On August 8, 2024, Gray Television Inc (GTN.A, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Gray Television Inc is a television broadcast company engaged in owning and operating television stations, video program production, marketing, and digital business. The company operates through two segments: Broadcasting and Production companies, with the majority of revenue generated from the broadcasting segment.
Performance and Challenges
Gray Television Inc (GTN.A, Financial) reported total revenue of $826 million for Q2 2024, a 2% increase from $813 million in Q2 2023. However, the company faces macro-economic challenges that may result in lower revenues for the year than previously anticipated. Core advertising revenue for the quarter was $373 million, slightly below the low end of the guidance range. Political advertising revenue significantly increased to $47 million, surpassing the $29 million recorded in Q2 2020.
Financial Achievements
Despite the challenges, Gray Television Inc (GTN.A, Financial) achieved notable financial milestones. The company reported retransmission consent revenue of $371 million, within the guidance range. Additionally, the company reduced its broadcast operating expense guidance for the full year by $65 million and capital expense range by approximately $20 million. These cost management efforts are crucial for maintaining profitability in the Media - Diversified industry.
Key Financial Metrics
Key details from the financial statements include:
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Core Advertising Revenue | $373 million | $379 million | (2%) |
| Political Advertising Revenue | $47 million | $12 million | 292% |
| Retransmission Consent Revenue | $371 million | $394 million | (6%) |
| Net Income | $22 million | $4 million | 450% |
| Adjusted EBITDA | $225 million | $227 million | (1%) |
Income Statement Highlights
Gray Television Inc (GTN.A, Financial) reported a net income of $22 million for Q2 2024, a significant increase from $4 million in Q2 2023. Adjusted EBITDA was $225 million, slightly down by 1% from $227 million in the previous year. The company's total operating expenses before depreciation, amortization, and loss on disposal of assets were $607 million.
Balance Sheet and Cash Flow
As of June 30, 2024, Gray Television Inc (GTN.A, Financial) had $75 million in cash, up from $21 million at the end of 2023. Long-term debt stood at $6.138 billion, slightly down from $6.160 billion. The company has $474 million in borrowing availability under its Revolving Credit Facility.
Management Commentary
"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 stated in its earnings release.
Analysis
Gray Television Inc (GTN.A, Financial) demonstrated resilience in Q2 2024 with revenue growth and effective cost management. However, the company faces economic headwinds that could impact future performance. The significant increase in political advertising revenue is a positive indicator, but the decline in core advertising and retransmission consent revenue highlights the challenges in the current market environment. The company's efforts to reduce debt and manage expenses are commendable and will be crucial for sustaining long-term growth.
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Explore the complete 8-K earnings release (here) from Gray Television Inc for further details.
