Sinclair 2Q Revenue Drops 8%

Sinclair Broadcast Group on Wednesday afternoon reported that its second quarter total revenue decreased 8% to $768 million versus $837 million in the prior year period.

Media revenues also decreased 8% to $761 million versus $831 million a year ago.

Total advertising revenues of $309 million decreased 16% versus $366 million in the prior year period.

Core advertising revenues, which exclude political revenues, were down 3% in the second quarter to $303 million versus $312 million in the prior year period.

Distribution revenues of $418 million decreased versus $430 million in the prior year period.

The company reported an operating loss of $3 million, including non-recurring transaction and transition services, implementation, COVID, legal, and regulatory costs of $24 million, declined versus an operating income of $107 million in the prior year period, which included adjustments of $13 million. Operating income, when excluding the adjustments, was $21 million compared to an operating income, excluding the Adjustments, of $120 million in the prior year period.

Net loss attributable to the company was $89 million versus net loss of $11 million in the prior year period. Excluding adjustments, the company had net loss of $70 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 is continuing to see a solid start to 2023, meeting or beating guidance on all key financial metrics. As we continue our evolution from a traditional broadcast company to a diversified content and data distributor, we have finalized the process of reorganizing our company structure to increase transactional flexibility and transparency around the value of assets being held in each business unit, Sinclair Broadcast Group and its subsidiaries and Sinclair Ventures and its subsidiaries. SBG holds the pure-play local media assets, while Ventures holds the company’s non-local media assets. Our end goal is to create an even more effective company, designed to use the breadth of our assets to identify and accelerate growth.”

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 Sept. 15 to the holders of record at the close of business on Sept. 1.