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Sinclair is exploring mergers for its broadcast business
CNBC· 2025-08-11 20:51
Signage is displayed outside the Sinclair Broadcast Group Inc. headquarters in Cockeysville, Maryland, U.S.Sinclair, one of the largest broadcast station owners in the U.S., is launching a strategic review of its broadcast business that could result in a merger, CNBC has learned.The company and its advisors have already held deep discussions with potential merger partners, according to people close to the matter who could not speak publicly due to the sensitive nature of the talks.At the same time, Sinclair ...
Sinclair Broadcast Group(SBGI) - 2025 Q2 - Quarterly Report
2025-08-08 18:06
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . COMMISSION FILE NUMBER: 333-271072 (Sinclair, Inc.) 000-26076 (Sinclair Broadcast Group, LLC) Sinclair, Inc. Sinclair Broadcast Group, L ...
Sinclair Broadcast Group(SBGI) - 2025 Q2 - Earnings Call Transcript
2025-08-06 21:30
Financial Data and Key Metrics Changes - Total advertising revenue was within guidance range, with core advertising revenue up year over year on an as-reported basis [11] - Distribution revenues were below expectations, but still up year over year in the first half of the year and flat in the second quarter [11][30] - Adjusted EBITDA was comfortably above the midpoint of guidance range, driven by better-than-expected media expenses [11][31] - Consolidated media revenue was $777 million, slightly below guidance, reflecting expected industry dynamics in a non-political year [30] - Consolidated adjusted EBITDA was $103 million, exceeding the midpoint of guidance, but down $55 million year over year [31] Business Line Data and Key Metrics Changes - Local Media segment delivered adjusted EBITDA of $99 million, with distribution revenue of $380 million, down 1% year over year [28] - Tennis Channel generated adjusted EBITDA of $13 million, with total revenue of $68 million, up 1% year over year but below guidance [28] - Digital Remedy, now part of Sinclair, recorded $38 million in revenue and $7 million in adjusted EBITDA in the second quarter [30] Market Data and Key Metrics Changes - Multicast networks experienced record growth, with significant year-over-year coverage growth among Nielsen-rated broadcast networks [18] - Core advertising revenue was down 4.7% year over year, impacted by macroeconomic and tariff-related pressures [29] Company Strategy and Development Direction - The company is focusing on transforming its ventures portfolio towards majority-owned assets for greater operational control [11][14] - Sinclair is actively pursuing M&A opportunities following recent deregulation rulings, which are expected to enhance growth and synergies [20][21] - The company aims to leverage its strong balance sheet and financial flexibility to capitalize on M&A activity in the sector [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but noted signs of improvement in certain advertising categories [19] - The regulatory environment is viewed positively, with recent rulings expected to provide growth opportunities [21][24] - Management expressed confidence in the company's ability to navigate challenges and capitalize on upcoming opportunities, particularly with the return of sports programming [54] Other Important Information - The company appointed a new CFO, Narinder Sahai, who brings extensive financial leadership experience [5][7] - The acquisition of Digital Remedy for approximately $30 million is expected to enhance Sinclair's capabilities in omni-channel media activation [12][30] Q&A Session Summary Question: Regulatory commentary and potential M&A activity - Management indicated a strong position for potential M&A activity following recent deregulation rulings, which are expected to accelerate growth opportunities [20][50] Question: Subscriber trends with virtual distributors - Management noted that a significant virtual MVPD lost subscribers in the second quarter, but expects a rebound with the upcoming football season [43][44] Question: Contribution from announced deals and guidance on retransmission - Management expects tens of millions of dollars in additional EBITDA from upcoming JSA buy-ins and has adjusted retransmission growth guidance to low single digits [51] Question: Core advertising performance outlook - Management remains cautiously optimistic about core advertising performance, anticipating improved demand as sports seasons commence [53][54] Question: Guidance clarification and Ventures monetization process - Management clarified that the sale of four stations impacted Q2 and will affect Q3, and discussed the evaluation process for monetizing Ventures assets [58][62]
Sinclair Broadcast Group(SBGI) - 2025 Q2 - Earnings Call Presentation
2025-08-06 20:30
2Q25 Earnings Presentation August 6, 2025 Published by: Sinclair, Inc. 111 NON-GAAP FINANCIAL MEASURES This presentation contains certain financial measures of Sinclair, Inc. (the "Company"), including Adjusted EBITDA, which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP") (collectively, the "non-GAAP financial measures"). Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, and non-recurring and unusual transaction, implementa ...
