ATLANTA – Gray Television, Inc. (NYSE: ) has renewed its network connectivity agreements with The Walt Disney Company (NYSE: ) for all of its ABC affiliate stations in 25 markets through December 31, 2028. This extension continues a long-standing partnership, allowing Gray’s ABC affiliates to maintain delivery of local and network content to their communities. According to InvestingPro data, Gray Television currently trades at a P/E ratio of 1.95, indicating a potential undervalue relative to its peers.
This was announced today by Gray’s President and Co-CEO, Pat LaPlatney, who expressed his satisfaction with the continued collaboration, noting the affiliates’ commitment to public service. Susi D’Ambra-Coplan, senior vice president of partner relations at The Walt Disney Company, also highlighted the mutual commitment to providing quality programming and local services.
The agreement covers a diverse range of markets, including the Tampa-St. Pete (Sarasota), Green Bay-Appleton, Toledo, Springfield, MO, Cedar Rapids, Reno, Tyler-Longview, Ft. Wayne, Sioux Falls, Springfield-Holyoke, MA, Peoria, Columbus (WA:), GA-Opelika, AL, Monroe-El Dorado, Wichita Falls & Lawton, Albany, GA, Biloxi-Gulfport, Gainesville, Hattiesburg-Laurel, Rapid City, Harrisonburg, Jonesboro, Bowling Green, Laredo and Grand Junction – Montrose.
Gray Television, headquartered in Atlanta, Georgia, is a major multimedia company and the largest owner of top-rated local television stations and digital assets in the United States. The company’s reach includes approximately 36 percent of US television households, with a presence in 113 television markets. With EBITDA of $946 million and annual revenue of $3.46 billion, Gray maintains a strong market position. The company offers shareholders a significant dividend yield of 10.63%. In addition to his television stations, Gray owns Gray Digital Media, a digital marketing agency, and has interests in various video production companies and studio facilities. InvestingPro subscribers have access to 13 additional key insights and a comprehensive Pro Research Report that provides an in-depth analysis of Gray Television’s financial health and market position.
This strategic move ensures that Gray’s ABC affiliates will continue to deliver broadcast television, news and sports programming alongside their local offering, strengthening their service to the public. With a healthy current ratio of 1.13, the company maintains sufficient liquidity to support its operations. Information for this article is based on a press release from Gray Television, Inc. For detailed financial analysis and future growth prospects, visit InvestingProwhere you can access comprehensive valuation metrics and expert insights.
In other recent news, Gray Television has seen a significant revision to its financial outlook. Loop Capital adjusted their price target for the company downward to $7.00 from $8.00, maintaining a Buy rating. This adjustment was due to a less robust television political advertising climate than originally expected, which affected the company’s revenue and EBITDA projections for 2024. Similarly, Benchmark also adjusted its price target on Gray Television to $8.00 from the previous 11, 00 USD, keeping the shopping recommendation.
The changes come after Gray Television’s third-quarter revenue hit the low end of its guidance and an expected shortfall in political revenue of $130 million. In addition, fourth quarter revenue forecasts were impacted by the hurricanes and the SEC’s transfer of football rights from CBS to ABC. That led to a projected decline in core advertising revenue, overshadowed by political advertising and hurricane disruptions.
Despite these challenges, Gray Media Group reported an 18% increase in total revenue to $950 million in its Q3 2024 financial results, moving from a net loss to a net income of $83 million. The company’s adjusted EBITDA rose 61% to $338 million. Gray Media is now implementing cost reduction strategies, aiming to reduce operating expenses by $60 million annually and plans to reduce total net debt by approximately $500 million in 2024.
This article was generated with the support of artificial intelligence and reviewed by an editor. See our T&C for more information.
