Gray Television offered several comments with respect to its Q2 2017 guidance on Thursday, along with the release of its Q1 earnings results.
Unlike some broadcast radio companies, Gray is anticipating double-digit local ad revenue growth in Q2, along strong national ad revenue.
What’s the overall prognosis for the quarter, on a combined historical basis?
The almanac is a little less rosy for Gray.
Gray believes is total revenue in Q2 will be flat, or up as much as 2%.
At the same time, on a combined historical basis, Q2 ’17 local ad revenue will likely be flat, with Gray giving a range of -1% to +1%.
National is where Gray’s problems lie, as it believes its Q2 2017 national ad revenue will tumble by between 2% and 7%.
What’s saving Gray in Q2 is its retransmission consent revenue—it is forecast to increase by some 25% in the quarter.
Gray also predicts that its broadcast operating expenses will increase from Q2 2016, “reflecting the impact of 2017 acquisitions and 2016 acquisitions as well as anticipated increases in payroll and related employee benefits,” the company said.
Gray also anticipates that its broadcast operating expenses will also reflect increases in retransmission expense of approximately $9.9 million, to total approximately $34 million.
