ATLANTA, Nov. 07, 2025 (GLOBE NEWSWIRE) -- Gray Media, Inc. (“Gray,” “Gray Media,” “we,” “us” or “our”) (NYSE: GTN) today announced its financial results for the quarter ended September 30, 2025. We are pleased to report that our total revenue, core advertising revenue, retransmission revenue, and political advertising revenue all were at or exceeded the high-end of our previously issued guidance ranges for the quarter. In addition, our expenses were below the low-end of our guidance ranges. The quarter als ...

Financial Data and Key Metrics Changes - Total revenue in Q2 2025 was $772 million, a decrease of 7% from 2024, but 1% above the high end of original guidance for the quarter [6] - Adjusted EBITDA was $169 million in Q2 2025, a decrease of 25% from 2024 [7] - The company reported a net loss of $56 million in Q2 2025 compared to a net income of $22 million in 2024 [6] Business Line Data and Key Metrics Changes - Political advertising revenue was lower in 2024 but exceeded expectations in Q2 2025, generating $9 million compared to a guidance of $2-3 million [20] - Core advertising revenue was down about 3% versus 2024, with automotive down high single digits, while legal advertising grew double digits [18][19] - Digital revenue increased by 8%, and new local direct business grew over 2% in 2025 [19] Market Data and Key Metrics Changes - The company is entering new markets through acquisitions, including Lafayette, Louisiana, and Lansing, Michigan, which will enhance local news offerings [10][11] - The company expects to leverage new sales and sports strategies in the newly acquired markets [11] Company Strategy and Development Direction - The company is focused on M&A activities to strengthen its market presence and create duopolies, with recent transactions expected to be cash flow accretive [11][24] - The company aims to reduce debt and leverage, finishing Q2 2025 with a first lien leverage ratio of 2.99 times and total leverage of 5.6 times [12][23] - Future strategic focus will be on obtaining regulatory approvals for announced transactions and ensuring smooth transitions for stakeholders [12] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious tone among advertisers, particularly in the automotive sector, but saw stronger core activity than projected [18] - The company anticipates challenges in providing guidance for Q3 due to various market conditions, including the impact of the Olympics on advertising revenue [21] - Management expressed optimism about the future, highlighting the potential for significant cash flow generation from upcoming political cycles [66] Other Important Information - The company declared a quarterly dividend of $0.08 per share [13] - Significant progress was made in strengthening the balance sheet, with a reduction of $22 million in outstanding indebtedness during Q2 2025 [12] Q&A Session Summary Question: Comments on the balance sheet improvements - Management acknowledged the efforts in improving the balance sheet and expressed pride in the team's work [30][32] Question: Future M&A opportunities - Management indicated that while there are no current plans for additional transactions, they remain open to opportunities that arise [33][36] Question: Impact of CBS affiliation change on retransmission revenue - Management confirmed that the change in CBS affiliation would impact retransmission revenue, but emphasized ongoing efforts to create a sustainable model [90]

Core Viewpoint - Gray Media, Inc. has agreed to acquire Allen Media Group's television stations in ten markets for $171 million, which is expected to enhance Gray's market presence and create new duopolies in several regions [1][2]. Group 1: Transaction Details - The acquisition includes local television stations in three new markets: Columbus-Tupelo, Mississippi; Terre Haute, Indiana; and West Lafayette, Indiana, all of which had the highest all-day ratings in 2024 according to Comscore [2]. - The transaction is anticipated to close in the fourth quarter of 2025, pending regulatory approval and waivers of FCC local ownership rules [4]. Group 2: Market Impact - The acquisition will strengthen Gray's presence in seven other markets by creating new duopolies, allowing for enhanced local news, weather, and sports programming [2]. - Gray Media currently operates in 113 television markets, reaching approximately 37% of U.S. television households, with a significant number of top-rated stations [7]. Group 3: Company Background - Gray Media is the largest owner of top-rated local television stations and digital assets in the U.S., with a diverse portfolio that includes video production companies and digital marketing services [7]. - Allen Media Group, founded by Byron Allen, operates 28 network affiliate broadcast television stations and ten 24-hour HD television networks, serving nearly 300 million subscribers [8].

Group 1 - Gray Media, Inc. has agreed to acquire television stations from Block Communications, Inc. for $80 million, aiming to enhance its presence in the Midwest and create a Big Four duopoly in one market [1][3] - The acquisition includes WDRB and WBKI in Louisville, Kentucky, WAND in Springfield-Champaign-Decatur, Illinois, and WLIO in Lima, Ohio, all of which are top-rated local news stations in their respective markets [3][4] - Gray anticipates closing the transaction in the fourth quarter of 2025, pending regulatory approval and customary closing conditions [4] Group 2 - Gray Media is the largest owner of top-rated local television stations in the U.S., serving 113 television markets and reaching approximately 37% of U.S. television households [6] - The company operates in 78 markets with the top-rated television station and 99 markets with the first or second highest-rated station as of 2024 [6]

Financial Performance & Metrics - Gray reported $3.5 billion in Last Eight Quarters Annualized (L8QA) revenue[13] - The company's L8QA Operating Cash Flow was $1.1 billion, resulting in a 32% margin[13] - Gray's First Lien Leverage Ratio ranged from 2.4x to 2.6x between FY2021 and FY2023[67] - Total Debt was $6.21 billion in FY2023[68] Market Position & Reach - Gray Television is the nation's second-largest television broadcaster[12] - The company reaches 36% of total US television households[14] - Gray has 1 or 2 ranked local TV stations in 89% of its markets[13] - NextGen TV deployments reached nearly 24 million US TV households in early 2024, representing approximately 19% of the total[54] Revenue Streams & Growth - Big Four Network Programming contributed 30% of Gray's 2023 Television Ad Revenue[24] - Political Advertising Revenue increased by 38% in 2022 over the prior mid-term year of 2018[38, 43, 49] - Gray Digital Platforms transmitted 836 million video streams and attracted 10.7 billion page views with 1.25 billion monthly aggregate users in 2023[52] Strategic Initiatives - Gray has completed retransmission renewals representing more than 70% of its traditional MVPD subscriber footprint as of March 1, 2024[29]