ATLANTA - Gray Television, Inc. (NYSE: NYSE:GTN) disclosed its financial outcomes for the first quarter of 2024, indicating a total revenue of $823 million and operating expenses of $632 million before depreciation, amortization, and asset disposal losses.
The company observed a 4% year-over-year increase in core advertising revenue, totaling $372 million, attributing the growth to strong advertiser demand for local content, including professional sports broadcasts.
The broadcaster also highlighted its recovery from the pandemic, with core advertising revenues surpassing pre-pandemic levels by 3%. The first quarter's advertising revenue was boosted by approximately $18 million from the Super Bowl broadcast on its 54 CBS channels, compared to $6 million from its 27 FOX channels during the same period in 2023.
Gray Television's net income attributable to common stockholders rose significantly to $75 million, or $0.79 per fully diluted share, a stark contrast to a loss of $44 million, or $0.48 per share, in the first quarter of 2023. Adjusted EBITDA also saw a 21% increase to $197 million.
On the financial management front, the company reported the completion of a sale that brought in $110 million in pre-tax cash proceeds and the use of a portion of these proceeds to pay off its Revolving Credit Facility. Furthermore, Gray Television voluntarily prepaid an additional $50 million of its term loans with cash on hand.
The company's Board of Directors authorized a debt repurchase program up to $250 million through December 31, 2025, though the timing and amount will depend on market conditions and other factors.
Guidance for the second quarter of 2024 anticipates political advertising revenue to surge between 55% and 72% compared to the second quarter of 2020. The company remains cautious, however, as it has not provided full-year guidance for political advertising revenue.
Gray Television operates as a multimedia company and is the largest owner of top-rated local television stations in the United States. The information in this article is based on a press release statement from the company.
InvestingPro Insights
Gray Television, Inc. (GTN) has demonstrated resilience with its first-quarter financial results for 2024, showcasing a significant recovery in net income and core advertising revenue. According to InvestingPro data, Gray Television has a market capitalization of $676.18 million, with a Price / Book ratio for the last twelve months as of Q4 2023 at a low 0.34, suggesting that the stock may be undervalued relative to its assets.
This aligns with one of the InvestingPro Tips indicating that GTN is trading at a low Price / Book multiple.
InvestingPro Tips also reveal that net income is expected to grow this year, which is consistent with the company's positive financial trajectory as seen in the reported net income increase to $75 million in Q1 2024. Still, analysts have shown some caution, with 2 analysts revising their earnings downwards for the upcoming period. Despite this, the company's stock has seen a significant return over the last week, with a 1 Week Price Total Return as of the date provided at 15.83%.
Investors looking to delve deeper into Gray Television's performance and prospects can find additional insights and tips on InvestingPro. With 7 more InvestingPro Tips available, including analysis on profitability and liquidity, investors can make more informed decisions. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/GTN.
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