Gray TV Reports 24% Revenue Gain in Quarter

Record numbers for broadcaster, thanks to political, retrans, Internet cash

Gray Television reported second quarter revenue of $94.7 million, up 24% from the same quarter a year ago. It represented the highest revenue Gray has reported for a second quarter.

"Our period-over-period increase in revenue for the second quarter was primarily due to increases in political advertising revenue and retransmission consent revenue," Gray said in a statement. "In addition, our local advertising, national advertising, Internet advertising and other revenue also increased."

Besides spending from the presidential candidates, Gray said it benefited from advertising "related to a special election to recall the governor of Wisconsin, where we own three television stations."

A significant portion of the group's retransmission consent contracts expired at the end of 2011, and "we were able to renew substantially all of these contracts under terms more favorable to Gray," said the company.

Gray continues to earn consulting revenue from an agreement with Young Broadcasting, which expires on Dec. 31, 2012. That was good for $.6 million in the second quarter.

Local advertising revenue increased 1% in the second quarter. National ad revenue increased 7%, and Internet revenue increased 31%.

Gray anticipates revenue going up 28-31% in the third quarter. Excluding the political windfall, it forecasts a 6-8% core revenue increase.