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SBGI - Sinclair Broadcasting Group


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I was happy when they said they were going to be bringing the debt levels down, but to issue stock at $42/share when it still seems a undervalued to me doesn't instill a lot of confidence.

 

I have not looked at Sinclair recently but the last time I looked, it did not seem that cheap to me on an EV/EBITDA basis, at least relative to their peers in the industry. I agree with the comment about acquisitions like the Tennis Channel. I don't think adding more cable channels is a winning strategy.

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I was happy when they said they were going to be bringing the debt levels down, but to issue stock at $42/share when it still seems a undervalued to me doesn't instill a lot of confidence.

 

I have not looked at Sinclair recently but the last time I looked, it did not seem that cheap to me on an EV/EBITDA basis, at least relative to their peers in the industry. I agree with the comment about acquisitions like the Tennis Channel. I don't think adding more cable channels is a winning strategy.

 

I think EV/EBITDA is ~ 8-9x right now. I don't think that's unreasonable, and they're throwing off lots of cash.

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I remember when that Hyman guy 1st showed up on WEAR in my home town.

 

His segments were so offensive, I quit watching their news broadcasts altogether.

 

I subsequently found that the non-Sinclair station in Mobile, AL (40 miles away) actually did a better job of covering Pensacola than WEAR.

 

I tune in once in a while just to admire how they've begun weaving national "news / opinion pieces" into local segments.

 

I like the way local anchors will do a hand off to the national guys & make it look so seamless (I'm simultaneously Orwelled by it...)

 

These guys are definitely evolving the fox news model!

 

Will the FCC allow "fake news" to REALLY get a foothold across America?

 

Why did they ever allow such concentration in the hands of ANY operator, conservative or liberal?

 

We are edging ever closer to Idiocracy...

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Unfortunately, I have seen Bloomberg descend into the swamp with a case of TDS, Trump Deranegement Syndrome & they are clueless they have it.  They have to send their reporters for a multi-year assignment to someplace outside the Coastal elite cities.  This has also slipped into its business reporting which includes as much opinion (at times very biased & ignorant) as fact.  This is sad to see as Bloomberg used to much more fact based.  I guess a business opportunity for the independents like Sinclair & Gray.  Another new revenue source.

 

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None of you are worried about cord-cutting? I've don't have cable or telephone service. My parents occasionally watch broadcast tv but very occasionally. They often watch stuff on youtube.

 

I recently went to a family birthday where some relatives were deciding on whether to get a Kodi box.

 

How much is broadcast worth? I basically think that its a business in runoff, with the spectrum possibly being valuable. And maybe they can do something with sports and politics (the ultimate sport). Because these are the only places I see people tuning in. And maybe local news.

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None of you are worried about cord-cutting? I've don't have cable or telephone service. My parents occasionally watch broadcast tv but very occasionally. They often watch stuff on youtube.

 

I recently went to a family birthday where some relatives were deciding on whether to get a Kodi box.

 

How much is broadcast worth? I basically think that its a business in runoff, with the spectrum possibly being valuable. And maybe they can do something with sports and politics (the ultimate sport). Because these are the only places I see people tuning in. And maybe local news.

 

The local news and sports business continues to grow into a big business for Sinclair, and was likely a large reason behind the Tribune acq. Pay attention to growth in retransmission fees—which is the money cable, satellite, and MVNOs pay to retransmit local broadcast signals. Even skinny bundles often include local news and sports options, so the fear of these getting dropped with cord cutting seems a little overblown to me.

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Total revenues increased 1.9% to $679.3 million, versus $666.5 million in the prior year period.

 

Operating income was $118.8 million versus operating income of $129.1 million in the prior year period, reflecting $6 million of expenses related to the Tribune and Bonten Media Group acquisitions.

Net income attributable to the Company was $44.6 million versus net income of $49.4 million in the prior year period.

 

Diluted earnings per common share were $0.43 as compared to $0.52 in the prior year period.

 

Capital expenditures in the second quarter of 2017 were $13 million.

 

Debt on the balance sheet, net of $796 million in cash and cash equivalents, was $3.272 billion at June 30, 2017 versus net debt of $3.268 billion at March 31, 2017.

 

 

Up 5% premarket to down 5% now. I haven't listened to the conference call yet, but I imagine something was said that the market doesn't like?

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Now we know why SBGI went down.  The market appears to be thinking that other groups will be effected by this but IMO it appears like a one off with SBGI to reduce the competition.  I do not think it will work however.

 

Packer

 

Sorry, I'm not sure I fully follow here. Can you explain further? I assume you are referring to: https://www.bloomberg.com/news/articles/2017-08-02/fox-is-said-in-talks-with-ion-media-to-operate-local-tv-stations

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