Political Ad Sales Boost Sinclair In First Quarter
May 4, 2016 at 4:55 AM (PT)
SINCLAIR BROADCAST GROUP, INC. total revenues rose 14.7%, with political revenue being the difference-maker. Net income attributable to the Company was slightly down from $24.3 million to $24.1 million (diluted earnings per common share flat at $0.25). The company does not break out results for its sole radio cluster in SEATTLE.
"2016 is off to an exciting start with our first quarter results exceeding guidance primarily on higher political revenues," said Pres./CEO DAVID SMITH. "In MARCH, we closed on the acquisition of TENNIS CHANNEL and will shortly be launching CIRCA, our digital-only news product created for the next generation of viewers.
"But perhaps most exciting this quarter is the swift progress we have made with regards to the Next Generation Broadcast Standard (ATSC 3.0). Our demonstrations at the NAB SHOW of Next Gen's capabilities, potential business models and the consumer experience were very well-received by broadcasters, consumer electronics manufacturers, and members of the press and government. The industry recently submitted its request for approval to the FCC, which has in turn begun its consideration process. We are thrilled by the level of support, excitement and anticipation and look forward to enhancing the consumer broadcast experience."
SMITH added, "We are pleased to announce that the Board of Directors has approved a 9% increase in our quarterly dividend, bringing the quarterly dividend per share to $0.18. The growth of our Company has resulted in meaningful free cash flow, and while our intent is to primarily reinvest that cash flow in revenue-generating acquisitions and investments, this dividend increase reaffirms our commitment to create and return value for our shareholders."
SINCLAIR issued second quarter guidance of an 18.9-19.8% rise in media revenues before barter to about $598.3-603.0 million, with a jump in political revenues from $4 million to $15-17 million the catalyst.