Television broadcasting company Sinclair Broadcast Group Inc. said Wednesday its third-quarter profit increased 47 percent, helped by lower taxes and expenses.

But revenue dropped as advertisers spent less at both the local and national levels.

Sinclair owns, operates or provides services to 58 television stations in 35 markets, reaching more than a fifth of U.S. television households.

"We have started to see signs that perhaps the worst of the recession is over," said Sinclair's chief financial officer, David Amy, in a statement. "Advertisers are beginning to buy with longer lead times and declines in the core business are getting smaller."

Its shares fell 23 cents, or 5.7 percent, to $3.81 in afternoon trading.

Its earnings rose to $14.9 million, or 19 cents per share, in the three months ended Sept. 30 from $10.2 million, or 12 cents per share, a year ago.

Revenue fell 10 percent to $160.1 million from $178.2 million in the year-ago quarter. Local advertising revenue excluding political ad spending, which makes up the bulk of Sinclair's revenue, fell 13 percent. Sinclair said political revenue dropped 78 percent. National advertising revenue declined 16 percent.

But Sinclair was able to turn a bigger profit because it cut operating expenses by 12 percent, and set aside 60 percent less for taxes. The company also paid less in interest expense and other finance charges.

For the fourth quarter, Sinclair said it expects net broadcast revenue to fall 11 to 13 percent from a year ago, totaling $143.3 million to $146.3 million. For the full year, the company forecast net broadcast revenue to drop 14 to 15 percent, to $544.1 million to $547.1 million.