On August 7, 2024, Sinclair Inc (SBGI, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Sinclair Inc, the owner-operator of the second largest portfolio of television stations in the United States, reported significant financial achievements and challenges for the quarter.
Company Overview
Sinclair Inc. is a diversified media company that owns and operates 185 full power television stations in 86 markets across the United States. The company’s portfolio includes approximately 600 channels, with affiliations to major national broadcasters such as Fox, ABC, CBS, and NBC. Sinclair also owns the Tennis Channel and holds stakes in Marquee Sports Network and YES Network, providing content to pay-TV distributors.
Q2 2024 Financial Performance
Sinclair Inc (SBGI, Financial) reported total revenues of $829 million for Q2 2024, an 8% increase from $768 million in the same period last year. This performance met the company's revenue guidance, driven by growth in both advertising and distribution revenues.
Adjusted EBITDA for the quarter was $158 million, a 42% increase from $111 million in Q2 2023, exceeding the company's guidance. The company also reported a net income of $17 million, compared to a net loss of $89 million in the prior year period. Diluted earnings per share were $0.27, a significant improvement from a diluted loss per share of $1.38 in Q2 2023.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $829 million | $768 million |
| Adjusted EBITDA | $158 million | $111 million |
| Net Income | $17 million | $(89) million |
| Diluted EPS | $0.27 | $(1.38) |
Segment Performance
Sinclair's Local Media segment, which includes broadcast television stations, reported media revenues of $750 million, up from $699 million in Q2 2023. The Tennis segment, which includes the Tennis Channel, reported media revenues of $67 million, up from $60 million in the prior year period.
CEO Commentary
"Sinclair delivered solid second-quarter results, meeting our guidance expectations across major financial metrics, including a $105 million monetization of an investment in our Ventures portfolio," commented Chris Ripley, Sinclair's President and Chief Executive Officer. "Total advertising revenue was up 11% year-over-year and distribution revenues grew by 4%. With almost 60% of our Big 4 subscribers still to be renewed this year, we are confident in our ability to grow net retrans in line with our 2-year CAGR estimates."
Challenges and Outlook
Despite the positive results, Sinclair faces challenges such as the decline in subscribers to traditional and virtual multi-channel video programming distributors. However, the company remains optimistic about its growth prospects, particularly in political advertising, which is expected to reach record levels in the second half of the year.
For more detailed financial information, please refer to Sinclair Inc's 8-K filing.
Explore the complete 8-K earnings release (here) from Sinclair Inc for further details.
