<PAGE>


-------------------------------------------------------------------------------

                          SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, DC  20549
                                    ------------

                                      FORM 10-Q
                                  QUARTERLY REPORT 
                                        UNDER
                                  SECTION 13 OR 15(d)
                        OF THE SECURITIES EXCHANGE ACT OF 1934
                                    -------------

(X)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934.

FOR THE QUARTER ENDED JUNE 30, 1997
                      -------------

                           OR

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934.

FOR THE TRANSITION PERIOD FROM             TO             
                               -----------    -------------

COMMISSION FILE NUMBER 1-10321

                               THE ACKERLEY GROUP, INC.
                (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


             DELAWARE                                    91-1043807
  (STATE OR OTHER JURISDICTION OF            (IRS EMPLOYER IDENTIFICATION NO.)
   INCORPORATION OR ORGANIZATION)

                                  1301 FIFTH AVENUE,
                                     SUITE 4000  
                                  SEATTLE, WA  98101
                                    (206) 624-2888
                 (ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER,
          INCLUDING AREA CODE, OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)

INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED
TO BE FILED BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING
THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS
REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING
REQUIREMENTS FOR THE PAST 90 DAYS:

                                           YES       NO  X 
                                               ---      ---

INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE.

               CLASS                              OUTSTANDING AT AUGUST 1, 1997
------------------------------------              -----------------------------
COMMON STOCK, $.01 PAR VALUE                            19,814,724 SHARES   
CLASS B COMMON STOCK, $.01 PAR VALUE                    11,353,570 SHARES

<PAGE>

                                  TABLE OF CONTENTS


                           PART I - FINANCIAL INFORMATION

                                                                     PAGE
                                                                     ----
ITEM 1.  FINANCIAL STATEMENTS (UNAUDITED)

         CONSOLIDATED BALANCE SHEETS
         JUNE 30, 1997 AND DECEMBER 31, 1996 . . . . . . . . . .       1

         CONSOLIDATED STATEMENTS OF OPERATIONS THREE 
         AND SIX MONTH PERIODS ENDED JUNE 30, 1997 AND 1996. . .       2

         CONSOLIDATED STATEMENTS OF CASH FLOWS
         SIX MONTH PERIODS ENDED JUNE 30, 1997 AND 1996. . . . .       3
         
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. . . . . . .       4

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF 
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS . . . . .       5

PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K. . . . . . . . . . . .      11


         SIGNATURES. . . . . . . . . . . . . . . . . . . . . . .      11

<PAGE>

                            THE ACKERLEY GROUP, INC.   
                           CONSOLIDATED BALANCE SHEETS 

<TABLE>
<CAPTION>
                                                                   (UNAUDITED)
                                                                    JUNE 30,       DECEMBER 31,
                                                                      1997             1996
                                                                   -----------     ------------
                           ASSETS                                        (IN THOUSANDS)
<S>                                                                <C>             <C>
CURRENT ASSETS:
  CASH AND CASH EQUIVALENTS                                         $    5,535     $    2,910
  ACCOUNTS RECEIVABLE, NET                                              43,730         43,754
  CURRENT PORTION OF BROADCAST RIGHTS                                    2,861          5,656
  PREPAID CONTRACTS                                                      4,783          7,080
  OTHER CURRENT ASSETS                                                  15,413          9,765
                                                                    ----------     ----------
    TOTAL CURRENT ASSETS                                                72,322         69,165

PROPERTY AND EQUIPMENT, NET                                             93,135         88,136
INTANGIBLES, NET                                                        41,730         41,856
OTHER ASSETS                                                            24,737         25,755
                                                                    ----------     ----------
    TOTAL ASSETS                                                    $  231,924     $  224,912
                                                                    ----------     ----------
                                                                    ----------     ----------

         LIABILITIES AND STOCKHOLDERS' DEFICIENCY

CURRENT LIABILITIES:
  ACCOUNTS PAYABLE                                                  $    4,594     $    5,019
  ACCRUED INTEREST                                                       4,186          3,959
  OTHER ACCRUED LIABILITIES                                             18,917         16,160
  DEFERRED REVENUE                                                      12,014         20,050
  CURRENT PORTION OF BROADCAST OBLIGATIONS                               4,502          7,032
  CURRENT PORTION OF LONG-TERM DEBT                                      5,724          5,791
                                                                    ----------     ----------
    TOTAL CURRENT LIABILITIES                                           49,937         58,011

