Sinclair Broadcast Group swung to a profit in the third quarter as advertising continued to recover from the pandemic, but its revenue missed Wall Street estimates.
The Hunt Valley-based TV broadcaster reported income of $19 million, or 25 cents per share, for the three months that ended Sept. 30, a turnaround from a net loss of $3.3 million in the third quarter of 2020.
Revenue for the quarter totaled $1.53 billion, about even with the year ago period but missing analysts’ average estimate of $1.58 billion.
As the economy emerges from the pandemic, core advertising for the owner of television stations and sports networks has been recovering and growing compared with pre-pandemic 2019, with the exception of the automobile category, said Chris Ripley, Sinclair’s president and CEO, in an announcement Wednesday.
“The continuing headwinds from auto component shortages, which in the near-term has reduced automotive advertising revenue, has been mostly offset by higher services and sports betting advertising demand, trends we expect to continue throughout the remainder of the year and into next year,” Ripley said.
The company expects a smaller decline in subscriber rates and strong political advertising in the mid-term election cycle next year, Ripley said.
The broadcaster said it will look for growth in its broadcast, news and sports segments and expects to continue to integrate sports betting across its sports network platforms, he said.
The company recently reported a cyber-attack that disrupted some of its stations and websites and suspended operations of its Ring of Honor pro wrestling unit while it reevaluates the business.
“Our employees’ quick response and creative workarounds have helped us restore a significant portion of our systems,” Ripley said in the announcement. “As we work to complete our investigation, we will look for opportunities to enhance our existing security measures.”
