TYSONS, Va. - In a move to broaden the reach of National Hockey League (NHL) broadcasts, TEGNA Inc. (NYSE: NYSE:TGNA) and Gray Media (NYSE: GTN) have announced a partnership that will bring Seattle Kraken games to viewers in Alaska. Starting with the 2024-2025 season, Gray's KAUU in Anchorage and KYEX in Juneau will broadcast approximately 70 regular-season Kraken games each year, free over-the-air.
The expansion into Alaska marks a significant step in TEGNA's strategy to deliver more games to a wider audience. Brad Ramsey, TEGNA's senior vice president of media operations, expressed excitement over the growth of the broadcast network and the positive response from advertisers and sponsors in the Pacific Northwest. The partnership with Gray Media will extend the Kraken's presence beyond the continental United States, where TEGNA already broadcasts games in Seattle, Portland, and Spokane.
Jeff Webster, the Seattle Kraken's chief commercial officer, emphasized the importance of maintaining the team's relationship with the hockey community in Alaska. The broadcast expansion is seen as a commitment to making Kraken hockey accessible to fans in the region. Gray Media's chief operating officer, Sandy Breland, also highlighted the cultural significance of the partnership for Pacific Northwest viewers and fans.
The Seattle Kraken, which launched as the NHL's 32nd franchise in 2021, will begin the 2024-25 season with a home opener against the St. Louis Blues on October 8 at Climate Pledge Arena. The team welcomes new head coach Dan Bylsma and assistant coaches Bob Woods and Jessica Campbell, the latter making history as the NHL's first full-time female assistant coach.
In other recent news, Gray Television (NYSE:GTN) has made significant strides in its financial operations and leadership structure. The company recently amended its $300 million accounts receivable securitization facility, a move aimed at maintaining financial flexibility. The amendment included changes to certain ratios related to the receivables.
In a push towards digital innovation, Gray Television has promoted three executives to new roles. Mike Braun has been appointed Senior Managing Vice President, Claire Magee Ferguson will serve as Vice President, Assistant General Counsel, and Senior Technology Counsel, and Lee Zurik will take the role of Senior Vice President of News Strategy and Innovation.
In terms of financial strategy, Gray Television has upsized its private offering to $1.25 billion in senior secured first lien notes due 2029. This move is part of the company's plan to refinance its $1.2 billion tranche E term loan due in 2026.
The company also plans to engage in a series of financial maneuvers, including incurring a new tranche F term loan of up to $750 million and increasing its existing revolving credit facility commitments by $55 million.
For Q1 2024, Gray Television reported a substantial increase in net income and adjusted EBITDA, with net income attributable to common shareholders rising to $75 million, or $0.79 per diluted share, and adjusted EBITDA growing by 21% to $197 million.
InvestingPro Insights
As TEGNA Inc. and Gray Media (NYSE: GTN) join forces to bring Seattle Kraken games to Alaska, Gray Media's financial metrics and analyst expectations provide a broader context for investors. The company currently has a market capitalization of $481.7 million and is trading at a low Price / Book multiple of 0.25 as of the last twelve months ending in Q1 2024. This valuation metric may attract investors looking for potentially undervalued stocks.
Despite recent revenue declines, with a -9.51% change in the last twelve months as of Q1 2024, Gray Media offers a substantial dividend yield of 6.26%, a significant return for shareholders. This commitment to returning value to investors aligns with the company's strategy to expand its broadcast reach and may reassure investors looking for stable income streams.
InvestingPro Tips highlight that Gray Media is expected to see net income growth this year, with analysts predicting the company will become profitable within the same timeframe. This forward-looking optimism is complemented by the fact that Gray Media's liquid assets exceed its short-term obligations, suggesting a solid financial position for tackling upcoming initiatives, such as the NHL broadcast expansion.
For those interested in a deeper dive into Gray Media's financial health and future prospects, there are additional insights available on InvestingPro. Subscribers can access a full suite of data and analysis, including more InvestingPro Tips to help guide investment decisions. To get up to the minute information and take advantage of these expert insights, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 8 more InvestingPro Tips available for Gray Media, offering a comprehensive look at the company's potential.
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