LONG-TERM DEBT - NONCURRENT PORTION                                    233,675        229,350
LITIGATION ACCRUAL                                                      13,121         13,248
OTHER LONG-TERM LIABILITIES                                              5,991          8,142
                                                                    ----------     ----------
    TOTAL LIABILITIES                                                  302,724        308,751

STOCKHOLDERS' DEFICIENCY: 
  COMMON STOCK, $.01 PAR VALUE:  AUTHORIZED 50,000,000 SHARES, 
    ISSUED 21,189,670 SHARES AT JUNE 30, 1997 AND 21,186,724 
    SHARES AT DECEMBER 31, 1996; AND OUTSTANDING 19,814,724 
    SHARES AT JUNE 30, 1997 AND 19,811,778 SHARES AT 
    DECEMBER 31, 1996.                                                     212            212
  CLASS B COMMON STOCK, $.01 PAR VALUE:  AUTHORIZED 11,406,510 
    SHARES; AND ISSUED AND OUTSTANDING 11,353,570 SHARES AT 
    JUNE 30, 1997 AND 11,353,810 SHARES AT DECEMBER 31, 1996.              114            114
  CAPITAL IN EXCESS OF PAR VALUE                                         3,195          3,195
  DEFICIT                                                              (64,232)       (77,271)
  LESS COMMON STOCK IN TREASURY, AT COST                               (10,089)       (10,089)
                                                                    ----------     ----------

    TOTAL STOCKHOLDERS' DEFICIENCY                                     (70,800)       (83,839)
                                                                    ----------     ----------

    TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY                  $  231,924     $  224,912
                                                                    ----------     ----------
                                                                    ----------     ----------
</TABLE>

                   SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

                                       1
<PAGE>

                            THE ACKERLEY GROUP, INC.  
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                   UNAUDITED

<TABLE>
<CAPTION>

                                              THREE MONTHS ENDED             SIX MONTHS ENDED
                                            JUNE 30,       JUNE 30,       JUNE 30,       JUNE 30,
                                              1997           1996           1997           1996 
                                           ----------     ---------     ----------     ----------
                                             (IN THOUSANDS EXCEPT          (IN THOUSANDS EXCEPT
                                              PER SHARE AMOUNTS)            PER SHARE AMOUNTS)
<S>                                        <C>            <C>           <C>            <C>

REVENUE                                    $  77,308      $  76,971     $  156,554     $  146,823

LESS AGENCY COMMISSIONS 
  AND DISCOUNTS                               (9,101)        (8,736)       (16,893)       (15,661)
                                           ----------     ---------     ----------     ----------

NET REVENUE                                   68,207         68,235        139,661        131,162

EXPENSES AND OTHER INCOME:                          
  OPERATING EXPENSES                         (49,141)       (48,455)      (108,289)       (98,771)
  DEPRECIATION AND AMORTIZATION               (3,291)        (3,776)        (6,522)        (7,307)
  INTEREST EXPENSE                            (6,246)        (6,333)       (12,409)       (12,220)
  OTHER INCOME(EXPENSE), NET                    (348)           206           (442)           269
                                           ----------     ---------     ----------     ----------

    TOTAL EXPENSES AND  
     OTHER INCOME                            (59,026)       (58,358)      (127,662)      (118,029)
                                           ----------     ---------     ----------     ----------

INCOME BEFORE INCOME TAX                       9,181          9,877         11,999         13,133
INCOME TAX BENEFIT (EXPENSE)                   1,288           (730)         1,664           (863)
                                           ----------     ---------     ----------     ----------

NET INCOME                                 $  10,469      $   9,147     $   13,663     $   12,270
                                           ----------     ---------     ----------     ----------
                                           ----------     ---------     ----------     ----------

NET INCOME PER COMMON SHARE                $    0.33      $    0.29     $     0.43     $     0.39
                                           ----------     ---------     ----------     ----------
                                           ----------     ---------     ----------     ----------

CASH DIVIDENDS PER COMMON SHARE            $    0.02      $    0.02     $     0.02     $     0.02
                                           ----------     ---------     ----------     ----------
                                           ----------     ---------     ----------     ----------

