• by Wayne Friedman , November 8, 2016

Mid-size TV station group Gray Television reported strong overall third-quarter revenue -- but political advertising posted weaker-than-expected results.

Gray said political advertising was just $22.3 million, up from $17.7 million in the third quarter a year ago. While the company said these results were a record, they were also disappointing.

“Earlier this year, a large number of races were expected to be highly competitive and political fundraising appeared to be highly encouraging through the summer,” stated Hilton H. Howell Jr., chairman/CEO of Gray. “However, actual spending by candidates, political parties and third-parties fell far short of expectations, especially in Gray’s markets.”

Midday Tuesday trading of the Atlanta-based Gray Television was sharply down 9.5% to $7.40.

Gray’s local advertising revenue -- which includes all digital media -- grew 22%, to $102.2 million; national spot advertising revenue also rose 22% to $25.4 million. Gray’s retrans revenue increased grew 30%, to $51.1 million.

Breaking down its core-advertising segments, excluding acquired TV station deals, automotive inched up 1%; medical declined 5%; restaurant marketers sank 5%; furniture/appliance advertisers grew 6%; with home improvement advertising was 11% higher.

Overall, Gray’s third-quarter revenue was up 35% to $204.5 million. The company posted a net loss of $213,000.