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.
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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.