Gray Media's Fourth Quarter Financial Results Exceeded Expectations

Core Insights - Gray Media, Inc. reported financial results for Q4 2024, with total revenue reaching $1.0 billion, a 21% increase from Q4 2023, and political advertising revenue soaring by 658% to $250 million [7][19] - The company achieved a net income of $156 million in Q4 2024, a significant turnaround from a net loss of $22 million in Q4 2023 [7][18] - For the full year 2024, Gray Media generated $497 million in political advertising revenue, the highest among peers, and reduced outstanding debt by $520 million [1][19] Financial Performance - Total operating expenses for Q4 2024 were $648 million, 2% below the low end of guidance [1] - Adjusted EBITDA for Q4 2024 was $402 million, an 86% increase from Q4 2023, primarily driven by political advertising revenue [7][18] - The company ended 2024 with a First Lien Leverage Ratio of 2.97 to 1.00 and a total Leverage Ratio of 5.49 to 1.00 [7][34] Strategic Developments - Gray Media enhanced local content offerings, optimized cost structure, and strengthened its balance sheet throughout 2024 [2] - In December 2024, the company entered agreements to receive approximately $35 million for leasing rights at its tower sites, retaining ownership and control of the sites [5] - Cost containment measures are expected to achieve or exceed an annual run-rate of $60 million during Q1 2025 [10] Future Guidance - For Q1 2025, core advertising revenue is anticipated to decline by approximately 7% to 8% compared to Q1 2024, influenced by the Super Bowl airing on different channels [9] - The company expects to see strong double-digit growth in digital advertising revenue and from local customers who have not previously purchased advertising [9] - Guidance for total revenue in Q1 2025 is projected to be between $764 million and $775 million [12]