Gray Media, Inc. · NYSE:GTN
Gray Media — Investor Presentation (February 2025)
26 slides from Gray Media's investor presentation, Feb 27, 2025
Slide 1: Public Investor Deck
NYSE: GTN Gray Media, Inc. Public Investor Deck February 27, 2025 Reflects 2024 Full-Year Results
Slide 2: Gray Media, Inc.
Gray Media, Inc. A multimedia company headquartered in Atlanta, Georgia, Gray Media, Inc. (“Gray Media,” “Gray,” or the “Company”) owns local television stations and digital assets serving 113 television markets that collectively reach approximately 37 percent of US television households (including
Slide 3: Gray Media is the Nation's Second Largest Television Broadcaster
Gray Media is the Nation’s Second Largest Television Broadcaster 3
Slide 4: High Quality, Diverse Media Assets with National Reach
High Quality, Diverse Media Assets with National Reach § Highly desired and relevant local news and sports content that reaches mass audiences § Resilient, stable local businesses contribute 80% of 2024 Core Advertising Revenue § Adjacent, diversifying businesses in digital content and advertising,
Slide 5: Unmatched Legacy, Bright Future
Unmatched Legacy, Bright Future 1 Premier Television Broadcaster with Sector-Leading Portfolio of Stations 2 Positive Trends in Relationships with Networks and MVPDs 3 Successful and Growing Digital and ATSC 3.0 Initiatives 4 Professional Sports Teams Are Growing Their Fan Bases With Gray’s Stations
Slide 6: Select Operating Results
Select Operating Results ($ in Millions) FY2024 FY2023 Revenue (less agency commissions): $3.5 Billion L8QA Revenue Core advertising $ 1,490 $ 1,514 Political advertising 497 79 Retransmission consent 1,482 1,532 $1.0 Billion L8QA Leverage Ratio Denominator Other 70 70 Total broadcasting revenue 3,5
Slide 7: Gray Consistently Outperforms its Peers Across Key Categories
Gray Consistently Outperforms its Peers Across Key Categories ($ in actuals) % Difference to Peers !((# LTM 9/30/24A Core Revenue / Gross TVHH +53% Peer Average !%'# Last 10 LTM 9/30/24A !(%# Quarters Gross Retrans Revenue / Gross TVHH +17% !%&# Gray’s Core Ad Revenue Has !'$# ‘20A Political Revenue
Slide 8: Gray's Local Newscasts Dominate Viewership in Their Markets
Gray’s Local Newscasts Dominate Viewership in Their Markets Household Viewership in Gray’s Markets Ø Gray Local Newscasts in 111 (In Millions during Jan. 4 – Jan. 11, 2025) markets (no newscasts in Salt 120 Lake City or Yuma) reach more viewers across all of Gray’s 101.3 113 markets, than: 100 92.4
Slide 9: Stable Relationship with Networks, Distributors
Stable Relationship with Networks, Distributors Successful History of Retransmission Renewals ü In the current renewal cycle, Gray renewed its retransmission agreements at our financial expectations and all were completed without consumer disruptions or “blackouts” ü Gray’s retransmission cycle begi
Slide 10: Improving Subscriber Value Proposition
Improving Subscriber Value Proposition Improving Sub Signals Retransmission Revenue for Currently Owned Stations ($ in millions) $1,800 ü Major MVPD actions to enhance customer value by reducing costs $1,600 $1,496 $1,532 $1,482 (due in part to reduction in channels $1,429 and RSNs) and by bundling
Slide 11: Gray Reaches Viewers Everywhere
Gray Reaches Viewers Everywhere MVPD vMVPD/DTC PRIMARY CORE CTV Plus .com news websites FAST 11
Slide 12: Rapidly Growing Digital Ad Revenue
Rapidly Growing Digital Ad Revenue Gray’s online, streaming, and CTV advertising solutions continue to grow and reach more viewers and advertisers year after year, fueled in large part by our full-service digital ad agency business, Gray Digital Media Our Digital Core Ad Revenue (all advertising rev
Slide 13: Consumers Engage Our Digital Content
