Sinclair 4Q Rev Up 59%, Year’s Up 42%

Sinclair Broadcast Group today reported net broadcast revenues from continuing operations rose 58.8% year-over-year to $287.1 million in the fourth quarter of 2012 and were up 42.1% year-over-year to $920.6 million for all of 2012.

The year was “remarkable,” said CEO David Smith in a statement. “We successfully closed on 30 TV stations, recorded record levels of political advertising, benefited from a rebound in the automotive advertising category, and achieved historic levels in key financial metrics. As we look forward to 2013, we are very excited about our prospects, including starting the year with the Super Bowl on our 11 CBS stations. While we have led the current consolidation trend in the broadcast industry, we believe there are still many opportunities for us to continue to acquire quality television assets, unlock hidden value, and strengthen our competitive position.”

The company had operating income of $119.1 million in the quarter, as compared to operating income of $63.5 million in the prior year period. Net income was $59 million in the quarter, versus $22.7 million in the prior year period.

Political revenues were $54.1 million and $96.9 million in the fourth quarter and full year 2012, respectively, versus $4.1 million and $8.3 million in fourth quarter and full year 2011, respectively.

Local net broadcast revenues, which include local time sales, retransmission revenues, and other broadcast revenues, were up 33.7% in the fourth quarter 2012, while national net broadcast revenues, which include national time sales and other national broadcast revenues, were up 58.8% versus the fourth quarter 2011.

Excluding political revenues, local net broadcast revenues were up 29.3% and national net broadcast revenues were up 41.5% in the fourth quarter 2012 versus the fourth quarter of 2011. On a same-station basis, excluding political revenues, local net broadcast revenues were down 2.0% due primarily to increased demand from political advertising, while national net broadcast revenues were up 1.5%, versus the fourth quarter of 2011.

Advertising categories, on a same-station basis, that reported the largest spending increases in the fourth quarter 2012, as compared to the same period last year, were automotive, which was up 6.4%, and direct response. Categories that declined were services, schools, pharmaceuticals and restaurants.

For the full year, net broadcast revenues from continuing operations were $920.6 million, an increase of 42.1% versus the prior year period result of $648 million. The company had operating income of $329.3 million in the 12-month period, as compared to operating income of $225.6 million in the prior year period. Net income attributable to the company was $144.7 million in the year, versus net income of $75.8 million in the prior year period.

“2012 was a remarkable year for our company,” commented David Smith, Sinclair president-CEO. “We successfully closed on 30 TV stations, recorded record levels of political advertising, benefited from a rebound in the automotive advertising category, and achieved historic levels in key financial metrics. As we look forward to 2013, we are very excited about our prospects, including starting the year with the Super Bowl on our 11 CBS stations. While we have led the current consolidation trend in the broadcast industry, we believe there are still many opportunities for us to continue to acquire quality television assets, unlock hidden value, and strengthen our competitive position.”