Sinclair 4Q Media Revenue Grows 86%

Sinclair Broadcast Group this morning reported that its fourth quarter 2019 media revenues grew 86% to $1.581 billion versus $849 million in 4Q 2018. Breaking down the media revenue:

• Political revenues were $23 million versus $150 million in 4Q 2018, an election year.
• Distribution revenues were $1.1 billion versus $334 million.
• Revenues from digital businesses grew 36%

For the company as a whole, total revenue increased 82% to $1.6 billion versus $893 million in 4Q 2018.

The company reported net income of $44 million versus $206 million in the prior year period, an election year.

Operating income was a $277 million, including $45 million of non-recurring costs for transaction, legal, litigation, and regulatory costs (“adjustments), versus operating income of $263 million in the prior year period, which included $3 million of adjustments. Operating income when excluding the Adjustments, increased 21% to $322 million from $266 million for the same prior-year period.

Diluted earnings per common share were $0.47 as compared to $2.10 in the prior year period.

Chris Ripley, president-CEO, said: “2019 was a transformational year for our Company, as we almost tripled our enterprise value and transitioned into a more diversified media company. As the owner of the largest group of regional sports networks (RSNs) and a leading provider of local news, Sinclair is well-positioned to capitalize on the most desirable segments of the broadcast and media industry — live local content that resonates with viewers.

“In 2020, our focus will be on growing our share of what is believed to be unprecedented political advertising spending, seeking new organic opportunities, adding more relevant content, and deploying new technologies that solidify Sinclair as a leader in the industry.”

Also on Monday, Sinclair announced that its board of directors declared a quarterly cash dividend of $0.20 per share on the company’s Class A and Class B common stock. The dividend is payable on March 20 to shareholders of record at the close of business on March 9.

Read the company’s report here.