Citing the “difficult financial and economic environment,” Sinclair Broadcast Group has revised downward its guidance to Wall Street for Q3. The company had said August 6th that it expected revenues to be in a range of $152.5-154.4 million, an improvement of 2-3.4% over last year’s Q3. That had included an expected $9.7 million of political advertising. The new estimate is that revenues will be about flat with the year ago tally of $149.4 million. The revised outlook includes $8 million of political.
“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,” Sinclair said yesterday in a statement.