Gray Media (GTN) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $1.045 billion, up 21% year-over-year, with net income of $156 million versus a $22 million loss in Q4 2023.

• Adjusted EBITDA for Q4 2024 was $402 million, up 86% year-over-year, driven by strong political advertising.

• Debt reduction was a priority, with $520 million in principal repaid in 2024, surpassing the $500 million goal.

• Major operational highlights included new sports rights, successful studio productions, and expanded digital content.

• Gray Media owns 113 television markets, reaching 37% of US TV households, with leading ratings in 78 markets and a strong Telemundo affiliate presence.

Financial highlights

• FY2024 total revenue was $3.281 billion, down from $3.539 billion in FY2023.

• Net income for 2024 was $375 million, compared to a net loss of $76 million in 2023.

• Adjusted EBITDA for 2024 was $1.162 billion, up from $816 million in 2023.

• Political ad revenue in Q4 was $250 million, with full-year political ad revenue at $497 million, the highest among peers.

• Digital core ad revenue grew 17% year-over-year in 2024, surpassing core national ad revenue for the first time.

Outlook and guidance

• Core advertising revenue for Q1 2025 expected to decline 7%-8% year-over-year, mainly due to economic uncertainty, Super Bowl network mix, and one less billing day.

• Excluding Super Bowl and leap day, core ad revenue guide is down 3.3%-5% from Q1 2024.

• Expense growth targeted below inflation, with potential for negative growth in 2025 and $60 million in annual run-rate cost savings expected by end of Q1 2025.

• Encouraging signs for core ad growth in the second quarter and beyond.

• Additional $25 million in reimbursements anticipated in 2025 for Assembly Atlanta capital expenditures.