Gray hitting on all cylinders during Q2
The political category is being very kind to television groups with holdings in battleground areas, and Gray is one of them. The category, along with increased retransmission consent income, propelled the company to a record-breaking Q2.
What’s more, Gray is expecting a big 3rd quarter, and that’s not even looking at the possible political windfall. It’s expecting a gain of 6%-8% in local, a gain of 17%-18% in national, both excluding political income, and a 62% increase in retransmission consent fees.
“We are pleased with our operating results for the second quarter of 2012,” noted Gray in a statement. “Our period over period increase in revenue for the second quarter was primarily due to increases in political advertising revenue and retransmission consent revenue. In addition, our local advertising, national advertising, internet advertising and other revenue also increased.”
Gray continued, “Our total revenue for the second quarter of 2012 was the highest revenue Gray has reported for a second quarter. Total revenue increased $18.5 million, or 24%, to $94.7 million for the second quarter of 2012 compared to the second quarter of 2011 due primarily to increased political advertising, retransmission consent, local advertising, national advertising, internet advertising, and other revenue. Political advertising revenue increased due to increased advertising from political candidates and special interest groups in the ‘on year’ of the two-year election cycle. Our political advertising revenue also increased due to additional advertising related to a special election to recall the Governor of Wisconsin, where we own three television stations.”
Highlights of the quarter included:
* Local advertising revenue increased $0.6 million, or 1%, to $48.4 million.
* National advertising revenue increased $0.9 million, or 7%, to $14.3 million.
* Internet advertising revenue increased $1.5 million, or 31%, to $6.4 million.
* Political advertising revenue increased $10.8 million, or 467%, to $13.1 million.
* Retransmission consent revenue increased $3.2 million, or 64%, to $8.3 million.
* Other revenue increased $1.4 million, or 65%, to $3.6 million.
* Consulting revenue from our agreement with Young remained at $0.6 million in the second quarter of 2012.