Sinclair Broadcast Group reported total second quarter revenues of $554.2 million, a 21.1% increase over the prior year’s second quarter. Operating income was $114.3 million, an increase of 11%, and net income was $45.8 million. Net broadcast revenues increased 24.3% to $502.3 million in the quarter, with digital revenues up 32%.
"We exceeded our guidance in all key financial metrics, due in part to higher retransmission consent fees and favorable cost outlays," said David Smith, president and CEO of Sinclair. "We continue to make significant progress with regard to content initiatives and distribution rights, particularly in the areas of sports and first-run programming. We completed our renewals with the CBS and CW networks, securing five-year agreements that represent fair value to us both.”
Smith cited the awards given to Sinclair’s stations, which he called “a reflection of our commitment to outstanding reporting we are doing as the largest producer of local news in the country."
Sinclair anticipates third quarter net broadcast revenues to be up 7.9% to 8.6% year-over-year.
"On a political advertising excluded basis, we believe our third quarter core advertising revenues will finish slightly better than our second quarter results," said David Amy, executive VP and chief operating officer. "For the fourth quarter, we expect to benefit from additional retransmission consent agreement renewals, increased digital advertising revenues from the staged launch of our content management system, and an improvement in Fox prime-time programming."