UPDATE 2-Sinclair Broadcast Q4 profit up, cuts 7 pct jobs
* Q4 EPS $0.24
* Sees decline in Q1 net broadcast revenue
* Cuts 7 pct jobs, suspends dividend
* Shares up 5 pct (Recasts; adds analyst comments, conf call details, share movement)
By Mansi Dutta
BANGALORE, Feb 11 (Reuters) - TV station owner Sinclair Broadcast Group Inc (SBGI.O) reported fourth-quarter earnings above analysts' estimates, as the U.S. presidential campaign drove political advertising revenue during the quarter, but said it suspended its dividend and cut its workforce by 7 percent.
Shares of the company rose 36 cents to $1.74 but pared some gains to trade up 5 percent at $1.45 Wednesday morning on Nasdaq.
Analyst Edward Atorino of Benchmark Co said the company's financial condition was "pretty good."
"They are doing better than just about anybody in the television business if you look at their market share and their performance in the fourth quarter," Atorino told Reuters.
However, the company, which cut 200 jobs, forecast a weak first quarter.
"Most of our advertising categories are expected to finish the first quarter down from first quarter last year due to the economic recession," a company executive said on a conference call with analysts.
Ad revenue categories that are expected to decline most are automotive, services, fast food and movies, the executive said. Automotive advertising is expected to finish the first quarter down about 45 percent to 50 percent from the prior year.
The company expects net broadcast revenue from continuing operations in the first quarter, before barter, to be down in the low- to mid-20 percent range.
Sinclair, whose competitors include Hearst-Argyle Television Inc (HTV.N), said its fourth-quarter net income rose to $20.3 million, or 24 cents a share, compared with $13 million, or 15 cents a share, a year ago.
The results do not include non-cash impairment charges, which are estimated at about $300 million.
Net broadcast revenue from continuing operations fell slightly to $164.4 million in the quarter. Total revenue fell about a percent to $196 million. Continued...
