Political advertising sank to $11.8 million in the fourth quarter of 2015 versus $80.3 million in the fourth quarter of 2014. Total revenues slipped 0.3% to $611.8 million, and net income was cut almost in half to $58.2 million from $95.4 million.
On Wednesday, early morning trading of Sinclair’s stock was hit hard -- down 7% to $28.38.
But Sinclair executives believe things will change in the coming months.
David Amy, EVP/COO, said in the company’s financial results fourth-quarter release: "We expect 2016 to be another record-breaking financial year, due to expected significant political advertising spending in the Presidential election year, growth in our digital sales offerings, and higher retransmission revenues on 60% subscriber renewals, of which we have already entered into agreements-in-principle on most.”
Recently, Sinclair entered into retrans deals with Mediacom, AT&T/DirecTV and Time Warner Cable.
Sinclair’s media revenues decreased 2.0% to $545.9 million versus $557.1 million in the fourth quarter of 2014. Digital revenues included in its media revenue results, climbed 33.1%.
In January 2016, Sinclair announced an agreement to purchase Tennis Channel for $350 million. Sinclair has said through current agreements with pay TV providers, it is increasing Tennis Channel U.S. subscriber base to 50 million homes from about 30 million homes.