Gray Media raises Q2 revenue forecast, plans $29 million impairment charge

ATLANTA - Gray Media, Inc. (NYSE:GTN), currently trading at attractive valuation multiples according to InvestingPro data, on Tuesday raised its second-quarter revenue guidance and announced plans to record a $29 million non-cash impairment charge related to its Atlanta station WANF.

The multimedia company, which has delivered an impressive 39% return over the past six months and offers a 6.77% dividend yield, now expects total revenue between $826 million for the quarter ended June 30, up from $775 million in the same period last year, according to a press release statement.

The improved outlook is primarily driven by political advertising revenue, which is projected to reach $47 million compared to $9 million a year earlier. Core advertising revenue is forecast at $373 million, up from $362 million in the second quarter of 2024.

The company plans to record a non-cash impairment charge of approximately $29 million in the second quarter, related to WANF in Atlanta. The charge stems from the station’s upcoming transition from a CBS network affiliate to an independent station effective August 16.

Gray Media noted that the impairment is not expected to materially impact ongoing operations or liquidity.

During June, the company repurchased $7.7 million of its outstanding 5.875% senior notes due 2026. It also made amortization payments totaling $15 million on term loans that satisfy all required mandatory obligations through December 31.

Gray Media operates television stations in 113 markets reaching approximately 37 percent of U.S. television households. The company owns the top-rated television station in 78 markets and the first or second highest-rated station in 99 markets.

The company cautioned that the guidance has not been subject to normal financial closing processes, and actual results could differ materially.

In other recent news, Gray Media announced its financial results for the first quarter of 2025, reporting a narrower loss than anticipated. The company posted an earnings per share of -$0.23, surpassing the forecasted -$0.43, and revenue reached $782 million, slightly above the projected $773.05 million. Additionally, Gray Media revealed plans to offer up to $750 million in senior secured second lien notes, aiming to use the proceeds to redeem outstanding senior notes and repay part of its term loan. In a strategic move, Gray Media and The E.W. Scripps Company agreed to swap television stations across five markets, allowing both companies to create new duopolies. Furthermore, Gray Media renewed its affiliation agreements with CBS for 52 of its network stations, although its Atlanta station WANF will end its CBS affiliation in 2025 to focus on local content. In leadership changes, Shannon Booth was appointed as the new General Manager of WOWT in Omaha, Nebraska, while Jacque Harms will take over as General Manager of Gray’s stations in Lincoln and North Platte, Nebraska. These developments reflect Gray Media’s ongoing efforts to optimize its operations and strengthen its market presence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.