Gray Media (GTN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $826 million, up 2% year-over-year, with net income of $22 million versus $4 million in Q2 2023; six-month revenue was $1.65 billion, with net income of $110 million, aided by a $110 million BMI sale gain.

• Adjusted EBITDA for Q2 2024 was $225 million, essentially flat year-over-year; six-month Adjusted EBITDA was $422 million, up 8%.

• Core advertising revenue was $373 million, down 2% year-over-year, while political advertising surged 292% to $47 million.

• The company completed significant refinancing, extending debt maturities to 2029 and increasing the revolver to $680 million.

• Management expects full-year 2024 revenues to be lower than previously anticipated due to macroeconomic factors, but political and digital revenues are expected to remain strong.

Financial highlights

• Total revenue for Q2 2024 was $826 million, up 2% year-over-year; six-month revenue was $1.65 billion, up 2%.

• Net income for Q2 2024 was $22 million, up from $4 million in Q2 2023; six-month net income was $110 million, compared to a loss of $27 million.

• Adjusted EBITDA for Q2 2024 was $225 million; six-month Adjusted EBITDA was $422 million.

• Political advertising revenue rose 292% in Q2 2024 to $47 million; core advertising declined 2% to $373 million.

• Retransmission consent revenue fell 6% year-over-year in Q2 2024.

Outlook and guidance

• Full-year 2024 core ad revenue guidance reduced to $1.525 billion; retransmission revenue guidance lowered to $1.475 billion.

• Q3 2024 core ad revenue expected to be flat to up low single digits year-over-year, aided by the Olympics.

• Political ad revenue for Q3 2024 expected between $180 million and $200 million; full-year political ad revenue to be strong.

• Routine capital expenditures for the remainder of 2024 expected to be $54–$64 million, with an additional $21 million for Assembly Atlanta.

• Leverage expected to decline to low-to-mid 5x by year-end, contingent on political cash flow.