Sinclair Revenues Up For Third Quarter
November 6, 2013 at 5:07 AM (PT)
SINCLAIR BROADCAST GROUP, INC. third-quarter net broadcast revenue rose 34.7% to $303 million (but 11% on a same-station basis, excluding the acquisition of FISHER COMMUNICATIONS television and radio stations and other TV properties and excluding political revenue). Net income rose from $26.2 million to $36.3 million (32 to 36 cents/share). The company did not break out the performance of its SEATTLE radio cluster acquired in the FISHER deal, SINCLAIR's only radio properties.
Pres./CEO DAVID SMITH said, "Our third quarter 2013 results showed an increase of 11.0% in net broadcast revenues on a same station basis, excluding political revenues, which was driven by growth in our retransmission revenues and core business. We are pleased with our solid third quarter results and expect to continue to grow our revenue share and provide additional value to our shareholders through our station acquisitions and the synergies and efficiencies of scale that we are creating as we continue to consolidate. Including all pending station acquisitions, we are the largest and one of the most diversified TV broadcasters in the country and have been the most active TV broadcasting consolidator with over $3.0 billion in assets purchased and announced. Television continues to be the preferred medium for advertisers and consumers top choice for news and entertainment. As we look ahead, we are beginning to assess other possible avenues for growth after the industry consolidates, including enhancing our original content offerings and distribution, the pursuit of strategic partnerships and monetizing spectrum holdings, all with the intent of creating additional value for our shareholders."
EVP/CFO DAVID AMY added, "For the fourth quarter of 2013, we expect to see continued growth in core local and national advertising. While we expect our political revenues to benefit from the implementation of the Affordable Care Act, the uncertainty surrounding the government's computer enrollment issues has resulted in slower than expected state spending on related advertising. Advertising in the automotive sector, however, continues to be robust, growing 9.3% in the third quarter over the same period last year, as sales of new cars hit their highest levels since 2007. That momentum is carrying through to the fourth quarter with auto advertising, on a same station basis, expected to grow by high single digits over the fourth quarter last year."
The company projects fourth quarter net broadcast revenues from continuing operations, before barter, to rise 28.2% to 29.6% to approximately $368.1 million to $372.1 million, but down 11% to 12.4% on a same-station basis due to the absence of political advertising in 2013 ; excluding acquisitions and political revenues, same station net broadcast revenues are estimated to rise 6.7% to 8.4% in fourth quarter.
SINCLAIR also declared a quarterly cash dividend of 15 cents/share, payable DECEMBER 13th to shareholders of record on NOVEMBER 29th.