Gray Television Reports Drop in Q2 Profit

Aug 8, 2005  •  Post A Comment

Gray Television, the Atlanta-based station group that owns 31 television stations, reported Monday a 72 percent drop in second-quarter profit, as the company suffered from the absence of political advertising in the period.

Revenue slipped 3 percent to $81.5 million, as the decline at the company’s television stations was partially offset by a 5 percent gain at the company’s publishing and wireless units.

Political revenue tumbled to just $687,000 in the second quarter, from $5.4 million a year ago, while local advertising revenue advanced 7 percent largely due to the company’s launch of four new UPN channels on Gray’s digital spectrum in four of the company’s existing television markets, as well as the results of WCAV-TV, a new station that went on the air a year ago in Charlottesville, Va.

The results come a week after Gray announced that it was spinning off its publishing and wireless businesses and combining those operations with an affiliated sports-marketing company based in Atlanta. The company expects to complete the transaction by the end of October.