{"id":4299,"date":"2012-09-19T17:27:35","date_gmt":"2012-09-19T21:27:35","guid":{"rendered":"https:\/\/bejone03.expressions.syr.edu\/trf235\/?p=4299"},"modified":"2012-12-20T14:17:18","modified_gmt":"2012-12-20T19:17:18","slug":"sinclair-broadcast-group-steve","status":"publish","type":"post","link":"https:\/\/bejone03.expressions.syr.edu\/trf235\/2012\/09\/19\/sinclair-broadcast-group-steve\/","title":{"rendered":"Sinclair Broadcast Group"},"content":{"rendered":"
by Steven Geer<\/pre>\n
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Logo courtesy of www.sbg.net<\/p><\/div>\n
Headquarters –<\/strong> 10706 Beaver Dam Road, Hunt Valley, Maryland 21030<\/p>\n
Telephone<\/strong>\u00a0–<\/strong> (410)-568-1500<\/p>\n
Social Media – <\/strong>LinkedIn<\/a>,\u00a0Facebook<\/a>, Twitter<\/a> (@sbgi)<\/p>\n
Brief History<\/span><\/strong><\/p>\n
\"http:\/\/www.broadcastingcable.com\/photo\/262\/262314-Credit_Nicholas_Griner_Baltimore_Business_Journal.jpg\"
David B. Smith, President & CEO – Photo courtesy of Nicholas Griner, Baltimore Business Journal<\/p><\/div>\n
Sinclair Broadcasting Group is a telecommunications company located in Hunt Valley, Maryland, USA. Founded as Chesapeake Television Corporation in 1971 by Julian Sinclair Smith, its station ownership started in Balitmore (WBFF), Pittsburgh (WPTT\/WPMY) and Columbus (WTTE). In 1985, the remaining stocks of the business were bought out by Smith’s four sons and its name was changed to Sinclair Broadcast Group.<\/p>\n
Since 1988, David B. Smith<\/a> has served as President & CEO while the remaining brothers hold executive positions as well. Their leadership brought the company to a new level, expanding both its audience reach and content variety. In 1995, the company became publicly traded on NASDAQ with the symbol SBGI<\/a> [1][2].<\/p>\n
Sinclair Broadcasting was a pioneer of local marketing agreements in the early 1990’s. Though many stations are owned and operated by Sinclair, others are affiliated through LMA’s. Sinclair’s stations are affiliated with major networks like Fox, NBC, CBS, and ABC. Also, this company was one of the first to experiment with “prepackaged” news programs, produced by the news organization, News Central\u00a0<\/em>[3].<\/p>\n
Sinclair has a diverse array of holdings outside telecommunications as well.\u00a0Ring of Honor Wrestling<\/a> is just one of their many subsidiaries. They air the content they produce in certain markets and upload some episodes to YouTube.<\/p>\n
Here is Ring Of Honor Episode 54 from October 11, 2012:<\/p>\n
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Recent Acquisitions and News<\/span><\/strong><\/p>\n
A buying spree in 2011 and early 2012 added the assets of Four Points Media Group, the Freedom Communications stations group, and six stations from Newport Television [4][5][6]. Sinclair Broadcast Group now operates the largest number of local television stations in the United States.<\/p>\n
Their most recent acquisitions closed December 1, 2012\u00a0 and include stations in new and previously established markets. In addition to increasing the audience reach of Sinclair 3%, these purchases also increased the number of affiliated stations in Sinclair’s portfolio. Some of the stations now owned by Sinclair are WTTA (MNT) Tampa, KBTV (FOX) Beaumont, WKRC (CBS) Cincinnati, WOAI (NBC) San Antonio, WHP (CBS) Harrisburg, WPMI (NBC) and WJTC (IND) Mobile, KSAS (FOX) Wichita, and WHAM (ABC) Rochester.<\/p>\n
See all of Sinclair’s holdings and their information here<\/a>.<\/p>\n
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Sinclair’s Markets – Map courtesy of Sinclair Broadcast Group<\/p><\/div>\n
The failure of New Central <\/em>and Sinclair’s profile as a \u201cprofit first, journalism second\u201d broadcaster prompted the company to shift its focus to quality news in local markets. Sinclair’s recent acquisitions included many local news stations, atypical purchases for the company, but smart because of their powerful local presence. Sinclair has even joined the National Association of Broadcasters<\/a>, a sign that they’re willingness to participate in Washington alongside competitors [7].<\/p>\n
Hurricane Sandy had a large impact on many viewers in Sinclair’s markets, creating an opportunity for the company to serve its local constituents. During the storm, Sinclair provided non-stop coverage by “simulcasting” the news programs online. This allowed those without power to access it using mobiles phones and tablets. Online streaming and other technology platforms are being considered at Sinclair Group. Chief tech executive Del Parks spoke for the company claiming that the multiscreen experience is, “a very personal thing for our news operations.” Simulcasting was also used this fall in local office campaigns within certain Sinclair markets by streaming town hall debates on their website [8].<\/p>\n
On November 13, 2012 it was announced that Sinclair Broadcasting would be partnering with Datasphere<\/a>, a technology company aimed at small business solutions in major media and reaching the hyperlocal market. Sinclair’s television station websites will be retrofitted with Datasphere’s event calendars for local event lists in each market. An example of this calendar can be seen on WBFF Baltimore’s event website<\/a>. This will be used alongside a whole new technology platform at Sinclair Group. It is a full-sized service that connects local small businesses to media companies for advertising needs. Datasphere’s services will be introduced into 21 markets including Austin, Baltimore, Columbus, Dayton, Nashville and San Antonio [9].<\/p>\n
Sinclair attends many\u00a0industry conferences<\/a>. Their next conference is the JP Morgan Global HYLFC in\u00a0Miami Beach,\u00a0February 25-27, 2013.<\/p>\n
Financial<\/span> Overview<\/span><\/span><\/strong><\/p>\n
Sinclair’s income statement<\/a> for December 2, 2012 shows the stock price settling at $11.03; this is\u00a0still low compared\u00a0to their period of $14.00+ shares back in 2003-2004. This company has battled through the economic recession, however, showing staggering growth in returns over a three year period. In fact, they’ve quadrupled the 3 year return percentage of their competitor Belo Corporation<\/a> from 2009 to 2012 [10].<\/p>\n
SBGI Total Returns Comparison<\/strong><\/p>\n
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Chart courtesy of www.ycharts.com<\/p><\/div>\n
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Three year returns are a significant figure for a long-term shareholder of this company. High returns indicate a growing business. Sinclair has rebounded from the recession\u00a0and continues to show steady growth.<\/p>\n
High third quarter revenues this year were reported following Hurricane Sandy’s aftermath. The 44% increase from $181 million to $260 million was attributed to political advertising associated with the campaign season and a spike in automotive advertising on Sinclair’s stations. After reaching retransmission agreements with networks like Comcast and Dish, Sinclair found that higher retransmissions revenues also contributed to the figure [11][12].<\/p>\n
Hear or watch the rebroadcast of the 3rd quarter 2012 earnings results here<\/a>.<\/p>\n
Sinclair’s financial calendar<\/a> is as follows:<\/p>\n