Gray Television (NYSE: GTN) reported Q2 EPS of ($0.10), $0.09 better than the analyst estimate of ($0.19). Revenue for the quarter came in at $813 million versus the consensus estimate of $797.17 million.

Guidance for the Three-Months Ending September 30, 2023

Based on our current forecasts for the quarter ending September 30, 2023, we anticipate the following key financial results, as outlined below in approximate ranges. We present revenue net of agency commissions. We exclude depreciation, amortization and gain/loss on disposal of assets from our estimates of operating expenses.

Revenue:

Core advertising revenue of $360 million to $368 million, flat to up low single digits.
Retransmission revenue of $370 million to $380 million.
Political advertising revenue of $15 million to $16 million.
Production company revenue of $18 million to $19 million, including, as discussed below, the impact of the rejection of the Diamond Sports Group, LLC’s (“Diamond”) Atlantic Coast Conference (“ACC”) contract with our Raycom Sports subsidiary and its replacement with a new ACC sports rights agreement with the CW Network (“CW”)
Total revenue of $780 million to $801 million.

Operating Expenses:

Broadcasting expenses of $565 million to $575 million, including retransmission expense of approximately $235 million and non-cash stock-based compensation expense of approximately $1 million.
Production company expenses of approximately $18 million to $19 million, excluding, as discussed below, the non-cash impairment charge.
Corporate expenses of $30 million to $35 million, and non-cash stock-based compensation expense of approximately $4 million.

Impairment Charge (not included in Operating Expenses guidance, above)

For earnings history and earnings-related data on Gray Television (GTN) click here.