As good as Q1 was for Gray Television, this election year is just beginning. What does the company see ahead?
“Based on our current forecast, we currently believe our second quarter of 2012 local revenue, excluding political advertising revenue, will increase from the three months ended June 30, 2011 (the “second quarter of 2011”) by approximately 3% to 4%. We currently believe our second quarter of 2012 national revenue, excluding political advertising revenue, will increase from the second quarter of 2011 by approximately 10%,” Gray told Wall Street.
“We anticipate our second quarter of 2012 internet revenue, excluding political advertising revenue, will increase from the second quarter of 2011 by approximately 22%,” it continued.
“We anticipate our second quarter of 2012 retransmission consent revenue will increase from the second quarter of 2011 by approximately 60% to approximately $8.1 million. We anticipate that our full year 2012 retransmission consent revenue will range between approximately $33.0 million and $33.5 million,” said Gray’s guidance.
“We estimate our base consulting revenue will be $0.6 million for the second quarter of 2012. We do not anticipate recording any incentive consulting revenue in the second quarter of 2012,” the company added.
By the numbers, that means that Q2 operating revenues should be up 13-14% in a range of $85.8-86.5 million. Within that, political ad revenues are projected to be up 116-137% to $5.0-5.5 million.
Broadcast operating expenses are projected to rise 8-10% in a range of $52-52.5 million. Corporate and administrative expenses are expected to increase 12-18% to $3.8-4.0 million.
One important side note from the company’s Wall Street conference call: Gray President and COO Bob Prather confirmed that efforts by NBC and its affiliates to work out a group strategy for negotiating retransmission consent deals with satellite/cable operators is “off the table.”
