Sinclair Reports Q3 Profit Drop

Nov 4, 2004  •  Post A Comment

Sinclair Broadcast Group on Thursday said its third-quarter profit tumbled 46 percent to $3.5 million from a year-earlier figure of $6.5 million as weaker nonpolitical advertising and hurricane-induced losses at the company’s Florida stations took a toll on overall results. Total revenues rose 1 percent to $181.5 million, thanks to modest increases in broadcast revenue.

Broadcast revenue was helped by a strong increase in political advertising spending at Sinclair’s 62 television stations. Political spending hit $8 million, versus $1.3 million a year earlier.

Nonpolitical advertising was weaker in the quarter, with national falling 4 percent, while local was down 2 percent. The company was also impacted by weaker advertising dollars at its Fox and WB affiliates, which partially offset gains at the other network-affiliated stations.

Another factor weighing on the group was the impact of the Florida hurricanes on stations there. Sinclair last month warned the company would see revenue decline by $500,000 as a result of advertising cancellations related to the storm.