Sinclair (SBGI) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Strategic priorities and business transformation

• Focus on core execution led to Q1 growth in advertising and EBITDA, with ongoing deleveraging through debt retirement and a strong emphasis on M&A and AI-driven transformation.

• AI is being integrated to automate processes, enhance content repurposing, and drive operational efficiency, while maintaining the importance of local journalism.

• Ventures segment, including Tennis Channel and Digital Remedy, is positioned for significant growth, with plans to double Digital Remedy and expand Tennis Channel’s streaming subscribers.

• Monetization of minority investments and redeployment into new growth areas are ongoing, with a focus on low-risk, scalable opportunities.

Advertising and market outlook

• Q1 core advertising rose 4% year-over-year, with full-year guidance reaffirmed despite macro and geopolitical uncertainties.

• Advertiser sentiment is measured but not alarming; softness is limited to specific consumer discretionary categories.

• Upfronts indicate constructive buyer sentiment, with plans for increased ad spending for the third consecutive year.

• World Cup coverage on Fox affiliates is expected to provide incremental, though not material, revenue upside, especially if the U.S. team advances.

Political advertising and crowd-out

• Political ad spending is tracking ahead of previous cycles, with strong fundraising and early spending ramping up.

• Well-positioned in swing states, reaching a balanced and engaged voter demographic.

• Active yield management helps mitigate, but not eliminate, crowd-out during peak political ad periods.