increased due to increased advertising from political candidates and special interest groups in the “on year” of the two-year election cycle.  Gray’s political advertising revenue also increased due to additional advertising for a special election to recall the governor of Wisconsin, where Gray owns three television stations.

Retransmission consent revenue increased primarily due to improved contract terms. A significant portion of its retransmission consent contracts expired on Dec. 31, 2011, and the company was able to renew substantially all of these contracts under more favorable terms, which resulted in increased revenue in the second quarter of 2012 compared to the second quarter of 2011.

Local, national and Internet advertising revenue increased, Gray said, fueled by “increased spending by advertisers in a gradually improving economic environment.”

Other revenue increased due to receipt of certain cable copyright royalty payments during the second quarter of 2012.

The company also continued to earn consulting revenue under an agreement with Young Broadcasting Inc. This agreement expires on Dec. 31, 2012.

The principal components of Gray’s revenue for the second quarter of 2012 compared to the second quarter of 2011 were as follows:

• Local advertising revenue increased $600,000, or 1%, to $48.4 million.

• National advertising revenue increased $900,000, or 7%, to $14.3 million.

• Internet advertising revenue increased $1.5 million, or 31%, to $6.4 million.

• Political advertising revenue increased $10.8 million, or 467%, to $13.1 million.
• Retransmission consent revenue increased $3.2 million, or 64%, to $8.3 million.

• Other revenue increased $1.4 million, or 65%, to $3.6 million.

• Consulting revenue from its agreement with Young remained at $600,000 in the second quarter of 2012.

Read the company’s report here.