Sinclair (SBGI) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong results with total revenues rising 20% year-over-year to $917 million, driven by record political advertising and 1% core ad growth, despite late political ad cancellations in key states.

• Distribution revenues grew 5% year-over-year, supported by new carriage agreements covering 78% of Big Four MVPD subscribers.

• Ventures portfolio received $5 million in distributions, ended Q3 with $334 million in cash, and made $7 million in new investments.

• Major distribution agreements were renewed with Altice USA and DIRECTV, and new sports content initiatives were launched, including Rip City Television Network.

• Sinclair settled the Diamond Sports Group litigation for $495 million and expanded its podcast and digital content offerings.

Financial highlights

• Q3 total revenues were $917 million (+20% YoY); media revenues reached $908 million (+20% YoY).

• Adjusted EBITDA for Q3 was $249 million, up 72% year-over-year and in line with guidance.

• Net income for Q3 was $94 million, compared to a $46 million loss a year ago; diluted EPS was $1.43.

• Political advertising revenue reached a record $138 million in Q3, up 31% over 2020 levels.

• Distribution revenue rose 5% to $383 million; cash and equivalents stood at $536 million at quarter end.

Outlook and guidance

• Q4 2024 total revenues expected between $992 million and $1.014 billion; adjusted EBITDA guidance is $314–$325 million, up 74–81% year-over-year.

• Full-year 2024 adjusted EBITDA projected at $860–$871 million, up 53–56% year-over-year.

• Political advertising revenue for 2024 forecast at $406 million, up 16% over 2020 pre-runoff levels.

• Core advertising revenue for 2024 forecast at $1,159–$1,166 million; distribution revenue expected to rise 4% for the full year.

• Capital expenditure guidance lowered by up to $24 million from earlier forecasts.