Political advertising that could reach record levels is expected to boost revenue this year for Baltimore-based Sinclair Broadcast Group Inc., the company said yesterday.

Sinclair, which owns and operates television stations in 35 markets, said net broadcast revenue from continuing operations will likely grow to between $160.2 million and $162.5 million in the first three months of 2008, compared with net revenue of $148.3 million in the first quarter of 2007.

The projected increase for the broadcaster, which owns affiliates of FOX, MyTV, ABC, CW, CBS and NBC, assumes a jump in political advertising as well as an estimated $5 million in revenue from advertising during the Super Bowl. The football game aired Sunday on Fox and was the most-watched Super Bowl ever with 97.5 million viewers.

Amid hotly contested presidential bids, the company said it expects political advertising revenue of $2.2 million for the first quarter, compared with $600,000 in the first three months of last year.

The company is not providing estimates of political spending for the full year, David Amy, Sinclair's chief financial officer, told analysts during a conference call yesterday.

"We are eagerly looking forward to the revenue benefits that come with what may be record advertising spending levels in a presidential election year," said David Smith, Sinclair's president and chief executive.

The company released its outlook along with earnings for the fourth quarter and year ending Dec. 31. Net broadcast revenue dipped 2.1 percent in the quarter to $165.7 million, from $169.2 million in the last three months of 2006 while operating income rose 23.2 percent to $47 million, from $38.2 million a year earlier.

The company reported net income available to common shareholders of $13 million, or 15 cents a share, compared with $13.4 million, or 16 cents a share, in the corresponding period a year earlier.

For the year, net broadcast revenue from continuing operations were down 0.7 percent to $622.6 million, from $627.1 million in 2006, the company said. Operating income rose 0.3 percent to $159.2 million, from $158.7 million.

The company also said its board of directors increased the annual common stock dividend by 10 cents, to 80 cents per share.

Shares of Sinclair closed yesterday up 47 cents, or 5.32 percent, to $9.31.

lorraine.mirabella@baltsun.com