Sinclair: Overall Revs Dip In 4Q, Auto Up Now

Sinclair Broadcast Group posted much better advertising revenue results than anticipated for its fourth-quarter 2009.

Because of better-than-expected automotive business, Sinclair's overall net broadcast revenue was down just 6.4%. It had been expecting double-digit percentage declines between 11% and 13%.

Better news is on the way. In the first quarter of 2010, the station group is on track to see declines in the low single digits versus double-digit declines of a year ago. In addition, it expects auto advertising to be up almost 20% in the period.

The company says these are good results considering that only three of its 58 stations have high ad-priced programs, the Vancouver Olympics or the Super Bowl. It adds that in all but two markets reported, Sinclair stations grew total revenue share, increasing on average to 17.5% from 16.8% in fourth-quarter 2009 versus 2009.

Broadcast revenue for the fourth quarter was $153.9 million, down from $164.4 million. As with the other TV stations group, political revenues dropped -- down to $4.1 million in the fourth quarter of 2009 versus $25.6 million.

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However, looking to the future, CEO David Smith commented on the recent Supreme Court ruling about corporate and union political spending to securities analysts as fourth-quarter results were reported. He said it could introduce an additional $500 million to the market.

"That money is not going to go to the newspapers, not going to go to the Internet," said Smith. "It's not going to anybody but us. All politics is local, as I'm sure you'll remember."

Sinclair cut its net loss in fourth-quarter 2009 to $69.6 million from $284.0 million.

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