Gray Media Returns to Profit as Political Ads Climb
Second-quarter revenue reached $839 million, topping adjusted guidance by $9 million.
The television broadcaster Gray Media (GTN) returned to a second-quarter profit as political advertising accelerated.
Political advertising revenue climbed to $83 million from $9 million a year earlier and came in $10 million above acquisition-adjusted guidance. The category also increased $53 million from the first quarter, making it the principal source of sequential growth.
Total revenue rose 9% to $839 million from $772 million and increased about 9% sequentially. Acquisitions completed in 2024 contributed $41 million, leaving organic growth at roughly 3%. Operating income increased to $136 million from $82 million, while net income swung to $14 million from a $56 million loss.
Core advertising revenue slipped 1% to $357 million despite a $15 million acquisition contribution. Excluding acquired revenue, the business generated about $342 million, roughly 5% below the prior-year period.
Retransmission consent revenue fell 3% to $359 million as subscriber declines and other distribution changes weighed on the top line. Net retransmission revenue still rose 10% to $150 million because network affiliation fees declined 10% to $209 million.
Adjusted EBITDA rose 27% to $214 million, with the margin expanding to about 25.5% from 21.9%. Broadcasting expense increased just 1% to $569 million, $2 million below the adjusted guidance ceiling, as lower affiliation fees offset higher station costs and acquisition-related expenses.
For the third quarter, Gray forecasts revenue of $935 million to $965 million, compared with $749 million a year earlier. Political advertising is expected to reach $165 million to $185 million, while core advertising is expected to remain flat.
Gray authorized up to $250 million of debt repurchases through the end of 2027 after buying back $120 million of notes in July. Debt less cash had risen to $5.691 billion at June 30 from $5.442 billion at year-end as cash declined and debt principal increased.