Gray Sees Lower-Than-Expected Revenues for 2024

Gray Television reported higher net income for the second quarter, but warned that it expected revenues to be lower than expected for the full year.

“While we are overall pleased with our results in the second quarter, macro-economic and other factors largely beyond our control appear likely to result in somewhat lower revenues for the year than we previously anticipated,” the company said in its earnings announcement.

Gray  said core — or non-political — advertising revenues were $373 million in the second quarter, which was below the low end of the guidance previously provided by the company and down 2% from a year ago. For the third quarter, Gray anticipates core advertising being flat to up by low single digits.

“In light of results to date and political advertising revenues arriving later in the year than originally anticipated, we currently anticipate core advertising tevenues of approximately $1.525 billion for full-year 2024, down from our earlier guidance of $1.6 billion,” the company said.

Second quarter net income rose to $22 million from $4 million a year ago.

Total revenue in the second quarter rose 2% to $826 million.

Political advertising revenue was $57 million, up front the $29 million the company registered in 2020, the last presidential election year.

Gray said it expects to see $180 million to $200 million in political ad Q2 was $371 million,

Retransmission revenue fell 6% to $71 million.

The company said it expects retransmission consent revenues in the range of $365 million to $370 million for the third quarter and a total of approximately $1.475 billion for full-year 2024.

“While we have made good progress managing costs and expenses this year, our management team is redoubling its efforts to improve the efficiency of our stations and other businesses by both increasing revenues and by further managing operating costs, capital expenses and investment opportunities for the remainder of the year and beyond, the company said.