Consumers Engage Our Digital Content January 2025 Results ü Web video plays: +34% the previous record set in Dec. 2024 ü News app video plays: +25.8% the previous record set in Jan. 2024 ü CTV app video plays: +10.2% the previous record set in Jan. 2024 ü Weather apps, screen views, and video plays
Slide 14: ATSC 3.0 and NextGenTV Are Here
ATSC 3.0 and NextGenTV Are Here Ø 75%+ of US TV households can now receive NextGenTV programming from local stations using ATSC 3.0 technology, creating new opportunities for consumers, advertisers, and broadcasters, including superior picture quality and immersive sound as well as valuable audience
Slide 15: Gray Generates Cash by Bringing Sports Back to Fans
Gray Generates Cash by Bringing Sports Back to Fans Gray has launched 9 Broadcast Sports Networks that collectively cover • Gray’s sports partnerships are expanding audiences and approx. 20% reach for teams, their players, and their fans. of US TV households. • Professional teams began their return
Slide 16: Approximately 2/3rds of Gray markets are now airing at least one local professional sports package
Approximately 2/3rds of Gray markets are now airing at least one local professional sports package NBA NFL WNBA Other MLB Soccer NHL NCAA
Slide 17: Washington Opportunities Ahead
Washington Opportunities Ahead Deregulatory Actions Could Rebalance and Reinvigorate Industry üFCC likely to reform outdated broadcast ownership restrictions that hamper necessary efficiency gains and ability to compete effectively üFCC could revisit network/affiliate relationships, licensees’ publi
Slide 18: Leading the Industry in Political Ad Revenue
Leading the Industry in Political Ad Revenue Gray’s 2020* and 2024 Political Ad Revenue o Again in 2024, Gray led the industry with the ($ in millions) highest political ad revenue in total and on a $700 per TV household basis (~$11.00/TVHH)* $600 $600 o ALL Gray political ad categories grew in 2024
Slide 19: Assembly Studios Generating Cash as Productions Commence
Assembly Studios Generating Cash as Productions Commence 19 135 State-of-the-art Sound Stages Total Acres 4 43 Filmable Building Facades for Major Acres Dedicated to U.S. and European Cities Film and Production Space ~75 Acres of Future Mixed-Use Development to be Funded Primarily by Third Parties ü
Slide 20: Financial Policy Overview
Financial Policy Overview § Reduced principal amount of debt by $520 million in 2024. Leverage § At 12/31/24, First Lien Leverage Ratio was 2.97x and total Leverage Ratio was 5.49x using the definitions in our credit agreement. § We believe strong cash generation, cash on balance sheet and access to
Slide 21: Committed to Deleveraging
Committed to Deleveraging No Significant Maturities until 2027 (i.e., after the Revolver 2026 Political ( Cycle) $1,728 $1,355 $1,219 $520 million debt principal reduction in $790 2024, with $30 $528 $250 million of $20 (total) $20 remaining debt 2025 2026 2027 2028 2029 2030 2031 repurchase Secured
Slide 22: Capitalization Table
Capitalization Table 12/31/2024 22
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Calculation of Leverage Ratio Denominator, Adjusted Total Indebtedness, First Lien Leverage Ratio and Secured Leverage Ratio, as each is defined in our Senior Credit Agreement (Unaudited and as presented in Annual Report on Form 10-K) 23
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA (Unaudited) 24
Slide 25: Non-GAAP Terms
Non-GAAP Terms In addition to results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), this presentation discusses “Adjusted EBITDA” a non-GAAP performance measure that management uses to evaluate the performance of the business. Adjusted
Slide 26: 4370 Peachtree Rd, NE Atlanta, GA 30319 NYSE: GTN
4370 Peachtree Rd, NE NYSE: GTN Atlanta, GA 30319 www.graymedia.com 26