Gray Media (GTN) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $1.045 billion, up 21% year-over-year, with net income of $156 million versus a $22 million loss in Q4 2023.

• Full-year 2024 revenue was $3.281 billion, with net income of $375 million, reversing a $76 million loss in 2023.

• Adjusted EBITDA for Q4 2024 was $402 million, up 86% year-over-year, and full-year Adjusted EBITDA was $1.162 billion, up 42% from 2023.

• Major debt reduction achieved: $520 million paid down in 2024, surpassing the $500 million goal, with no significant maturities until 2027.

• Assembly Studios launched new broadcast shows, expanded local sports content, and generated positive cash flow.

Financial highlights

• Operating expenses in Q4 2024 were 2% below the low end of guidance, with $648 million before depreciation and amortization.

• Political ad revenue in Q4 was $250 million, surging 658% year-over-year and displacing core ad revenue.

• Digital core ad revenue grew 17% year-over-year in 2024, surpassing core national ad revenue for the first time.

• CapEx for Q4 was $96 million, slightly below guidance, with lower CapEx expected in 2025.

• Full-year broadcasting revenue was $3.195 billion, with production companies contributing $105 million in 2024.

Outlook and guidance

• Q1 2025 total revenue guidance: $764–$775 million, down from $823 million in Q1 2024.

• Core advertising revenue expected to decline 7–8% year-over-year in Q1 2025, mainly due to economic uncertainty, network mix, and one less billing day.

• Excluding Super Bowl and leap day, Q1 2025 core ad revenue is guided down 3–5% from Q1 2024.

• Cost containment measures expected to achieve or exceed $60 million annual run-rate savings by end of Q1 2025.

• Encouraging signs for core ad growth in the second quarter and beyond.