Sinclair (SBGI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached $829 million, up 8% year-over-year, with Adjusted EBITDA of $158 million, exceeding guidance, driven by strong political and distribution revenues and effective cost controls.

• Net income was $17 million for Q2 2024, compared to a net loss of $89 million in Q2 2023.

• Ventures portfolio generated $109 million in distributions, including a $105 million exit with a 40% IRR, and $26 million in new minority investments.

• Local media assets include 183 stations in 86 markets, with over 50% of news operations ranked #1 or #2.

• Broadcast TV and local news remain key drivers, with live sports and political advertising boosting results in an election year.

Financial highlights

• Q2 2024 total revenues were $829 million, up from $768 million in Q2 2023; media revenues were $819 million, up 7–8% year-over-year.

• Adjusted EBITDA was $158 million, up 39–42% year-over-year and above guidance.

• Total advertising revenue grew 11% year-over-year to $343 million, with political advertising at $40 million, a Q2 record.

• Distribution revenue rose 4% year-over-year to $435 million, supported by rate increases and new agreements.

• CapEx was $23 million, below guidance, due to under-budget facility build-out.

Outlook and guidance

• Q3 2024 total revenues expected between $898 million and $929 million, with Adjusted EBITDA guidance of $229 million to $254 million, up 58–75% year-over-year.

• Full-year 2024 political ad revenue guidance raised to $385 million–$410 million, 10–17% above 2020 (ex-Georgia runoff).

• Full-year media programming, production, and SG&A expense guidance lowered by $3–$10 million; CapEx guidance reduced to $93 million–$98 million.

• Management expects liquidity to be sufficient for debt service, capex, and working capital over the next 12 months.