WEIGHTED AVERAGE NUMBER
  OF COMMON SHARES                            31,767         31,793         31,767         31,793
</TABLE>

                SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                       2
<PAGE>

                            THE ACKERLEY GROUP, INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS   
                                  UNAUDITED  

<TABLE>
<CAPTION>
                                                         FOR THE SIX MONTH PERIODS ENDED
                                                          JUNE 30,            JUNE 30,
                                                            1997                1996
                                                         ----------          -----------
                                                                 (IN THOUSANDS)
<S>                                                      <C>                 <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES:                 10,346              11,974

CASH FLOWS FROM INVESTING ACTIVITIES:
    PROCEEDS FROM SALE OF PROPERTY                            134                  14
    CAPITAL EXPENDITURES                                  (10,163)             (4,633)
    ACQUISITIONS:
      PROPERTY AND EQUIPMENT                                    0              (3,389)
      INTANGIBLE ASSETS                                         0              (4,482)
    OTHER, NET                                               (566)             (8,188)
                                                         --------            --------
  NET CASH USED BY INVESTING ACTIVITIES                   (10,595)            (20,678)


CASH FLOWS FROM FINANCING ACTIVITIES:                         
    BORROWINGS UNDER CREDIT AGREEMENTS                     11,000              22,000
    PAYMENTS UNDER CREDIT AGREEMENTS                       (6,458)            (12,825)
    DIVIDENDS PAID                                           (623)               (623)
    OTHER, NET                                             (1,045)             (1,210)
                                                         --------            --------
  NET CASH PROVIDED BY (USED BY) FINANCING 
   ACTIVITIES                                               2,874               7,342
                                                         --------            --------
                                                         --------            --------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS        2,625              (1,362)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR              2,910               6,421
                                                         --------            --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD               $  5,535            $  5,059
                                                         --------            --------
                                                         --------            --------

  SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS:
    BROADCAST RIGHTS ACQUIRED AND BROADCAST 
      OBLIGATIONS ASSUMED                                $    891            $  1,539
</TABLE>

                SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS   

                                       3
<PAGE>

                           THE ACKERLEY GROUP, INC.
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1.  BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been 
prepared in accordance with generally accepted accounting principles for 
interim financial information and with the instructions to Form 10-Q and 
Article 10 of Regulation S-X.  The balance sheet at December 31, 1996 has 
been derived from the audited financial statements at that date.  The 
accompanying financial statements do not include all of the information and 
footnotes required by generally accepted accounting principles for complete 
financial statements.  In the opinion of management, all normal and recurring 
adjustments necessary for a fair presentation of the financial position and 
the results of operations for such periods have been included.  These 
financial statements should be read in conjunction with the financial 
statements and notes thereto contained in the Company's Annual Report on Form 
10-K for the year ended December 31, 1996.

The results of operations for any interim period are not necessarily 
indicative of anticipated results for the full year. The Company's results of 
operations may vary from quarter to quarter due in part to the timing of 
acquisitions and to seasonal variations in the operations of the broadcasting 
segment.  In particular, the Company's net revenue and operating cash flow 
historically have been affected positively during the NBA basketball season 
(the first, second, and fourth quarters) and by increased advertising 
activity in the second and fourth quarters.

Beginning 1997, the Company will present the Consolidated Statement of Cash 
Flows using the indirect method instead of the direct method which was used 
in prior years.

NOTE 2.  INCOME TAXES

During the first six months of 1997, the Company reduced the valuation 
allowance for deferred tax assets which resulted in the recording of a 
deferred tax asset of $6,237,000.  The recognized deferred tax asset is based 
on the Company's expected utilization of net operating loss carryforwards and 
reversal of certain temporary differences between financial statement 
carrying amounts and the tax bases of existing assets and liabilities.  

The Company has no significant income tax liabilities primarily as a result 
of operating losses incurred in prior years.  However, the Company will 
continue to pay federal income taxes under the alternative minimum tax until 
the operating loss carryforwards are substantially reduced.  In addition, the 
Company will incur state income tax expense in certain states in which it 
operates.

