Sinclair 4Q Media Rev. Rises 33% To $727M

Sinclair Broadcast Group today reported that in the three months ended Dec. 31, its media revenues, before barter, increased 33.1% to $726.7 million versus $545.9 million in the fourth quarter of 2015.

And for the full year, revenues increased 23.3% to $2.737 billion, versus $2.219 billion in 2015. Operating income was $602.9 million, an increase of 42.6%, versus operating income of $422.7 million a year earlier. Net income was $245.3 million, versus net income of $171.5 million in 2015.

The company’s 4Q total revenues increased 26.5% to $693.8 million, versus $548.4 million in the prior-year period.

Breaking down the 4Q media revenue:

• Political revenues were $113.2 million versus $11.8 million in the fourth quarter of 2015. 

• Revenues from digital offerings increased 21% in the fourth quarter as compared to the fourth quarter of 2015.

The company’s 4Q operating income was $233.4 million, an increase of 87.9%, versus $124.2 million in the prior year period.

Net income was $120.9 million, versus $58.2 million in 4Q 2015.

Diluted earnings per common share were $1.32 as compared to $0.61 in the prior year period.

“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 David Smith, Executive Chairman.

“Additionally,” he continued, “the Federal Communications Commission is in process of conducting a rulemaking proceeding for the use of ATSC 3.0 …, 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.”