Sinclair Broadcast Group(SBGI) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $773 million, a decrease of 16% year-over-year from $917 million in Q3 2024[11] - Adjusted EBITDA for Q3 2025 was $100 million, down 60% from $249 million in Q3 2024[11] - Core advertising revenue decreased by $20 million year-over-year, totaling $321 million in Q3 2025 compared to $433 million in Q3 2024[11] - Distribution revenue for Q3 2025 was $422 million, a decline of 3% from $434 million in Q3 2024[11] - For the three months ended September 30, 2025, total revenue was $782 million, a decrease of 7.5% compared to $845 million in the same period of 2024[42][43] - Adjusted EBITDA for the three months ended September 30, 2025, was $100 million, down 59.8% from $249 million in the same period of 2024[41] - The company reported a net loss of $215 million for the three months ended September 30, 2025, compared to a net income of $96 million in the same period of 2024[41] Future Projections - For the three months ending December 31, 2025, consolidated total revenue is projected to be between $815 million and $851 million, with media revenue contributing $809 million to $845 million[25] - Core advertising revenue for the same period is expected to range from $296 million to $312 million, while political advertising revenue is anticipated to be between $18 million and $21 million[25] - Adjusted EBITDA for the three months is forecasted to be between $132 million and $154 million, with operating income estimated at $54 million to $76 million[25] - For the twelve months ending December 31, 2025, total revenue is projected to be between $3,148 million and $3,184 million, with media revenue contributing $3,121 million to $3,157 million[27] - Core advertising revenue for the twelve months is expected to range from $1,108 million to $1,125 million, with political advertising revenue projected at $36 million to $39 million[27] - Adjusted EBITDA for the twelve months is forecasted to be between $447 million and $469 million, with operating income estimated at $147 million to $169 million[27] Debt and Cash Management - As of September 30, 2025, total company debt was $4,101 million, with cash and cash equivalents of $526 million[23] - The company redeemed $89 million of its 5.125% Senior Unsecured Notes due 2027 on October 6, 2025[10] - Interest expense for the nine months ended September 30, 2025, was $311 million, compared to $230 million in the same period of 2024[41] - The company incurred non-recurring and unusual transaction costs of $11 million for the nine months ended September 30, 2025[41] Operational Strategies - Sinclair closed on 11 partner station acquisitions and has 10 more pending FCC approval, expected to generate at least $30 million in incremental annualized EBITDA[4] - The company anticipates record mid-term political revenue in the upcoming cycle due to recent regulatory developments[4] - The company plans to shift to an annual guidance framework starting in the fourth quarter of 2025, reflecting a focus on sustainable and long-term value creation[31] - The company is focused on executing retransmission consent agreements and exploring potential acquisitions to enhance growth strategies[44] Segment Performance - The Local Media segment generated $667 million in revenue, while the Tennis segment contributed $67 million, and Other segments accounted for $48 million[42] - Segment operating income for Local Media was $27 million, with Tennis at $11 million and Other segments at $14 million[42] - Media programming and production expenses totaled $378 million, while media selling, general and administrative expenses were $165 million for the three months ended September 30, 2025[42] Market Challenges - The company anticipates challenges due to subscriber declines and increased competition for viewers and advertisers, impacting future operating results[44] - Core advertising revenue is anticipated to show flat to low-single-digit growth compared to 2025[34] - Distribution revenue is expected to be approximately flat to 2025, assuming stable subscriber churn levels[34] - The company expects record mid-term political advertising revenue, at least matching the 2022 mid-term year[34]