Sinclair Fourth Quarter Revenues Up 30.4%

Q1 Numbers

SINCLAIR BROADCAST GROUP, INC. fourth quarter 2016 total revenues increased 30.4% to $797.7 million, with net income doubling to $120.9 million ($1.32/diluted share).  Revenues for the company's SEATTLE radio stations were not broken out in the financial release; the company said that media revenues before barter increased 33.1% to $726.7 million, with political revenues up from $11.8 million to $113. million and digital up 21%.  The spectrum auction will add about $313 million for 2017 as the company sheds some licenses.

"With the spectrum auction coming to an end and the potential for deregulation on the horizon, we expect 2017 to be a pivotal year for SINCLAIR and the broadcast industry," said Executive Chairman DAVID SMITH.  "Additionally, the Federal Communications Commission is in process of conducting a rulemaking proceeding for the use of ATSC 3.0 (the Next Generation Broadcast Standard), which we expect will result in its approval later this year.  The new technology is expected to revolutionize the broadcast industry and provide for new business opportunities, products and services.  We anticipate the long-awaited deregulation of the industry's antiquated rules and the end of the spectrum quiet period to spur consolidation; a positive given that our industry has been prohibited from competing on a level playing field with other forms of media."

"2017 is off to a productive start with the launch of two emerging multicast networks, TBD and CHARGE!, which join our already successful multicast network, COMET," said President/CEO CHRIS RIPLEY.  "Our other platforms continue to grow with increased distribution of TENNIS CHANNEL and double digit percent growth in our digital revenues.  In addition, the auction proceeds will provide us additional optionality to further grow the Company and create value for our shareholders."

The company issued guidance for media revenues to rise 13-14% for first quarter to about $602 million.  Its board also declared a quarterly cash dividend of $0.18 per share on the Company's Class A and Class B common stock, payable on MARCH 15th to shareholders of record as of MARCH 1st.

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