Sinclair Broadcast Group Third Quarter Revenues Rise
November 6, 2014 at 3:42 AM (PT)
SINCLAIR BROADCAST GROUP third quarter 2014 net broadcast revenues from continuing operations increased 47.9% to $448.1 million, with net income attributable to the Company up from $36.3 million to $48.3 million (36 to 49 cents/diluted share). Political revenues jumped from $2.7 million to $33.8 million; local net broadcast revenues, which include local time sales, retransmission revenues, and other broadcast revenues, were up 43.4% while national net broadcast revenues were up 64.2%. Excluding political revenues, local net broadcast revenues increased 41.9% and national net broadcast revenues increased 22.9%. Leading the way were the political, medical, telecommunications, furniture and drugs/cosmetics categories, while direct response, automotive, restaurants and fast food declined.
The company does not break out results for its SEATTLE radio cluster.
SINCLAIR President/CEO DAVID SMITH said, “This has been an active quarter with the expansion of our sports content offerings, strengthening our station portfolio, and solidifying our network relationships. We were also successful in opportunistically repurchasing 1.9 million shares of our common stock since our AUGUST earnings report, representing an approximate 9% return to our current share price. For 2014, we are on track to distribute to our shareholders, in the form of dividends paid and shares repurchased, approximately 50% of our 2014 as reported free cash flow.”
EVP/COO DAVID AMY added, “Despite some political races in our markets not being as highly contested as anticipated or as many ballot issues up for vote as in prior election years, we still expect to generate a record-breaking approximate $78 million of political advertising in fourth quarter. In addition, we are seeing positive ratings in some of the newly-launched network shows, as well as from our investments in college sports, local news and syndicated content.”
Fourth quarter 2014 net broadcast revenues from continuing operations, before barter, are expected to be approximately $533.7 million to $536.4 million, up 39.6% to 40.3% year-over-year, including $78 million in political revenues and barter and trade revenue of about $33 million.