On November 8, 2023, Gray Television Inc (GTN.A, Financial) released its financial results for the third quarter ended September 30, 2023. The company reported a significant increase in total revenue, reaching $803 million, which was above the high end of their revenue guidance. This represents a 34% increase compared to the same period in 2021, the most recent non-political year. The company also managed to keep total operating expenses (before depreciation, amortization, impairment, and loss on disposal of assets) at $598 million, which was below the low end of their expense guidance for the quarter.
Performance Highlights
Gray Television Inc (GTN.A, Financial) saw a year-over-year increase in core advertising revenue of 1%. The automobile advertising category showed a notable improvement with an 18% increase compared to the previous year. Political advertising revenues were also robust at $26 million, surpassing the corresponding quarter in 2019. The company has raised its full-year 2023 political advertising revenue forecast by 33% to at least $80 million, reflecting confidence in continued revenue growth.
Strategic partnerships and content distribution were also a focus for the quarter. Gray Television Inc (GTN.A, Financial) extended its agreement with the CW Network, enhancing its network affiliation at most legacy stations and commencing an affiliation with PeachtreeTV in Atlanta. Additionally, the company brought local basketball games back to its broadcast television stations in Arizona, expanding the local availability of professional sports.
Financial Tables Summary
The income statement for the three months ended September 30, 2023, shows a net loss of $40 million, a significant change from the net income of $108 million in the same period in 2022. This loss is attributed to a decrease in total broadcasting revenue by 12% and an increase in total broadcasting expenses by 4%. Despite this, the company's Broadcast Cash Flow remained positive at $229 million, although it was a 36% decrease from the previous year.
For the nine months ended September 30, 2023, Gray Television Inc (GTN.A, Financial) reported a net loss of $67 million, compared to a net income of $269 million in 2022. Total revenue for the nine months was $2,417 million, a 43% increase compared to 2021. Operating expenses for the same period were $1,664 million, up 51% from 2021.
Company Outlook and Guidance
Looking ahead to the fourth quarter ending December 31, 2023, Gray Television Inc (GTN.A, Financial) anticipates key financial results within certain ranges. The company expects to continue growing advertising revenues due to strong positions in local markets and the exceptional efforts of local station staff.
Gray Television Inc (GTN.A, Financial) also completed significant real estate developments, including the delivery of facilities to NBCUniversal in the Assembly Studios complex. The company is evaluating opportunities to unlock the value of this development and does not anticipate any material capital projects at Assembly Atlanta in 2024.
The company's financial health is further detailed in the provided financial tables, which include a comprehensive breakdown of revenues and expenses, as well as non-GAAP cash flow measures that are used to evaluate the company's performance and liquidity.
Conclusion
Gray Television Inc (GTN.A, Financial)'s third-quarter results demonstrate a strong revenue performance and effective expense management. The company's strategic initiatives in content distribution and real estate development position it for future growth. Investors and analysts can expect Gray Television Inc (GTN.A) to continue leveraging its market-leading local news and network programming to deliver value for advertisers and stakeholders.
For more detailed information, readers are encouraged to review the full earnings release and join the conference call scheduled for November 8, 2023, at 11:00 AM Eastern Time. The call will be webcast live and available for replay at www.gray.tv.
Explore the complete 8-K earnings release (here) from Gray Television Inc for further details.
