• by Wayne Friedman , March 16, 2009

Gray Television has good and bad news in the fourth quarter. The company slipped to a net loss of $206 million in the fourth quarter of 2008--due, in large part, to a $240.1 million writedown from its broadcast licenses.

Slipping valuations of media business--and many businesses--everywhere have stung recent financial results. In the fourth quarter of 2007, Gray had a $1.5 million net profit.

But Gray posted 12% higher total net revenue to $94.8 million, mostly from higher political and Internet advertising. Political advertising climbed to $27.4 million from $2.7 million and rose to $3.2 million from $600,000 in the previous period.

However, local and national advertising sales went in the other direction. Local ad sales efforts slipped 17% from the period before to $45 million and national ad revenues sank 24% to $16.1 million.

As with virtually all TV stations and networks, the automotive advertising category was to blame. The company expects similar problems in first-quarter 2009. Gray, however, said it will get better results because of local advertising sales from the Super Bowl.

Its 10 NBC affiliated stations are expected to take in $750,000--an increase from the approximate $130,000 of Super Bowl revenues earned in 2008 for its five Fox affiliated stations.

Fourth-quarter 2008 retransmission agreements with cable and satellite TV operators will give Gray between $15 million and $16 million, compared to the $3 million earned in 2008.

The company said its broadcast expenses decreased $1 million, or 2%, to $51.2 million.