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ATLANTA - Gray Media (NYSE: GTN) has announced its extensive coverage plans for the 2024 Democratic National Convention, which starts today and runs until Thursday, August 22. The company's Washington DC Bureau, along with news teams from 13 Gray affiliates, will provide reports from Chicago, focusing on the local impact of the presidential and vice presidential nomination process and the Democratic party platform.
Gray Media's Chief Operating Officer, Sandy Breland, stated that the coverage would be available on Gray's local affiliates and Local News Live, the company's national news network. Local News Live offers live streaming coverage on over 500 Gray station websites, connected TV apps, and mobile apps. This initiative aims to deliver substantial DNC coverage with a unique local perspective to Gray's 113 markets across the United States.
Journalists from all Gray-owned Wisconsin news operations will be present at the convention, including teams from WMTV in Madison, WBAY in Green Bay, WEAU in Eau Claire, WSAW in Wausau, and KBJR in Superior (Duluth). Additional crews from Gray affiliates in Atlanta, Phoenix, South Bend, Honolulu, Burlington (NYSE:BURL), Rochester, Mankato, and Fargo will also provide daily coverage.
Lisa Allen, General Manager of Gray's Washington Operation, emphasized the company's commitment to covering significant stories through a local lens. With a presence in more than 100 markets, Gray's teams aim to provide comprehensive news coverage through Election Day.
Gray Media, headquartered in Atlanta, Georgia, is the largest owner of top-rated local television stations and digital assets in the nation. It serves 113 television markets, reaching approximately 36 percent of US television households. The company's portfolio boasts 77 markets with the top-rated television station and 100 markets with the first or second highest-rated television station. It also includes the largest Telemundo Affiliate group, covering 43 markets and reaching nearly 1.5 million Hispanic TV households.
In addition to local television stations, Gray owns Gray Digital Media, a digital marketing agency, as well as video production companies, studio production facilities, and a majority interest in Swirl Films. The company's coverage plans for the Democratic National Convention are based on a press release statement.
In other recent news, Gray Television (NYSE:GTN) has experienced a series of developments. According to recent earnings reports, the company saw a 2% rise in revenue, totaling $826 million in the second quarter of 2024. In the same period, net income reached $22 million, and adjusted EBITDA was reported at $225 million. Despite core advertising revenue falling slightly short of expectations, political advertising surged by 62% compared to the same period in 2020, reaching $47 million.
However, Benchmark analyst has recently lowered the price target for Gray Television shares amid revenue concerns, adjusting it from $13 to $11. This adjustment is due to disappointing retransmission revenue guidance and a reduction in overall revenue forecasts, with the company experiencing a projected 5% decrease in 2024 EBITDA. Yet, the company's recently refinanced debt continues to trade close to its full value, indicating a more optimistic view of the company's cash flow from bondholders.
These are recent developments for Gray Television. The company is working to reduce retransmission consent fees with major networks such as ABC, CBS, and FOX over the next 18 months. Although the full-year revenue guidance was adjusted downward due to lower-than-anticipated core and retransmission revenues, Gray Television remains focused on debt reduction and leveraging significant free cash flow for debt repayment.
InvestingPro Insights
As Gray Media (NYSE: GTN) gears up for comprehensive coverage of the Democratic National Convention, investors and industry observers are closely monitoring the company's performance metrics. According to InvestingPro data, Gray Media currently boasts a market capitalization of $472.92 million, reflecting its standing in the industry. Despite a challenging environment, the company has managed to maintain a Price / Book ratio of 0.23 as of the last twelve months leading up to Q2 2024, indicating that its stock may be undervalued relative to its assets.
InvestingPro Tips highlight that Gray Media is expected to see net income growth this year, suggesting potential upside for investors. Moreover, the company's stock has experienced a significant return over the last week, with a 10.14% price total return, signaling a positive short-term investor sentiment. These insights are particularly relevant as Gray Media undertakes the high-profile task of covering the Democratic National Convention, which may further influence the company's stock performance.
For investors seeking a deeper dive into Gray Media's prospects, InvestingPro offers additional tips and detailed analysis. Currently, there are 14 more InvestingPro Tips available for GTN, providing a comprehensive perspective on the company's financial health and market position. Interested readers can explore these valuable insights at https://www.investing.com/pro/GTN.
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