Sinclair (SBGI) Q1 2025 earnings summary

Executive summary

• Adjusted EBITDA exceeded the high end of guidance despite macroeconomic uncertainty and cost controls, even as total revenues declined 3% year-over-year to $776M and net loss reached $156M, impacted by $68M in one-time refinancing costs.

• Core advertising and media revenues were in line with expectations, though core advertising declined 4.5% year-over-year and distribution revenues were slightly below guidance due to slower subscriber churn improvement.

• Ventures portfolio shifted toward majority-owned assets, with $10M in cash distributions, $38M invested (including $30M for Compulse acquisition), and $354M cash at quarter-end.

• Announced Jeff Blackburn as Chairman and CEO of Tennis Channel, aiming to expand digital and streaming presence, and reached new distribution agreements with NBC and YouTube TV.

• Regulatory optimism for deregulatory FCC actions and potential M&A activity, with comprehensive refinancing extending debt maturities and improving liquidity.

Financial highlights

• Q1 2025 total revenues were $776M, down from $798M year-over-year; adjusted EBITDA was $112M, above guidance.

• Core advertising revenue declined 4.5% year-over-year but was within guidance; distribution revenues increased 3% in local media and 8% in tennis.

• Operating income fell to $14M from $42M year-over-year; net loss attributable to Sinclair was $156M, compared to net income of $23M a year ago.

• Cash and equivalents at quarter-end were $631M, with $1.3B in liquidity; capital expenditures were $16M.

• Declared quarterly dividends of $0.25 per share in both February and May 2025.

Outlook and guidance

• Q2 2025 total revenues expected between $778M and $798M; adjusted EBITDA guidance: $91M–$107M.

• Local media core advertising revenue expected to decline ~2% at midpoint; distribution revenues to rise 1% year-over-year.

• Full-year 2025 interest expense projected at $357M, including $68M in non-recurring refinancing costs; cash tax payments forecast at $121M, $95M lower than prior guidance.

• Management expects existing cash, cash flow, and borrowing capacity to be sufficient for debt service, capex, and working capital needs for the next twelve months.

• Full-year guidance reflects reduced visibility due to macroeconomic and tariff-related uncertainty; media expense line item removed.