The increase to $631.8 million is helped by a 40% rise in digital revenue. The company’s total revenue grew 2% to $679 million.
Sinclair 2Q Media Revenue Grows 4%
Sinclair Broadcast Group today reported that its second quarter media revenues, before barter, increased 4.2% to $631.8 million versus $606.3 million in the second quarter of 2016.
The company’s 2Q total revenues increased 1.9% to $679.3 million, versus $666.5 million in the prior year period.
Breaking down the 2Q media revenue:
- Political revenues were $5.4 million versus $16.7 million in the second quarter of 2016.
- Revenues from digital offerings increased 40% in the second quarter as compared to 2Q 2016.
The company’s 2Q operating income was was $118.8 million versus operating income of $129.1 million in the prior year period, reflecting $6 million of expenses related to the Tribune and Bonten Media Group acquisitions.
Net income was was $44.6 million versus net income of $49.4 million in the prior year period.
Diluted earnings per common share were were $0.43 as compared to $0.52 a year ago.
David Smith, executive chairman, commented: “2017 continues to be a defining year for Sinclair as our strategic acquisitions, partnerships and technological leadership drive the growth of the company. The pending addition of the Tribune Media Co. to the Sinclair family would create a leading media platform that ensures a free and local television model can thrive.
“The broadcast industry is primed to be reimagined with the approval of ATSC 3.0 (Next Gen TV) expected later this year and the modernization of broadcast regulation, allowing for our industry to compete in the new media ecosystem. Our Spectrum Consortium with Nextstar, Univision and Northwest positions us to reach more communities across the United States, as well as better serve our consumers and advertisers with new technologies that will super charge our capabilities and consumer offerings.”
Looking forward, Chris Ripley, president-CEO, said: “Although we expect core advertising to be flattish in the third quarter due in part to the absence of $11 million in Olympic advertising revenues received in third quarter of 2016, adjusting for the for-profit technical schools that went out of business in 2016, core advertising would be flat to up low single digit percents.
“Our digital business, excluding new digital investments, continues to outperform with mid to high 20% growth expected in the third quarter of 2017. On the cash flow front, in July, we received approximately $311 million of gross proceeds from the FCC Spectrum Auction, which we intend to use towards the funding of the Tribune acquisition,” Ripley added.
Read the company’s report here.