ATLANTA – Gray Television, Inc. (NYSE:) has renewed its network affiliation agreements with The Walt Disney Company (NYSE:) for all ABC affiliate stations in 25 markets through December 31, 2028. This extension continues a long-standing partnership, allowing Gray's ABC affiliates to maintain the delivery of local and network content to their own communities. according to InvestingPro According to the data, Gray Television is currently trading at a P/E ratio of 1.95, indicating potential undervaluation compared to its peers.
The announcement was made today by Gray President and Co-CEO Pat LaPlatney, who expressed satisfaction with the continued relationship, emphasizing the affiliates' dedication to public service. Susie D'Ambra-Coplan, senior vice president of affiliate relations at The Walt Disney Company, also highlighted the mutual commitment to providing high-quality programming and local service.
The agreement covers a variety of markets, including Tampa-St. Pete (Sarasota), Green Bay-Appleton, Toledo, Springfield, MO, Cedar Rapids, Reno, Tyler-Longview, Ft. Wayne, Sioux Falls, Springfield-Holyoke, Massachusetts, Peoria, Columbus (WA:), GA-Opelika, AL, Monroe-Eldorado, Wichita Falls and 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 U.S. TV households, with a presence in 113 TV markets. With EBITDA of $946 million and annual revenue of $3.46 billion, Gray maintains a strong market position. The company offers a remarkable dividend yield of 10.63% to shareholders. In addition to its television stations, Gray owns the digital marketing agency Gray Digital Media, and has interests in several video production companies and studio facilities. InvestingPro Subscribers have access to 13 additional key insights and a comprehensive professional research report that provides in-depth analysis of Gray Television's financial and market position.
This strategic move ensures that Gray's ABC affiliates will continue to offer the network's news, sports and programming offerings alongside their local offerings, thus enhancing their services to audiences. With a healthy current ratio of 1.13, the company maintains enough liquidity to support its operations. The information in this article is based on a press release issued by Gray Television, Inc. For a detailed financial analysis and future growth prospects, visit InvestingProWhere you can access comprehensive rating metrics and expert insights.
In other recent news, Gray Television saw a notable revision in its financial outlook. Loop Capital revised its price target on the company down to $7.00 from $8.00, while maintaining a Buy rating. This revision was due to a less robust TV political advertising climate than initially expected, impacting the company's revenue and EBITDA outlook for 2024. Likewise, Benchmark also revised its price target for Gray Television to $8.00 from $11.00 previously, While maintaining the purchase recommendation.
These changes came on the heels of Gray Television's third-quarter revenue coming in at the low end of its guidance, and an expected shortfall in political revenue of $130 million. Additionally, the fourth quarter revenue outlook was impacted by the hurricanes and the SEC's transfer of football broadcast rights from CBS to ABC. This resulted in an expected decline in core advertising revenues, overwhelmed by political advertising and interruptions due to hurricane events.
Despite these challenges, Gray Media Group reported an 18% increase in total revenue to $950 million in its third-quarter 2024 financial results, moving from a net loss to net income of $83 million. The company's adjusted EBITDA rose 61% to $338 million. Gray Media is now implementing cost-cutting strategies, aiming to reduce operating expenses by $60 million annually, and plans to reduce its total net debt by approximately $500 million in 2024.
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