Sinclair Broadcast Group Inc. (SBGI), a television broadcasting company, Monday lowered its third quarter revenue estimate due to an expected shortfall in political advertising revenues.
On August 6, the company estimated net broadcast revenues of $152.5 million to $154.4 million for the quarter, an increase of 2.0% to 3.4%, as compared to a year ago.
The company said that the earlier outlook included an estimated $9.7 million in political advertising revenues. Due to the difficult financial and economic environment, the company is now estimating net broadcast revenues to be approximately flat to third quarter 2007revenues of $149.4 million. The revised outlook includes an estimated $8.0 million of political advertising revenues in the quarter.On average, four analysts polled by First Call/Thomson Financial currently expect the company to report revenues of $182.71 million.
As compared to the company's prior guidance of the approximate $3 to $5 million estimated shortfall, $1.7 million is attributable to lower than previously expected political spending as a result of the candidates shifting their advertising buys from the local spot market to the networks. The remaining shortfall is primarily attributable to advertising cancellations by the automobile sector, both at the manufacturing and dealer levels, as well as the fast food sector. The telecommunications sector had lower than expected advertising budgets and, in general, local advertisers were able to purchase commercial spots at the last moment during the Olympics that we were expecting to air on non-NBC stations.
The Hunt Valley, Maryland-based Sinclair will release its final third quarter 2008 earnings results on Wednesday, November 5.
SBGI is closed Monday's trading down $0.11 or 1.68% at $6.45 on a volume of 421 thousand shares.
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