Gray Television recorded a sharp loss in the second quarter related to the redemption of outstanding debt and lower advertising revenue.
Revenues in the quarter decreased 2% to $79.75 million from $81.4 million in the same quarter a year ago on the back of a 44% drop in political advertising revenue and a 7% drop in national advertising. Operating income dropped 29% to $16.9 million from $23.7 million a year ago as broadcasting expenses in the quarter rose by 8%.
Gray took a $16.4 million charge in the quarter for the extinguishment of debt, leading to a net loss of $10.8 million versus a $3.5 million profit in Q2 2006.
The company’s full year 2007 revenue guidance is in the $74 million to $75.5 million range, or a 6-8% decrease from full year 2006 results.