Retrans Rises For Sinclair
Ad Slump Drives Revenue, Operating Income Down
Mike Farrell -- Multichannel News, 5/6/2009 11:33:31 AM EDT
Retransmission-consent revenue was the sole bright spot in the first quarter for TV station group Sinclair Broadcasting Group, rising nearly 8% in a period that continued to be marred by slumping advertising sales.
Retrans revenue rose to $21.1 million in the first quarter, up 7.7% from $19.6 million in the prior year. But that wasn't enough to stem the sharp decline in advertising revenue - local ad sales were down 18.3% and national ad sales declined 31.3% in the period. Overall, revenue dipped 18.4% in the quarter to $131.3 million, besting the company's previous forecast for a low-to mid-twenties percentage decline.
Sinclair reported an operating loss of $106.7 million in the quarter, compared to an operating income of $46.2 million in the prior year. However, that loss was due mainly to a $130.1 million one-time non-cash goodwill and intangible asset impairment charge. Sinclair also reported a net loss of $85.7 million ($1.06) per share, compared to a net profit of $15 million (17 cents per share), mainly because of the impairment charge. Without the one-time charge, net income would have risen slightly to $15.2 million (19 cents per share), the company said.
In a statement, Sinclair CEO David Smith predicted more of the same in the second quarter, with revenue declines expected to be in the high teens percentages.
"Nonetheless, we continue to be disciplined on the cost side and look for additional ways to offset the declines in revenues," Smith said in the statement, adding that TV station operating expenses were down 10.4% in the first quarter, largely because of measures implemented in the fourth quarter of 2008.
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Humm...Extorition - the remaining bright spot in a dying industry. When will the madness stop...
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