Gray Profits Take Tumble in Third Quarter

Nov 7, 2005  •  Post A Comment

Gray Television said Monday that its third-quarter profit tumbled 85 percent to $1.7 million from a year-earlier figure of $11.8 million. Total revenue for the quarter fell 13 percent to $75.1 million.

A major factor in the declines was the absence of political advertising in the quarter. The company said it booked nearly $450,000 in political advertising, compared with a year-earlier figure of $12 million. In addition, the company didn’t book $3.1 million in Olympics revenue this year, as it had in 2004.

Despite the declines, company officials said during their third-quarter earnings conference call that they are bullish on the prospects for 2006 due to the Winter Olympics and by Gray’s presence in eight of 15 states described as battlegrounds for political races.

What’s more, Gray said it was able to offset the loss of political and Olympics revenue with advertising revenue from its launch of six UPN digital channels in markets where it already owns a traditional station. The company said the stations generated $885,000 in ad revenue in the quarter.