Sinclair 3Q Media Revenue Climbs 16%

Sinclair Broadcast Group this morning reported that its third quarter media revenues grew 16% to $730.4 million from $629.6 million in 3Q 2017.

Breaking down the 3Q media revenue:

• Political revenues were $70 million in the third quarter versus $7 million in the third quarter of 2017, a non-election year.
• Revenues from digital businesses increased 20%, as compared to the 3Q 2017.
• Distribution revenues were were $331 million versus $285 million in the year-earlier quarter.

The company’s total 3Q revenues grew 18.9% to $766.3 million from $644.5 million in 3Q 2017.

Sinclair’s 3Q operating income was $157.8 million, including $13 million of costs related to the terminated Tribune Media Co. acquisition, versus operating income of $103.4 million in the prior year period, which included $9 million of Tribune-related and spectrum auction-related costs.

The company’s net income was $63.9 million versus net income of $30.6 million in the prior year period, and includes $18 million in ticking fee costs related to the financing commitments for the terminated Tribune acquisition.

Diluted earnings per common share were $0.62 as compared to $0.30 in the prior year period. The impact of ticking fees and Tribune-related costs in 2018, on a per-share basis, was $(0.24) and the impact of Tribune-related and spectrum auction-related costs in 2017 was $(0.07).

Chris Ripley, president-CEO, said: “Third quarter results came in ahead of guidance in all key financial metrics, and we expect to close out this year ahead of revenue and cash flow expectations, further improving the strongest balance sheet in our company’s history.

“Further driving value, we repurchased 5% of our total shares outstanding since the board approved an additional $1 billion share buyback authorization last quarter.

“Looking ahead to the fourth quarter, we just finished what is the biggest mid-term political advertising year in our company’s history with political advertising expected to be over 60% higher than the 2014 mid-term election cycle and over 20% higher than the 2016 presidential election year, based on our current portfolio.

“As a result of the growth in political revenue this year, our board has approved increasing our quarterly dividend per share from $0.18 to $0.20. The strength of political reconfirms that television remains the dominant and premium platform for consumer messaging and building brand awareness, and this year has certainly given us good reason to expect that 2020 will be even stronger.”

Read the company’s report here.