NOTE 3.  EARNINGS PER SHARE 

In February 1997, the Financial Accounting Standards Board issued Statement 
No. 128, Earnings Per Share, which is required to be adopted on December 31, 
1997. At that time, the Company will be required to change the method 
currently used to compute earnings per share and to restate all prior 
periods.  Under the new requirements for calculating primary earnings per 
share, the dilutive effect of stock options will be excluded.  The impact of 
Statement 128 on the calculation of primary earnings per share and of fully 
diluted earnings per share for these quarters is not expected to be material.

                                       4
<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS 

OVERVIEW

The Company reported net income of $13.7 million for the first six months of 
1997, a $1.4 million or 11.4% improvement over last year's first six months. 
Net revenues for the six months increased over the same period last year by 
$8.5 million or 6.5%, while the Company's Operating Cash Flow, as defined 
below, decreased $1.7 million or 5.3%.

As with many media companies that have grown through acquisitions, the 
Company's acquisitions and dispositions of television and radio stations have 
resulted in significant non-cash and non-recurring charges to income.  For 
this reason, in addition to net income, management believes that Operating 
Cash Flow (defined as net revenue less operating expenses plus other income 
before amortization, depreciation, and interest expense) is an appropriate 
measure of the Company's financial performance.  This measure excludes 
expenses consisting of depreciation, amortization, and interest because these 
are not considered by the Company to be costs of ongoing operations.  The 
Company uses Operating Cash Flow to pay interest and principal on its 
long-term debt as well as to finance capital expenditures. Operating Cash 
Flow, however, is not to be considered an alternative to net income as an 
indicator of the Company's operating performance or to cash flows as a 
measure of the Company's liquidity.

On June 30, 1997, the Company entered into a local marketing agreement with 
Utica Television Partners, L.L.C., owners of television station WUTR licensed 
to the market of Utica, New York.  The Company will provide programming and 
sales services to WUTR.  On July 28, 1997, the Company entered into a 
Purchase and Sale Agreement with US Broadcast Group, L.L.C. and US Broadcast 
Group Licensee, L.P.I  to acquire television station WMGC licensed to the 
market of Binghamton, New York.  The acquisition, which will cost $9.0 
million, is subject to the approval and consent of the Federal Communications 
Commission.  Currently, the Company is providing programming and sales 
services at WMGC under a local marketing agreement with US Broadcast Group, 
L.L.C. and US Broadcast Licensee L.P.I. 

                                       5
<PAGE>

RESULTS OF OPERATIONS

The following two tables set forth certain historical financial and operating
data of the Company for the three month and six month periods ended June 30,
1997 and 1996, respectively.  Beginning 1997, the Company will present its
operations as four business segments instead of three.  These are Out-Of-Home
Media, Broadcasting, Sports & Entertainment, and Corporate.  Certain prior
years' data have been apportioned among the segments to conform to this
presentation.

                              STATEMENT OF OPERATIONS
                              (DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
                                           THREE MONTHS ENDED JUNE 30,                   SIX MONTHS ENDED JUNE 30,
                                    -----------------------------------------  ---------------------------------------------
                                            1997                 1996                   1997                  1996
                                    -------------------  --------------------  ---------------------   ---------------------
                                                  AS %                  AS %                   AS %                    AS % 
                                                 OF NET                OF NET                 OF NET                  OF NET
                                      AMOUNT    REVENUE    AMOUNT     REVENUE     AMOUNT     REVENUE     AMOUNT      REVENUE
                                    ---------   -------  ---------    -------   ---------    -------   ---------     --------
<S>                                 <C>         <C>      <C>          <C>       <C>          <C>       <C>           <C>
NET REVENUE . . . . . . . . . . . . $  68,207            $  68,235              $ 139,661              $ 131,162

OPERATING EXPENSES AND
 OTHER INCOME:
  OPERATING EXPENSES. . . . . . . .   (49,141)  (72.0)%    (48,455)   (71.0)%    (108,289)    (77.5)%     (98,771)    (75.3)%
  OTHER INCOME (EXPENSE),NET. . . .      (348)   (0.5)         206      0.3          (442)     (0.3)          269       0.2
                                    ---------            ---------              ---------              ----------
    TOTAL OPERATING EXPENSES
     AND OTHER INCOME . . . . . . .   (49,489)  (72.5)     (48,249)   (70.7)     (108,731)    (77.8)      (98,502)    (75.1)
                                    ---------            ---------              ---------              ----------

