Gray Television's Q4 2024: Discrepancies in Ad Growth, Network Fees, and Political Revenue Insights

These are the key contradictions discussed in Gray Television's latest 2024Q4 earnings call, specifically including: Core Advertising Growth Expectations, Network Affiliation Fees, and Political Advertising Revenue:



Revenue and Financial Performance:
- Gray Media reported total revenue of $1 billion for Q4 2024, an increase of 21% from the fourth quarter of 2023.
- Adjusted EBITDA reached $402 million, an increase of 86% from the fourth quarter of 2023, primarily driven by political advertising revenue.

Debt Reduction and Capital Allocation:
- The company reduced its total principal debt by $520 million during 2024, exceeding its initial goal of $0.5 billion.
- Gray maintained a focus on reducing leverage, achieving a total leverage ratio of 5.49x at the end of 2024.

Core Advertising Challenges and Political Impact:
- Core advertising revenue was expected to be down 7-8% in the first quarter of 2025 compared to the first quarter of 2024, due to economic uncertainty and hesitancy among advertisers during election seasons.
- Political advertising revenue, which reached $250 million in Q4 2024, had displaced core advertising revenue, impacting automotive advertising in particular.

Strategic Investments and Local Content Enhancements:
- Gray expanded its local sports content, securing rights to broadcast professional sports events across 75-80 markets by the end of Q1 2025.
- The company’s studios, Assembly Studios, are fully operational, producing shows like Garden Society and Beyond The Gates, contributing to revenue growth.