Sinclair's business model seems to rely on staying under the radar of regulators due to its reliance on outsource-like arrangements with other stations which allows them to control the assets of networks without owning them outright. Ironically, its top line growth in 2004 will be driven by political ads because it has so many stations in swing states. But it also relies on holiday ads coming up. Although they claimed that their revenue miss came from the hurricanes, it looks like drops in the auto sector were weakening them anyway. They are exposed in auto.
Information coming quickly but below is a quick and dirty snapshot of the revenue stream.
Its revenue pie can be analyzed by licensee, programming, or type of advertiser.
Type of Licensee
Fox represents only 20 stations but contributes disproportionately to revenue.
Fox 34% revenue
WB 32% of revenue
ABC 18% revenue
Type of Programming
Syndicated 44%
Network 29%
News 15%
Direct advertising 7.1%
Sports 3%
Type of ad
Auto 24%
Prof Services 12% (doctors in Florida?)
Fast food 6.4%
Retail 6.2%
Paid programs 8.2%
Exposure in autos: they sank $20 million into Summa Holdings Ltd, which owns car dealerships and retail tires. Wonder how much of their booked ads come from that subsidiary? (control 18% of it).
Auto sector important.
We know the names of the advertisers, not hard to plug it in.