Sinclair Q3 Revenue Down 9%

Sinclair Broadcast Group on Wednesday afternoon reported that its third quarter total revenue decreased 9% to $767 million versus $843 million in the prior year period.

Media revenues also decreased 9% to $758 million versus $836 million a year ago.

Total advertising revenues of $304 million decreased 19% versus $374 million in the prior year period.

Core advertising revenues, which exclude political revenues, were up 2% in the quarter to $293 million versus $286 million in the prior year period.

Distribution revenues of $414 million decreased versus $425 million in the prior year period.

Operating income was $37 million, down from $154 million in the prior year period, due to non-recurring transaction and transition services, implementation, COVID, legal, litigation and regulatory costs of $25 million. Operating income, when excluding the adjustments, was $72 million compared to an operating income, excluding the adjustments, of $158 million in the prior year period.

Net loss attributable to the company was $46 million versus net income of $21 million in the prior year period. Excluding adjustments, the company had net loss of $19 million.

The above results that reflect the “deconsolidation” of the Local Sports segment comprised of the regional sports networks (RSNs), which are owned and operated by Diamond Sports Group and its direct and indirect subsidiaries, from the company’s financial statements and accounted for under equity method of accounting, effective March 1, 2022. As such, the quarter-to-date and year-to-date 2023 consolidated financial results do not include any results of operations of the Local Sports segment, while the consolidated financial results for the comparable year-to-date 2022 period include two months results of operations of the Local Sports segment.

Chris Ripley, president-CEO, said: “Sinclair reported a strong third quarter with revenues exceeding the high-end of our guidance ranges and Adjusted EBITDA exceeding the mid-point of our guidance for the quarter by 40%. In addition, we have repurchased $64 million in face value of our debt through open-market repurchases since the beginning of June at a 24% average discount to par. Our priority remains to strengthen our balance sheet while acting opportunistically when market conditions permit.

“Year-to-date, political advertising is at record levels for a non-election year, and we expect that trend to continue in the fourth quarter as well as the 2024 presidential election year. And while we continue to deal with elevated linear subscriber churn levels, Sinclair is well-positioned for the near- and long-term with nearly all of our Big 4 network traditional subscribers up for renewals by the end of 2024.”

Read the company’s report here.

Also Wednesday, Sinclair declared a quarterly cash dividend of $0.25 per share on the company’s Class A and Class B common stock. The dividend is payable on Dec. 15 to the holders of record at the close of business on Dec. 1.