Increases across the board in local, national, political and retrans drive the $220 million in revenue. The board authorizes a 25% dividend increase to 15 cents per share.
In second quarter results released today, Sinclair Broadcast Group reported that net broadcast revenue from continuing operations was $220 million for the three months ended June 30, an increase of 38.1% versus the prior-year period’s $159.4 million.
The company had operating income of $72 million as compared to operating income of $58.2 million in the prior-year period.
Net income was $30.1 million, versus $18.6 million a year ago.
Sinclair reported diluted earnings per common share of $0.37, versus $0.23 in the prior-year period.
Breaking down the contributors to revenue:
- Political revenue was $11.4 million in the second quarter 2012, versus $1.2 million in second quarter 2011.
- Local net broadcast revenue, which includes local time sales, retransmission revenues and other broadcast revenues, was up 32.1%, while national net broadcast revenue, which includes national time sales and other national broadcast revenues, was up 58.2% versus the second quarter 2011.
Excluding political revenue, local net broadcast revenue was up 31% and national net broadcast revenue was up 34.9% in the second quarter. On a same-station basis, excluding political revenue, local net broadcast revenue was up 4.5% and national net broadcast revenue was up 4.7%.Brand Connections
- Advertising categories, on a same station basis, that reported the largest spending increases in the second quarter 2012, as compared to the same period last year, were automotive, services and direct response, while fast food, schools and telecommunications were down the most. Automotive, Sinclair’s largest category, was up 16.8% in the second quarter 2012 on a same-station basis.
“Second quarter results were excellent, as political advertising spending in the quarter was almost triple our expectations,” commented David Smith, president-CEO of Sinclair. “Despite the markets’ concern about the global economy, our core revenues on a same station basis grew 4.6%.
“We continue to position the company for long-term growth as we take advantage of what we believe to be under-valued assets relative to historic public equity multiples. In the second quarter, we closed on the acquisition of the Freedom Communications television stations and recently announced the acquisition of six of the Newport Television stations. To date, we have announced approximately $1 billion in total assets acquired or to be acquired projected to represent almost $150 million of incremental blended cash flow. In addition, we were able to renew our Fox affiliation agreements seven months early, thereby removing any uncertainty regarding our on-going relationship with the network and securing our affiliation in our flagship market.”
Smith continued, “As a result of the accretive acquisitions, the board of directors has decided to return a portion of that incremental cash flow to our shareholders in the form of a 25% increase to the quarterly dividend rate, bringing the dividend per share to $0.15 for the quarter.”
Read the company’s results here.