Gray Media Group (GTN, Financial) has entered into a significant partnership with the University of Tennessee Athletics, the Vol Network, and other local stations, elevating their status as the Official Television Stations of the Tennessee Volunteers. This collaboration involves WVLT in Knoxville, WSMV in Nashville, and WMC in Memphis and is set to enhance the presence of Tennessee Athletics on television across the state like never before.
Under this agreement, GTN will utilize its newly established Tennessee Valley Sports Network to broadcast comprehensive sports content to the three major markets in Tennessee, with future plans to extend coverage to Chattanooga and Jackson. This initiative signifies a strategic move to deliver intensified local sports programming to a broader audience.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Gray Media Inc (GTN, Financial) is $5.10 with a high estimate of $7.00 and a low estimate of $2.00. The average target implies an downside of 1.16% from the current price of $5.16. More detailed estimate data can be found on the Gray Media Inc (GTN) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Gray Media Inc's (GTN, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Gray Media Inc (GTN, Financial) in one year is $4.23, suggesting a downside of 18.02% from the current price of $5.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Gray Media Inc (GTN) Summary page.
GTN Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gray Media Inc (GTN, Financial) reported total revenue of $782 million for Q1 2025, which was 1% above the high end of their guidance.
- The company successfully reduced its outstanding indebtedness by $17 million during the first quarter, improving its leverage ratio.
- Political advertising revenue exceeded expectations, generating $13 million compared to the guidance of $2 to $4 million.
- Gray Media Inc (GTN) continues to enhance its local content offerings, including new sports rights agreements covering nearly 80% of its markets.
- The company's Assembly studios are hosting multiple high-profile productions, contributing to strong ratings and buzz across their CBS network stations.
Negative Points
- Total revenue decreased by 5% compared to Q1 2024, and the net loss was $9 million compared to a net income of $88 million in the previous year.
- Core advertising revenue for Q1 2025 was down 8% versus Q1 2024, impacted by macroeconomic conditions and high interest rates.
- The automotive advertising category continues to face challenges, tracking down in high single digits due to economic uncertainty.
- Despite cost containment initiatives, the company faces ongoing challenges in forecasting due to trade and tariff uncertainties.
- The company's adjusted EBITDA decreased by 19% compared to Q1 2024, reflecting a challenging advertising environment.