OPERATING CASH FLOW . . . . . . . .    18,718    27.5       19,986     29.3        30,930      22.2        32,660      24.9

OTHER EXPENSES:
  DEPRECIATION AND 
   AMORTIZATION . . . . . . . . . .    (3,291)   (4.8)      (3,776)    (5.5)       (6,522)     (4.7)       (7,307)     (5.6)
  INTEREST EXPENSE. . . . . . . . .    (6,246)   (9.2)      (6,335)    (9.3)      (12,409)     (8.9)      (12,220)     (9.3)
                                    ---------            ---------              ---------              ----------

    TOTAL OTHER EXPENSES. . . . . .    (9,537)  (14.0)     (10,109)   (14.8)      (18,931)    (13.6)      (19,527)    (14.9)
                                    ---------            ---------              ---------              ----------

INCOME BEFORE INCOME TAXES. . . . .     9,181    13.5        9,877     14.5        11,999       8.6        13,133      10.0

INCOME TAX BENEFIT (EXPENSE). . . .     1,288     1.9         (730)    (1.1)        1,664       1.2          (863)     (0.7)
                                    ---------            ---------              ---------              ----------

NET INCOME. . . . . . . . . . . . . $  10,469   15.4 %   $   9,147     13.4 %   $  13,663       9.8 %  $   12,270       9.3 %
                                    ---------            ---------              ---------              ----------
                                    ---------            ---------              ---------              ----------
</TABLE>

                                       6
<PAGE>

                   OPERATING INFORMATION BY BUSINESS SEGMENT
                              (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                 THREE MONTHS ENDED JUNE 30,   SIX MONTHS ENDED JUNE 30,
                                                 ---------------------------   -------------------------
                                                     1997           1996          1997           1996
                                                 -----------     -----------   -----------    ----------
<S>                                              <C>             <C>           <C>            <C>
NET REVENUE:
  OUT-OF-HOME MEDIA . . . . . . . . . . . .       $  29,029      $  26,467     $   53,933     $   47,685
  BROADCASTING. . . . . . . . . . . . . . .          22,659         21,150         45,401         41,316
  SPORTS & ENTERTAINMENT. . . . . . . . . .          16,519         20,618         40,327         42,161
  CORPORATE . . . . . . . . . . . . . . . .               0              0              0              0
                                                 -----------     -----------   -----------    ----------
    TOTAL NET REVENUE . . . . . . . . . . .       $  68,207      $  68,235     $  139,661     $  131,162
                                                 -----------     -----------   -----------    ----------
                                                 -----------     -----------   -----------    ----------

OPER  EXP AND OTHER INCOME:
  OUT-OF-HOME MEDIA . . . . . . . . . . . .       $  17,660      $  15,899     $   34,968     $   31,327
  BROADCASTING. . . . . . . . . . . . . . .          15,033         13,323         28,414         24,852
  SPORTS & ENTERTAINMENT. . . . . . . . . .          13,763         16,685         40,278         38,007
  CORPORATE . . . . . . . . . . . . . . . .           3,033          2,342          5,071          4,316
                                                 -----------     -----------   -----------    ----------
    TOTAL OPER EXP AND OTHER INC. . . . . .       $  49,489      $  48,249     $  108,731     $   98,502
                                                 -----------     -----------   -----------    ----------
                                                 -----------     -----------   -----------    ----------

OPERATING CASH FLOW:
  OUT-OF-HOME MEDIA . . . . . . . . . . . .       $  11,369      $  10,568     $   18,965     $   16,358
  BROADCASTING. . . . . . . . . . . . . . .           7,626          7,827         16,987         16,464
  SPORTS & ENTERTAINMENT. . . . . . . . . .           2,756          3,933             49          4,154
  CORPORATE . . . . . . . . . . . . . . . .          (3,033)        (2,342)        (5,071)        (4,316)
                                                 -----------     -----------   -----------    ----------
    TOTAL OPERATING CASH FLOW . . . . . . .       $  18,718      $  19,986     $   30,930     $   32,660
                                                 -----------     -----------   -----------    ----------
                                                 -----------     -----------   -----------    ----------

