Grey TV Reports Uptick In Local Advertising

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Although admittedly an "off year," mid-size Atlanta-based Gray Television claimed decent mid-single-digit percent increases in its advertising results for the second quarter. 

Local advertising, its biggest ad area, perked up 4% or $1.9 million to $47.8 million -- all due to improved overall economic advertising conditions. But national spot advertising sales, primarily sold by big national spot ad representatives for TV stations, declined 3% or $400,000 to $13.4 million. The company said that was because of lower spending by automotive and financial/insurance customers.

The company stated: "Our total revenue increased for the second quarter of 2011 when compared to the second quarter of 2010 even though 2011 is an "off year" in the two-year political election cycle. For the second quarter of 2011, our operating results exceeded our initial estimates."

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Internet advertising revenue, Gray's third-biggest advertising component, improved $1.7 million, or 56%, to $4.9 million. Political advertising revenue declined -- from the big run-up all stations witnessed in 2010 -- by $3.3 million, or 59%, to $2.3 million.

Other non-advertising revenue generators did improve: Retransmission consent revenue climbed $400,000 or 8%, to $5.1 million. Gray says it was due to stations gaining cable subscribers. Production and other revenue gained $200,000 million, or 9%, to $2.0 million.

Net income grew five-fold to $2.6 million, with revenue inching up to $76.2 million versus $75.2 million.

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