Gray Media (GTN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $826 million, up 2% year-over-year, with net income of $22 million versus $4 million in Q2 2023.

• Adjusted EBITDA for Q2 2024 was $225 million, essentially flat year-over-year; six-month Adjusted EBITDA was $422 million, up 8%.

• Core advertising revenue was $373 million, down 2% year-over-year, while political advertising surged 292% to $47 million.

• Net income for the first half of 2024 was $110 million, compared to a net loss of $27 million in the prior year, reflecting a $110 million gain from the BMI investment.

• Largest owner of top-rated local TV stations, reaching 36% of US TV households across 113 markets, with strong digital and production assets.

Financial highlights

• Total revenue for the six months ended June 30, 2024 was $1.65 billion, up 2% year-over-year.

• Full-year revenue guidance lowered by $100 million: $75 million from core ad and $25 million from retransmission.

• Full-year core ad revenue guidance reduced from $1.6 billion to $1.525 billion; retransmission revenue guidance cut to $1.475 billion.

• Interest expense for the first half of 2024 was $233 million, up from $213 million year-over-year; weighted average cost of debt increased to 7.7%.

• Diluted EPS for the six months was $0.88, compared to a loss of $0.58 in the prior year period.

Outlook and guidance

• Core advertising revenue for Q3 2024 expected to be flat to up low single digits year-over-year, aided by the Olympics.

• Political ad revenue for Q3 2024 expected between $180 million and $200 million; full-year political ad revenue to be strong.

• Routine capital expenditures for the remainder of 2024 expected to be $54–$64 million, with an additional $21 million for Assembly Atlanta.

• Management expects cash on hand, operations, and credit facility access to be sufficient for obligations over the next twelve months.

• Full-year 2024 broadcast operating expense guidance reduced by $65 million to $2.335 billion; capital expense range cut by $20 million.