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/ 08.04.2010 12:00AM
TV Advertising Drives Sinclair’s Second-Quarter Boost
BALTIMORE: Cars are back big at Sinclair Broadcast Group
TV stations. The advertising segment grew 46 percent over last year for the
quarter ending June 30, 2010.
“Broadcast television advertising continues to grow, an indicator that the
economy is showing signs of recovery,” said Sinclair chief David Smith. “In the
second quarter, we experienced gains in nearly all of our major core
advertising categories, with the largest growth coming from the automotive
sector.”
Sinclair’s 58 TV stations generated $185.6 million versus $158.3 million last
year for the quarter. Net income was nearly $17 million versus $2.6 million
last year.
Political revenues were $3.8 million for the quarter versus $700,000 last year.
Local net broadcast revenues, including time sales and retransmission, were up
nearly 17 percent. National net revenues were up 28 percent.
“The third quarter’s core advertising sales are on pace to not only exceed the
same period in 2008 by approximately 9 percent growth, but also to approximate
the current year’s second-quarter core business, which is typically one of our
stronger quarters in any given year,” Smith said.
Sinclair (NASDAQ: SBGI) finished the quarter with cash and equivalents of $65.3
million versus $90.2 million March 31, 2010. Long-term debt was $1.25 billion
versus $1.28 billion. Shares of Sinclair gained 7 percent on today’s news to
reach $6.41. SBGI stock has made a year-to-date gain of nearly 60 percent.
In separate news, Sinclair said it was refinancing part of its bank credit
facility. The company said it proposed to raise a $270 million tranche B term
loan for maturity in October 2015, to repay the existing $305 million tranch B,
also maturing in October 2015. The proposal would give Sinclair more flexible
terms and greater incremental loan capacity.
-- Deborah D. McAdams
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Thursday 12:00AM
Broadcasters File Suit Against FCC’s Political File Rules
“The FCC decision to put the political files online will bring broadcasters into the 21st century, and will make already public information more easily accessible to everyone.” Free Press Senior Policy Counsel Corie Wright.