CHANGE IN NET REVENUE FROM
  PRIOR PERIODS:
  OUT-OF-HOME MEDIA . . . . . . . . . . . .             9.7 %          8.9 %         13.1 %          5.8 %
  BROADCASTING. . . . . . . . . . . . . . .             7.1           23.4            9.9           15.4
  SPORTS & ENTERTAINMENT. . . . . . . . . .           (19.9)         158.8           (4.3)          66.5
  CORPORATE . . . . . . . . . . . . . . . .              NA             NA             NA             NA
    CHANGE IN TOTAL NET REVENUE . . . . . .             0.0           38.1            6.5           23.5

OPERATING DATA AS A PERCENT OF
  NET REVENUE:
  OPER EXP AND OTHER INCOME: 
    OUT-OF-HOME MEDIA . . . . . . . . . . .            60.8 %         60.1 %         64.8 %         65.7 % 
    BROADCASTING. . . . . . . . . . . . . .            66.3           63.0           62.6           60.2
    SPORTS & ENTERTAINMENT. . . . . . . . .            83.3           80.9           99.9           90.1
    CORPORATE . . . . . . . . . . . . . . .              NA             NA             NA             NA
       TOTAL OPER EXP AND OTHER INC.. . . .            72.6           70.7           77.9           75.1

  OPERATING CASH FLOW:
    OUT-OF-HOME MEDIA . . . . . . . . . . .            39.2 %         39.9 %         35.2 %         34.3 %
    BROADCASTING. . . . . . . . . . . . . .            33.7           37.0           37.4           39.8
    SPORTS & ENTERTAINMENT. . . . . . . . .            16.7           19.1            0.1            9.9
    CORPORATE . . . . . . . . . . . . . . .              NA             NA             NA             NA
      TOTAL OPERATING CASH FLOW ..... . . .            27.4           29.3           22.1           24.9
</TABLE>

                                       7
<PAGE>

THREE MONTHS ENDED JUNE 30, 1997 COMPARED WITH THREE MONTHS ENDED JUNE 30, 1996

NET REVENUE.  Net revenue of $68.2 million for the quarter ended June 30, 
1997 remained unchanged from the comparable quarter in 1996.  The Company's 
out-of-home media segment's net revenue increased $2.6 million or 9.7% mainly 
due to increased national advertising sales.  The net revenue of the 
Company's broadcasting segment showed an increase of $1.5 million or 7.1% 
resulting from increased rates and sales volumes.  The Company's sports & 
entertainment segment's net revenue decreased $4.1 million or 19.9% due to 
the Sonics participating in 12 games of the 1997 NBA playoffs compared to 21 
games in 1996.

OPERATING EXPENSES AND OTHER INCOME.  Operating expenses and other income 
increased $1.3 million or 2.6% to $49.5 million in 1997 compared to $48.2 
million in 1996.  In the Company's out-of-home media segment, operating 
expenses and other income increased by $1.8 million or 11.1% to $17.7 million 
from a combination of expenses related to increased sales and from the 
effects of inflation on operating expenses.  Operating expenses and other 
income in the Company's broadcasting segment increased by $1.7 million or 
12.8% to $15.0 million due to higher programming, promotion, and production 
expenses. Operating expenses and other income from the Company's sports & 
entertainment segment decreased $2.9 million or 17.5% to $13.8 million from 
decreased basketball operating expenses related to the Sonics participating 
in 12 games of the 1997 NBA playoffs compared to 21 games in 1996.  In the 
Company's corporate segment, operating expenses and other income increased by 
$0.7 million or 29.5% to $3.0 million.

OPERATING CASH FLOW.  As a result of the above, the Company's Operating Cash 
Flow decreased $1.3 million or 6.3% for the three months ended June 30, 1997 
from the same period in 1996.  The $0.8 million increase in the out-of-home 
segment's Operating Cash Flow was offset by a $0.2 million decrease in the 
broadcast segment's Operating Cash Flow, a $1.2 million decrease in the 
sports & entertainment segment's Operating Cash Flow, and a $0.7 million 
decrease in the corporate segment's Operating Cash Flow for the quarter.  
Operating Cash Flow as a percentage of net revenue decreased to 27.4% for the 
three months ended June 30, 1997 from 29.3% for the comparable period in 1996.

