Sinclair’s second-quarter profit up 7 percent

Sinclair Broadcast Group Inc.’s profit increased 7 percent during the second quarter of 2011, helped by local auto dealer advertising.

The Hunt Valley-based company, which operates television stations in 35 markets, announced Wednesday that it had net income of $18.6 million, or 23 cents per share, during the second quarter. That’s compared to $17.3 million, or 21 cents per share, in the corresponding period of 2010.

Total revenue for the quarter was $187 million, a 2 percent increase from $183 million during the second quarter of 2010.

Analysts polled by Thomson Reuters had been expecting earnings of 24 cents per share, and total revenue of $186.1 million.

Helped by an increase in auto advertising, net broadcast revenue increased by 0.3 percent during the quarter, to $159.3 million, from the 2010 corresponding period’s $158.7 million.

“Despite the production disruptions in the auto industry as a result of the Japanese earthquake and tsunami, ad spending on our stations by the auto industry grew 2.4 percent in the second quarter,” David Smith, CEO of Sinclair, said in a statement. “While Toyota and Honda were affected the most, other auto dealers such as Hyundai, Kia and [General Motors] increased their marketing. During the quarter, we also experienced growth in paid programming/direct response, categories which had been down for quite some time, but appear to have turned the corner.”

Operating income increased to $57.6 million, from $56 million in the second quarter of 2010.

Local net broadcast revenue, which includes local time sales, retransmission revenue and other broadcast revenue, was up 5 percent in the second quarter, while national net broadcast revenue was down 12.8 percent from 2010’s second quarter.

Smith said that the political season, particularly through Republican presidential contenders, will make for “robust political spending” during 2012 primary elections.

“We further expect issue spending to increase as a result of many heated topics facing the country, particularly as a result of the nation’s debt crisis, increased government spending and continued high unemployment,” Smith said.

Locally, Sinclair owns and operates WBFF Fox 45, and has a marketing agreement with CW Baltimore.

Sinclair’s shares lost 45 cents, or 4.6 percent, Wednesday to close at $9.27.