Sinclair Broadcast Group(SBGI) - 2025 Q2 - Quarterly Results
2025-08-06 20:06
Press Release SINCLAIR REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS BALTIMORE (August 6, 2025) - Sinclair, Inc. (Nasdaq: SBGI), the "Company" or "Sinclair," today reported financial results for the three and six months ended June 30, 2025. Highlights: CEO Comment: "Sinclair delivered solid second quarter results, successfully navigating a challenging macro-economic environment, with Adjusted EBITDA exceeding the midpoint of our second quarter guidance. In addition, we are pleased to welcome our new Chief F ...
Unlocking Value: Sinclair's Path To FCF Growth, YouTube, And Deregulation
Seeking Alpha· 2025-06-16 12:23
Group 1 - Sinclair, Inc. (NASDAQ: SBGI) has reported a new agreement with YouTube, indicating positive expectations for upcoming reforms [1] - The company has made recent acquisitions in the last quarter and may announce new acquisitions soon [1] - The analysis focuses on cash flow statements and unlevered free cash flow figures, with assumptions based on previous financial data and forecasts for the business model [1] Group 2 - The financial models may include various financial metrics such as cost of capital, cost of debt, WACC, share count, and net debt [1] - The analysis typically does not cover growth stocks, instead focusing on companies with a long history of financial reporting [1] - Trading multiples studied include EV/FCF, net income, and EV/EBITDA [1]
Bally's (BALY) Earnings Call Presentation
2025-05-25 14:11
Acquisition and Partnership Highlights - Bally's will acquire 100% ownership of BetWorks for $125 million, with 50% in cash and 50% in equity[8] - Bally's and Sinclair are entering into a media partnership, integrating Bally's content into Sinclair's broadcast stations and sports networks[8] - Sinclair will receive warrants and options to own a minority stake in Bally's[8] Market Opportunity - Bally's is positioned to capture a significant share of the ~$50 billion U S sports betting and iGaming market opportunity[27] - The U S online sports betting and iGaming market is estimated to reach $2 6 billion in 2020[28] - The U S online sports betting and iGaming market generated $1 0 billion in 2019[28] Sinclair Broadcast Group Overview - Sinclair Broadcast Group has coverage of ~70% of total U S households[32] - Sinclair's RSNs broadcast over 4,600 professional sports games per year[35] - Sinclair owns, operates, and/or provides services to 190 television stations[39] Bally's Strategic Positioning - Bally's has a strategic footprint in states that have generated ~80% of the US sports betting revenues[13] - Bally's database size is ~14 million[14]
Gabelli Funds to Host 17th Annual Media & Entertainment Symposium Thursday, June 5, 2025
Globenewswire· 2025-05-12 12:00
Core Insights - Gabelli Funds will host its 17th Annual Media & Entertainment Symposium on June 5, 2025, at the Harvard Club in New York City, focusing on industry dynamics, current trends, and business fundamentals [1] - The symposium will include discussions on Sports Investing, Media & Telecom Regulatory issues, and Advertising Panels, providing a platform for attendees to engage with leading companies in the media ecosystem [1][3] - A webcast option will be available for those unable to attend in person, ensuring broader access to the discussions and insights shared during the event [1] Presenting Companies - Notable companies participating in one-on-one meetings include Atlanta Braves Holdings, AMC Networks, Lionsgate Studios, Churchill Downs, Nexstar Media Group, Genius Sports, Reservoir Media, Gray Television, Rogers Communications, Live Nation Entertainment, Sinclair Inc., Sportradar Group, TEGNA Inc., TKO Group, and The E.W. Scripps Company [2] Panel Discussions - The symposium will feature several panel discussions, including "Sports Investing: Ways to Play," a TV Bureau of Advertising (TVB) Panel, and a Media & Telecom Regulatory Expert Session led by former FCC Commissioner Rob McDowell [3]
Sinclair Broadcast Group(SBGI) - 2025 Q1 - Quarterly Report
2025-05-09 18:22
[Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements based on current expectations and projections, subject to various risks and uncertainties, with no obligation for the company to update them, cautioning readers against undue reliance - The forward-looking statements are based on current expectations and are subject to risks, uncertainties, and assumptions[8](index=8&type=chunk) - The company does not commit to updating or revising any forward-looking statements, which are only valid as of the date they are made[15](index=15&type=chunk) [Risk Factors Summary](index=3&type=section&id=Risk%20Factors%20Summary) The company identifies several categories of risks that could materially affect future results, including industry-specific risks like MVPD subscriber churn and programming costs, regulatory risks from the FCC, company-specific risks such as debt service and monetizing NextGen TV, and general risks including economic conditions and cybersecurity threats - Industry risks include adverse impacts from economic conditions, MVPD subscriber churn due to OTT platforms, and the rising cost and availability of programming content[9](index=9&type=chunk) - Regulatory risks involve potential changes in FCC rules regarding ownership, retransmission consent, and the rollout of