DEPRECIATION AND AMORTIZATION.  Depreciation and amortization expenses 
decreased $0.5 million or 12.9% to $3.3 million in 1997 as compared to $3.8 
million in 1996.

INTEREST EXPENSE.  Interest expense for the quarter ended June 30, 1997 
remained unchanged from the comparable period in 1996.     

INCOME TAX EXPENSE. For the second quarter 1997, the Company incurred a $1.3 
income tax benefit compared to a income tax expense of $0.7 million for the 
second quarter 1996.  The benefit resulted from the recognition of a $4.6 
million deferred tax asset during the quarter.

NET INCOME.  Net income of $10.5 million for the three months ended June 30, 
1997 increased $1.3 million or 14.5% from $9.2 million for the comparable 
period in 1996.

                                       8
<PAGE>

SIX MONTHS ENDED JUNE 30, 1997 COMPARED WITH SIX MONTHS ENDED JUNE 30, 1996

NET REVENUE.  Net revenue for the six months ended June 30, 1997 increased 
$8.5 million or 6.5% to $139.7 million from $131.2 million for the comparable 
quarter in 1996.  The Company's out-of-home media segment's net revenue 
increased $6.2 million or 13.1% mainly due to increased national advertising 
sales.  The net revenue of the Company's broadcasting segment increased $4.1 
million or 9.9% resulting from the addition of television station KFTY, the 
local management agreement with television station KION, and increased rates 
and sales volumes. The Company's sports & entertainment segment's net revenue 
decreased $1.8 million or 4.3% due to the Sonics participating in 12 games of 
the 1997 NBA playoffs compared to 21 games in 1996.

OPERATING EXPENSES AND OTHER INCOME.  Operating expenses and other income 
increased $10.2 million or 10.4% to $108.7 million in 1997 compared to $98.5 
million in 1996.  In the Company's out-of-home media segment, operating 
expenses and other income increased by $3.6 million or 11.6% to $35.0 million 
from a combination of expenses related to increased sales and from the 
effects of inflation on operating expenses.  Operating expenses and other 
income in the Company's broadcasting segment increased by $3.6 million or 
14.3% to $28.4 million due to the addition of KFTY, the local management 
agreement with KION, and higher programming, promotion, and production 
expenses.  Operating expenses and other income from the Company's sports & 
entertainment segment increased $2.3 million or 6.0% to $40.3 million from 
higher basketball operating expenses related to players' salaries and 
transportation costs during the regular season offset by lower costs 
associated with the Sonics participating in 12 games of the 1997 NBA playoffs 
compared to 21 games in 1996.  In the Company's corporate segment, operating 
expenses and other income increased by $0.7 million or 17.5% to $5.1 million.

OPERATING CASH FLOW.  As a result of the above, the Company's Operating Cash 
Flow decreased $1.7 million or 5.3% for the six months ended June 30, 1997 
from the same period in 1996.  The $2.6 million increase in the out-of-home 
segment's Operating Cash Flow and a $ 0.5 million increase in the 
broadcasting segment's Operating Cash Flow was offset by a $4.1 million 
decrease in the sports & entertainment segment's Operating Cash Flow and a 
$0.7 million decrease in the corporate segment's Operating Cash Flow.  
Operating Cash Flow as a percentage of net revenue decreased to 22.1% for the 
six months ended June 30, 1997 from 24.9% for the comparable period in 1996.

DEPRECIATION AND AMORTIZATION.  Depreciation and amortization expenses 
decreased $0.8 million or 10.7% to $6.5 million in 1997 as compared to $7.3 
million in 1996.

INTEREST EXPENSE.  Interest expense for the quarter ended June 30, 1997 
increased slightly by $0.2 or 0.2% to $12.4 million from $12.2 million in 
1996 mainly due to higher average debt balances during the period compared to 
the same period in 1996.     

INCOME TAX EXPENSE. For the first six months of 1997, the Company incurred a 
$1.7 income tax benefit compared to a income tax expense of $0.9 million for 
the comparable period in 1996.  The benefit resulted from the recognition of 
a $6.2 million deferred tax asset during the period.

NET INCOME.  Net income of $13.7 million for the six months ended June 30, 
1997 increased $1.4 million or 11.4% from $12.3 million for the comparable 
period in 1996.

