Sinclair Broadcast Group(US:SBGI)2025-11-07 16:22Revenue Performance - Total revenue for the three months ended September 30, 2025, was $773 million, a decrease of 16% compared to $917 million in the same period of 2024[290]. - Media revenue decreased by 21% to $667 million for the three months ended September 30, 2025, down from $845 million in 2024[292]. - Political advertising revenue plummeted by 96% to $6 million for the three months ended September 30, 2025, compared to $138 million in 2024, due to the off-year election cycle[296]. - Core advertising revenue decreased by $14 million, or 5%, for the three months ended September 30, 2025, compared to the same period in 2024[295]. - Distribution revenue fell by $13 million, or 3%, for the three months ended September 30, 2025, impacted by mid-teen percentage subscriber decreases[294]. - Total media revenue for Q3 2025 was $667 million, a decrease of 21% from $845 million in Q3 2024[329]. Operating Income and Loss - Operating income for the three months ended September 30, 2025, was $58 million, a significant decline from $179 million in 2024[290]. - Operating income for Q3 2025 was $49 million, down 73% from $182 million in Q3 2024[329]. - Net loss attributable to Sinclair for the three months ended September 30, 2025, was $1 million, compared to net income of $94 million in 2024[290]. - Net loss attributable to SBG for Q3 2025 was $30 million, compared to a net income of $80 million in Q3 2024[329]. Expenses - Sinclair's media programming and production expenses decreased by $6 million for the three months ended September 30, 2025, primarily due to reductions in litigation and consulting expenses[300]. - Media selling, general and administrative expenses decreased by $23 million (approximately 10%) for the three months ended September 30, 2025, compared to the same period in 2024[301]. - Media programming and production expenses increased by $5 million (17%) for the three months ended September 30, 2025, primarily due to higher tournament production costs[311]. - Corporate general and administrative expenses decreased by $12 million (8%) for the nine months ended September 30, 2025, compared to the same period in 2024[321]. - Corporate general and administrative expenses decreased by 13% to $21 million in Q3 2025 from $24 million in Q3 2024[333]. Cash Flows - Net cash flows used in operating activities for Q3 2025 were $(36) million, compared to $210 million in Q3 2024[345]. - Net cash flows used in operating activities for Sinclair decreased to $(22) million in Q3 2025 from $226 million in Q3 2024[351]. - For the nine months ended September 30, 2025, net cash flows from operating activities increased to $91 million compared to $(86) million in the same period of 2024[351]. - Net cash flows used in investing activities increased to $(21) million in Q3 2025 compared to $(2) million in Q3 2024, primarily due to a decrease in distributions and proceeds from investments[353]. - Net cash flows used in investing activities for the nine months ended September 30, 2025, increased to $(55) million from $(20) million in the same period of 2024[351]. - Sinclair's financing activities saw an increase in net cash flows used to $(205) million for the nine months ended September 30, 2025, compared to $(11) million in the same period of 2024[351]. Debt and Interest - Interest expense increased by $7 million (approximately 11%) for the three months ended September 30, 2025, primarily due to recent transactions[304]. - Gain on extinguishment of debt recognized for the nine months ended September 30, 2025, amounted to $4 million from repurchasing $81 million of Senior Notes[305]. - The repurchase of the 5.125% Senior Notes due 2027 contributed to increased financing activities outflows in the nine months ended September 30, 2025[354]. Tax Rate - Effective tax rate for the three months ended September 30, 2025, was a benefit of 188.6%, compared to a provision of 23.0% in the same period of 2024[323]. - The effective tax rate for Q3 2025 was a benefit of 18.2%, compared to a provision of 22.8% in Q3 2024[335]. Dividends and Awards - Sinclair declared a quarterly dividend of $0.25 per share in August 2025[291]. - Sinclair declared a quarterly dividend of $0.25 per share in both August and November 2025, subject to the Board's discretion[350]. - Sinclair's newsrooms won a total of 227 journalism awards in 2025, including 25 RTDNA regional Edward R. Murrow Awards[285]. Contracts and Agreements - Sinclair entered into agreements increasing estimated contractual amounts owed for tennis programming rights by $165 million, extending into 2032[343]. - During the nine months ended September 30, 2025, SBG repurchased $81 million of 5.125% Senior Notes due 2027 for $77 million[342].