ATLANTA - Gray Media Group Inc. (NYSE: GTN) announced today the retirement of two of its veteran broadcasters. Laura Long, General Manager of KNOE in Monroe, Louisiana, is stepping down effective today. Rick Dean, General Manager of KXII in Sherman, Texas, will retire at the end of the year on December 31, 2024.
Laura Long's career in television spans 35 years, beginning in Monroe after graduating from the University of Louisiana Monroe. She has held various roles in sales and management, including VP/Station Manager/Director of Sales and ultimately VP/General Manager at WTOG in Tampa. Long returned to Monroe in 2014 to lead KNOE and has since been credited with fostering a culture of learning and contributing to the station's market-leading position.
Rick Dean began his media career in 1979 at an Oklahoma City radio station, eventually transitioning into television with KXII-TV in 1985. Over the years, Dean has been instrumental in the station's success, earning multiple awards from broadcasting associations and mentoring team members throughout his 45-year career.
Gray Media's Chief Operating Officer, Sandy Breland, expressed gratitude for Long and Dean's dedication and contributions to the company and the communities they served. The company has stated it will conduct a thorough search for qualified successors to continue the legacy of leadership at these stations.
Gray Media, headquartered in Atlanta, Georgia, is the largest owner of top-rated local television stations in the United States. The company's extensive portfolio includes digital assets, video production companies, and studio production facilities, reaching approximately 36 percent of U.S. television households.
This news is based on a press release statement from Gray Media.
In other recent news, Gray Media has announced comprehensive coverage plans for the 2024 Democratic National Convention. This coverage will be provided by the company's Washington DC Bureau and news teams from 13 Gray affiliates. The initiative aims to deliver substantial coverage with a unique local perspective to Gray's 113 markets across the United States.
In terms of financial developments, Gray Media reported a 2% rise in revenue, totaling $826 million in the second quarter of 2024. Net income reached $22 million, and adjusted EBITDA was reported at $225 million. Despite core advertising revenue falling slightly short of expectations, political advertising surged by 62% compared to the same period in 2020, reaching $47 million.
However, a Benchmark analyst has recently lowered the price target for Gray Television (NYSE:GTN) shares amid revenue concerns, adjusting it from $13 to $11. This adjustment is due to disappointing retransmission revenue guidance and a reduction in overall revenue forecasts. Yet, the company's recently refinanced debt continues to trade close to its full value, indicating a more optimistic view of the company's cash flow from bondholders.
These are recent developments for Gray Television. The company is working to reduce retransmission consent fees with major networks such as ABC, CBS, and FOX over the next 18 months. Despite a downward adjustment in full-year revenue guidance due to lower-than-anticipated core and retransmission revenues, Gray Television remains focused on debt reduction and leveraging significant free cash flow for debt repayment.
InvestingPro Insights
As Gray Media Group Inc. (NYSE: GTN) bids farewell to two of its veteran broadcasters, investors might be interested in the company's financial health and market position. According to InvestingPro data, Gray Media Group has a market capitalization of $521.68 million, reflecting its significant presence in the U.S. television market.
Despite the leadership changes, the company maintains a strong dividend yield of 5.99%, which could be attractive to income-focused investors. This aligns with an InvestingPro Tip highlighting that Gray Media Group "pays a significant dividend to shareholders."
Another InvestingPro Tip notes that the company is "trading at a low Price / Book multiple," with the current Price / Book ratio standing at 0.26. This could suggest that the stock is undervalued relative to its assets, potentially offering a value opportunity for investors.
It's worth noting that Gray Media Group's revenue for the last twelve months as of Q2 2024 was $3,316 million, with a gross profit margin of 27.99%. While the company faces some challenges, as evidenced by a 7.76% revenue decline over the same period, it remains profitable, which is consistent with another InvestingPro Tip stating that "analysts predict the company will be profitable this year."
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of Gray Media Group's financial position and future prospects.
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