                                       9
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

As of August 1, 1997, the Company had approximately $14.0 million available 
for borrowing under the revolving credit facility of the Credit Agreement.  
The Credit Agreement and Subordinated Note Agreements require the consent of 
the banks and other lenders prior to any material expansion of the Company's 
operations.

Presently, borrowings under the Credit Agreement bear annual interest at 
either the prime rate plus 0.75% or LIBOR plus 2.00%.  The Senior Notes bear 
annual interest at 10.75%.  The Subordinated Notes bear average annual 
interest at 10.58%.  The borrowings and the Notes are subject to the 
Company's compliance with certain financial  ratios and covenants set forth 
in the Credit Agreement, Senior Note Indenture and Subordinated Note 
Agreements.  As of June 30, 1997, the Company was in compliance with all such 
ratios and covenants.  The borrowings under the Credit Agreement and the 
Senior Notes are secured by the pledge of stock of the Company's subsidiaries.

The Company's working capital increased to $22.4 million at June 30, 1997 
from $11.2 million at December 31, 1996.  For the periods presented, the 
Company financed its working capital needs from a combination of cash 
provided by operating activities and borrowings under the Credit Agreement.  
Historically, the Company's long-term liquidity needs for acquisitions have 
been financed by additions to its long-term debt, principally through bank 
borrowings or private placements of senior and subordinated debt.  Capital 
expenditures for new property and equipment have been financed with both cash 
provided by operating activities and long-term debt.  Cash provided by 
operating activities for the first six months of 1997 decreased to $10.3 
million from $12.0 million in the comparable period in 1996.

At June 30, 1997, the Company's capital resources consisted of $5.5 million 
in cash and cash equivalents and  approximately $14.0 million available under 
the Credit Agreement.

Capital expenditures for new property and equipment of $10.2 million in the 
first six months of 1997 were financed with a combination of cash provided by 
operating activities and borrowings under the Credit Agreement.  These 
capital expenditures were primarily for advertising signs, displays, 
vehicles, operating equipment, broadcasting equipment, and a new broadcast 
facility for KGET TV in Bakersfield, California.

On July 28, 1997, the Company entered into a Purchase and Sale Agreement with 
US Broadcast Group, L.L.C. and US Broadcast Group Licensee, L.P.I  to acquire 
television station WMGC licensed to the market of Binghamton, New York.  The 
acquisition, which will cost $9.0 million, is subject to the approval and 
consent of the Federal Communications Commission.  Currently, the Company is 
providing programming and sales services at WMGC under a local marketing 
agreement with US Broadcast Group, L.L.C. and US Broadcast Licensee L.P.I.  

                                       10
<PAGE>

PART II - OTHER INFORMATION

ITEM 4.  SUBMISSION OF MATTERS OF VOTE OF SECURITY HOLDERS

         (a)  The Annual Meeting of Shareholders of the Company was held on 
              May 5, 1997.

         (b)  The following directors were elected at the above meeting:  
              Barry A. Ackerley, Gail A. Ackerley, Richard P. Cooley, 
              M. Ian G. Gilchrist, and Michel C. Thielen.

         (c)  The result of the vote for the directors was as follows:

    DIRECTOR               FOR          AGAINST   ABSTAINED      NOT VOTED
    --------               ---          -------   ---------      ---------
Barry A. Ackerley      131,245,545         0        187,610      1,917,947
Gail A. Ackerley       131,244,945         0        188,210      1,917,947
Richard P. Cooley      131,245,155         0        188,000      1,917,947
M. Ian G. Gilchrist    131,245,355         0        187,800      1,917,947
Michel C. Thielen      131,245,355         0        187,800      1,917,947


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)  EXHIBITS:

              27.  FINANCIAL DATA SCHEDULE

         (b)  REPORTS ON FORM 8-K:

              NONE.


                                 SIGNATURES



PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE 
REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE 
UNDERSIGNED THEREUNTO DULY AUTHORIZED.

                                       THE ACKERLEY GROUP, INC.




DATED:  AUGUST 12, 1997                BY
                                          ------------------------------------
                                          DENIS M. CURLEY
                                          EXECUTIVE VICE PRESIDENT AND
                                          CHIEF FINANCIAL OFFICER,
                                          TREASURER AND SECRETARY
                                          (PRINCIPAL FINANCIAL OFFICER)





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