NextGen TV[12](index=12&type=chunk) - Company-specific risks include the ability to service debt, successfully renegotiate retransmission agreements, deploy and monetize NextGen TV, and manage risks associated with artificial intelligence[12](index=12&type=chunk) - General risks encompass changes in national economies, geopolitical conditions like the war in Ukraine, natural disasters, and cybersecurity incidents[16](index=16&type=chunk) [PART I. FINANCIAL INFORMATION](index=9&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=9&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements for Sinclair, Inc. and its subsidiary, Sinclair Broadcast Group, LLC (SBG), for the quarterly period ended March 31, 2025, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, along with detailed notes [Sinclair, Inc. Financial Statements (Unaudited)](index=9&type=section&id=ITEM%201A.%20FINANCIAL%20STATEMENTS%20OF%20SINCLAIR%2C%20INC.%20(UNAUDITED)) For the quarter ended March 31, 2025, Sinclair, Inc. reported total revenues of $776 million, a decrease from $798 million in the prior year period, and a net loss of $154 million, a significant shift from a net income of $25 million in Q1 2024, primarily driven by higher interest expenses and a loss from investments, with total assets decreasing slightly to $5.78 billion from $5.89 billion at year-end 2024 Sinclair, Inc. Consolidated Statement of Operations Highlights (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | $776 | $798 | | Media Revenues | $770 | $792 | | Operating Income | $14 | $42 | | Interest Expense | $(144) | $(76) | | **Net (Loss) Income** | $(154) | $25 | | Net (Loss) Income Attributable to Sinclair | $(156) | $23 | | **Diluted EPS** | $(2.30) | $0.35 | Sinclair, Inc. Consolidated Balance Sheet Highlights (in millions) | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $631 | $697 | | Total Current Assets | $1,504 | $1,485 | | **Total Assets** | $5,779 | $5,885 | | Total Current Liabilities | $724 | $605 | | **Total Liabilities** | $5,411 | $5,369 | | **Total Equity** | $368 | $516 | Sinclair, Inc. Consolidated Cash Flow Highlights (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $5 | $(4) | | Net cash (used in) from investing activities | $(42) | $54 | | Net cash used in financing activities | $(29) | $(57) | [Notes to Sinclair, Inc. Financial Statements](index=16&type=section&id=NOTES%20TO%20UNAUDITED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The notes detail the company's operations across its local media and tennis segments, including the acquisition of CPX Interactive for approximately $30 million, an agreement to sell four TV stations for $30 million, significant debt refinancing activities in Q1 2025 to extend maturities, the settlement of the Diamond Litigation for $495 million, and a declared quarterly dividend of $0.25 per share - Sinclair operates two reportable segments: local media (185 broadcast stations) and tennis (Tennis Channel and related properties)[41](index=41&type=chunk) Revenue by Segment (Q1 2025 vs Q1 2024, in millions) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | | :--- | :--- | :--- | | Local Media | $694 | $727 | | Tennis | $68 | $63 | | Other | $21 | $15 | | Eliminations | $(7) | $(7) | | **Total** | **$776** | **$798** | - In Q1 2025, the company acquired the remaining 75% of CPX Interactive for approximately **$30 million** and entered an agreement to sell four stations for about **$30 million**, recording an estimated loss of **$17 million** on the sale[65](index=65&type=chunk)[66](index=66&type=chunk) - Completed a series of financing transactions in Q1 2025, including issuing **$1.43 billion** in new notes to repay debt due in 2026 and extending other debt maturities[78](index=78&type=chunk)[80](index=80&type=chunk)[83](index=83&type=chunk) - A global settlement was approved for the Diamond Litigation, with Sinclair making a cash payment of **$495 million** to DSG, and Sinclair's equity interest in DSG was terminated upon DSG's emergence from bankruptcy on January 2, 2025[108](index=108&type=chunk) - The Board of Directors declared a quarterly dividend of **$0.25 per share** in May 2025[72](index=72&type=chunk) [Sinclair Broadcast Group, LLC Financial Statements (Unaudited)](index=34&type=section&id=ITEM%201B.%20FINANCIAL%20STATEMENTS%20OF%20SINCLAIR%20BROADCAST%20GROUP%2C%20LLC%20(UNAUDITED)) For the quarter ended March 31, 2025, Sinclair Broadcast Group, LLC (SBG), which comprises the local media segment, reported total media revenues of $694 million, down from $727 million in Q1 2024, and posted a net loss of $101 million, compared to a net income of $6 million in the prior-year period, largely due to increased interest expenses from debt refinancing, with total assets standing at $4.62 billion SBG, LLC Consolidated Statement of Operations Highlights (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Media Revenues** | $694 | $727 | | Operating Income | $12 | $41 | | Interest Expense | $(144) | $(76) | | **Net (Loss) Income** | $(101) | $6 | | Net (Loss) Income Attributable to SBG | $(102) | $5 | SBG, LLC Consolidated Balance Sheet Highlights (in millions) | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $277 | $291 | | **Total Assets** | $4,617 | $4,689 | | **Total Liabilities** | $5,346 | $5,315 | | **Total Deficit** | $(729) | $(626) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses key operational events, including a multi-year affiliation renewal with NBC and a distribution agreement with YouTube TV, noting a 5% decline in Local Media revenue due to a cyclical drop in political advertising, while Tennis segment revenue grew 8%, and expresses confidence in liquidity after completing a major debt refinancing to extend maturities and strengthen its balance sheet - Key corporate developments in Q1 2025 include renewing affiliation agreements with NBC, reaching a distribution agreement with YouTube TV, and launching new content like the BFFR podcast[271](index=271&type=chunk) - In February 2025, the company completed a significant debt recapitalization to strengthen the balance sheet and extend its debt maturity profile[274](index=274&type=chunk) Local Media Segment Revenue (Q1 2025 vs Q1 2024, in millions) | Revenue Type | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Distribution | $395 | $384 | 3% | | Core Advertising | $271 | $284 | (5)% | | Political Advertising | $6 | $24 | (75)% | | **Total Media Revenues** | **$694** | **$727** | **(5)%** | - The decrease in Local Media revenue was primarily driven by a cyclical **$18 million (75%)** decrease in political advertising revenue, as 2025 is an off-year election cycle[283](index=283&type=chunk) - Tennis segment revenue increased **8%** to **$68 million**, driven by higher distribution fees and advertising revenue from an expanded tournament calendar[292](index=292&type=chunk)[293](index=293&type=chunk)[294](index=294&type=chunk) - As of March 31, 2025, Sinclair had **$631 million** in cash and **$650 million** in available borrowing capacity, with management believing liquidity is sufficient for the next twelve months[317](index=317&type=chunk)[322](index=322&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company reports that there have been no material changes from the quantitative and qualitative disclosures about market risk previously detailed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the market risk disclosures from the company's 2024 Form 10-K[335](index=335&type=chunk) [Controls and Procedures](index=70&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Based on an evaluation as of March 31, 2025, the management of both Sinclair, Inc. and SBG, including their respective CEOs and CFOs, concluded that their disclosure controls and procedures were effective at a reasonable assurance level, with no material changes in internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that disclosure controls and procedures for both Sinclair, Inc. and SBG were effective as of March 31, 2025[338](index=338&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[339](index=339&type=chunk) [PART II. OTHER INFORMATION](index=71&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=71&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section directs readers to Note 4, "Commitments and Contingencies," within the consolidated financial statements for a detailed discussion of pending lawsuits and other legal matters - For information on legal proceedings, the report refers to Note 4 of the Consolidated Financial Statements[342](index=342&type=chunk)[343](index=343&type=chunk) [Risk Factors](index=71&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[344](index=344&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported[345](index=345&type=chunk) [Defaults Upon Senior Securities](index=71&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities during the period - None reported[346](index=346&type=chunk) [Mine Safety Disclosures](index=71&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - None reported[347](index=347&type=chunk) [Other Information](index=71&type=section&id=ITEM%205.%20OTHER%20INFORMATION) During the first quarter of 2025, no directors or officers of Sinclair or SBG adopted or terminated any Rule 10b5-1 trading plans for the purchase or sale of the company's securities - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[348](index=348&type=chunk) [Exhibits](index=72&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including the company's Annual Incentive Plan, certifications from the CEO and CFO as required by the Sarbanes-Oxley Act, and the iXBRL formatted financial statements - The report includes exhibits such as the Sinclair, Inc. Annual Incentive Plan, CEO and CFO certifications pursuant to Rule 13a-14(a) and Section 906 of Sarbanes-Oxley, and iXBRL data files[349](index=349&type=chunk)
Sinclair (SBGI) Reports Q1 Loss, Tops Revenue Estimates
ZACKS· 2025-05-07 22:10
Group 1 - Sinclair reported a quarterly loss of $2.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.78, and a significant decline from earnings of $0.43 per share a year ago, indicating an earnings surprise of -22.47% [1] - The company posted revenues of $776 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.99%, but down from $798 million in the same quarter last year [2] - Over the last four quarters, Sinclair has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with Sinclair shares down about 3.7% year-to-date compared to the S&P 500's decline of -4.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.36 on revenues of $790.7 million, and for the current fiscal year, it is -$2.24 on revenues of $3.19 billion [7] - The Zacks Industry Rank places Media Conglomerates in the top 31% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]