Sinclair Revenue Up 38% in Q2
Political advertising almost triples expectations, core rev up 4.6%, and a billion spent on acquisitions
By Michael Malone -- Broadcasting & Cable, 8/1/2012 9:55:17 AM
"Second quarter results were excellent, as political advertising spending in the quarter was almost triple our expectations," commented David Smith, president and CEO of Sinclair. "Despite the markets' concern about the global economy, our core revenues on a same station basis grew 4.6%."
Following an active M&A period for Sinclair, including the acquisition of six Newport TV stations for $412.5 million, Smith said Sinclair remains in growth mode. "We continue to position the company for long term growth as we take advantage of what we believe to be undervalued assets relative to historic public equity multiples," he said. "In the second quarter, we closed on the acquisition of the Freedom Communications television stations and recently announced the acquisition of six of the Newport Television stations. To date, we have announced approximately $1 billion in total assets acquired or to be acquired projected to represent almost $150 million of incremental blended cash flow."
Political revenues were $11.4 million in the second quarter, vs. $1.2 million in second quarter of 2011. Local net broadcast revenues were up 32.1% in the quarter, while national net broadcast revenues increased 58.2%.
The earnings report mentioned the "assignable option" arrangement announced between Fox and Sinclair in May, which could potentially see the two broadcasters swap stations in markets that include Baltimore, Raleigh and Cincinnati, among others. The options are exercisable through March 30, 2013.
"The agreement calls for up to $52.7 million in cash payments to be made to Fox," said Sinclair, "of which the company paid $25 million in June 2012. Should Fox exercise their option, the amount owed by [Sinclair] decreases by $25 million."
Sinclair expects third quarter station net broadcast revenues to be around $223.1 million to $228.1 million, up 46.9% to 50.2% as compared to third quarter 2011.
"With second quarter results coming in better than expected, those same drivers are adding even more momentum as we enter the back half of the year," said David Amy, EVP and CFO.
Sinclair owns and operates, programs or provides sales services to 74 television stations in 45 markets.
No related content found.
Most Popular Pages
No Top Articles