Gray Television isn’t the only broadcast TV company to greatly benefit from boffo political advertising revenue in the final three months of 2020.
The owner of such stations as NBC affiliate WDIV-4 in Detroit and CBS affiliate WKMG-6 in Orlando enjoyed a big revenue increase in Q4 for its television broadcasting division.
The reason: A big political revenue gain.
With President/CEO Emily Barr at the helm, Graham Media Group saw its revenue grow to $525.2 million in 2020, from $463.5 million in 2019.
For Q4, revenue increased 42% to $175.2 million, from $123.5 million in the final three months of 2019.
The revenue increase is directly tied to a whopping $50.3 million increase in political advertising revenue.
There’s also a $5.2 million increase in retransmission revenues.
These gains helped Graham see its operating income in Q4 grow to $82.4 million, from $35.8 million. Also aiding in the increase: 2019 intangible asset impairment charge,
partially offset by higher network fees.
While the postponement of the 2020 Summer Olympics, the reduction and uncertainty surrounding broadcast sporting events, and overall reduced advertising demand related to the COVID-19 pandemic adversely impacted advertising revenue and the operating results at the television broadcasting division, Graham says local and national advertising revenues have improved steadily through 2020 since the onset of the pandemic.
Operating expenses rose to $92.82 million, from $87.63 million.
