Sinclair’s Q4 revenue dips 8% while income rises thanks to GOP tax plan

The company attributed the dip in revenues primarily to less political advertising. (Pixabay)

Sinclair Broadcast saw its fourth-quarter total revenue fall 8% to $734 million, down from about $798 million one year ago. But the company’s net income spiked, thanks in part to the GOP tax plan.

The company attributed the dip in revenues primarily to less political advertising. In the fourth quarter of 2016, Sinclair pulled in $113 million in political advertising. That same shortfall led to a decline at Sinclair’s media segment, where revenues fell 5.7% to $685.4 million. But revenues from Sinclair’s digital businesses rose 64% during the quarter.

"The fourth-quarter 2017 performance was better than expected with results that exceeded our previously provided guidance for key financial metrics, after adjusting for transaction, legal and other one-time charges," said Sinclair President and CEO Chris Ripley in a statement. "While the first quarter of 2018 is off to a slower than expected start due to our low percentage of NBC affiliates, which is the network that aired the Super Bowl and Olympics, we are looking forward to growth drivers from the upcoming mid-term elections and the positive effects from tax reform and a growing economy."


Like this story? Subscribe to FierceVideo!

The Video industry is an ever-changing world where big ideas come along daily. Cable, Media and Entertainment, Telco, and Tech companies rely on FierceVideo for the latest news, trends, and analysis on video creation and distribution, OTT delivery technologies, content licensing, and advertising strategies. Sign up today to get news and updates delivered to your inbox and read on the go.

RELATED: Sinclair's Q3 earnings take a hit from hurricanes, acquisitions

Meanwhile, net income for the quarter totaled $443.5 million, shooting well ahead of the $121 million posted one year ago, due in large part to a nonrecurring $272 million tax benefit Sinclair got after remeasurement of its deferred tax assets and liabilities.

“We are confident the U.S. Tax Cuts and Jobs Act tax reform legislation will result in a favorable effect through the many small and medium-sized local businesses we support on the advertising front. Meanwhile, we continue to work with the required governmental agencies towards the successful acquisition of Tribune Media Company, expected to close in the second quarter of 2018,” said Sinclair Executive Chairman David Smith in a statement.

Suggested Articles

Xumo, a free, ad-supported streaming video service, today announced it’s adding ABC News Live to its platform in the U.S. and Canada.

AT&T is rounding out the executive team for its WarnerMedia Innovation Lab, which is set to open in New York City in spring 2020.

Tubi is escalating its fight against Netflix by launching a new ad campaign highlighting what's not on the subscription service.