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Dec 31, 2024
Gray Television Q4 2024 Earnings Report
Gray Media's Q4 2024 financial results exceeded expectations, with revenue increasing and net income turning positive.
Key Takeaways
Gray Media reported a strong fourth quarter with a 21% increase in total revenue, driven by significant growth in political advertising revenue. The company also reduced its outstanding debt and improved its leverage ratio. Net income attributable to common stockholders was $156 million, a significant turnaround from the previous year's net loss.
Total revenue increased by 21% to $1.0 billion compared to Q4 2023.
Political advertising revenue surged by 658% to $250 million due to the on-year of the two-year political advertising cycle.
Net income attributable to common stockholders was $156 million, compared to a net loss of $22 million in Q4 2023.
Adjusted EBITDA increased by 86% to $402 million, primarily driven by the increase in political advertising revenue.
Revenue by Segment
Forward Guidance
For the first quarter of 2025, the company anticipates that core advertising revenue will be down approximately 7% to 8% compared to the first quarter of 2024, due in part to the Super Bowl airing on FOX channels in 2025 compared to CBS channels in 2024. Excluding Super Bowl and Leap Day, the company's core advertising revenue guide for the first quarter 2025 is down 3% to 5%.
Positive Outlook
- Super Bowl advertising revenue on FOX channels increased to $9 million in 2025, compared to $6 million on FOX channels in 2023.
- The company is continuing to see strong double-digit growth on a year-over-year basis in digital advertising revenue and from local customers who previously have not purchased advertising from them.
- The cost containment measures announced in November 2024 will achieve or exceed the anticipated annual run-rate of $60 million during the current quarter.
- The company anticipates receiving additional net reimbursements of approximately $25 million in 2025 related to capital expenditures at Assembly Atlanta development.
- The company's current authorization to repurchase additional debt in the open market is $250 million.
Challenges Ahead
- Core advertising revenue will be down approximately 7% to 8% compared to the first quarter of 2024, due in part to the Super Bowl airing on FOX channels in 2025 compared to CBS channels in 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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