Television broadcast company Gray Television, Inc. (GTN) reported Monday a loss for the third quarter compared to a profit in the same period last year, due to a 20% fall in revenues hurt mainly by a drop in advertising revenues. The company also provided outlook for the fourth quarter and full year 2009.
The Atlanta, Georgia-based company's net loss available to common stockholders was $9.99 million or $0.21 per share, compared to a net income of $1.48 million or $0.03 per share in the same period previous year. Analysts polled by Thomson Reuters expected the company to report a loss of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.
The company said its results for the quarter were positively impacted by an agreement with Young Broadcasting Inc., effective August 10, 2009, by which Gray Television will provide consulting services and receive an annual payment of $2.2 million. The company expects to provide the services through December 31, 2012. Revenues, less agency commissions, for the quarter declined 20% to $66.45 million from $82.63 million in the prior year, mainly due to decreased local, national and political advertising revenue and decreased production and other revenue. Consulting revenue increased to $0.3 million due to the agreement with Young Broadcasting., the company said. Local advertising revenue decreased 11% to $41.1 million and National advertising revenue decreased 27% to $12.8 million. Local and national advertising revenues decreased as a result of reduced spending by advertisers due to the current economic recession. Internet advertising revenue remained relatively stable at $2.9 million, while Political advertising revenue dropped 76% to $3.1 million. Retransmission consent revenue surged 466% to $4.3 million, while Production and other revenue decreased 6% to $1.7 million. Operating income was $10.63 million, down from $20.51 million in the earlier year.
Interest expense grew 54% to $19.4 million from $12.63 million in the preceding year.
For the nine-month period, the company's net loss available to common stockholders was $33.66 million or $0.69 per share, compared to a net income of $717 thousand or $0.01 per share in the same period last year. Revenues, less agency commissions, for the period declined to $192.86 million from $232.37 million in the prior year.
Looking ahead to the fourth quarter, the company expects revenue, less agency commissions, to be in the range of $70 million - $71.50 million. Two analysts have consensus revenue estimate of $70.07 million for the quarter. Gray Television anticipates fourth quarter retransmission consent revenues to increase about $2.9 million to a total of nearly $3.7 million.
For the full year 2009, the company currently anticipates retransmission consent revenues to be about $15.7 million, compared to $3 million in the previous year. Further, the company currently expects full year broadcast operating expenses to decrease by about $14.5 million, or 7.3% from last year. GTN closed Friday's regular trading at $2.08 on the NYSE.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.