Dallas, Texas 11/11/2013 (Financialstrend) – In news that brought a lot of cheer to investors, Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) announced an increase in 38% profits for the third-quarter.
The resounding revenue earnings for the quarter were due to higher revenues earned through Television advertising. Besides, the bottom-line was further bolstered with higher revenues earned from increase in fees for broadcasting cable TV signals.
Sinclair is one of the big names in Hunt-Valley and posted its earnings for the quarter at $36.6 million. The earning per share was $0.36 and definitely higher than last quarter earnings of $0.32.
Chief Executive Officer of Sinclair, David Smith commented that the results exceed estimated expectation of 23 cents for a share. The increase in earnings was due to the acquisition of Fisher Communication. Additionally, the guidance for the fourth quarter too has been positive, resulting in positive market movement of Sinclair’s shares.
In addition to the acquisition, the increase in the broadcast fees – by a whopping 11% – have definitely led to the strong showing, believe analysts.
Though, technically, it was ‘retransmission’ Sinclair was able to strategize well on this service and earn substantial good earnings.
Besides, political advertising an increasingly attractive advertisement revenue earning segment for Sinclair is the automotive-based content. Additional sectors that have increased their advertising reach are- furniture, grocery, home products as well as media.
Additionally, income came in from the acquisition of other stations – Titan Television Broadcast Group. Moreover, Sinclair is poised to gain other stations, which are currently property of New Age Media at a cost of $90 million.
Senior executives of Sinclair believe that the growth percentage for the company has been sustained due to multi-pronged acquisitions and strategic fees additions. For the next quarter, Sinclair is expected to rework its prospects by improving the local content across its various units and network.