Sinclair (SBGI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose 20% year-over-year to $917 million, with core advertising up 1% and record political advertising revenue of $138 million, despite late cancellations impacting guidance.

• Adjusted EBITDA increased 72% year-over-year to $249 million, near the high end of guidance, and net income was $94 million versus a $46 million loss a year ago.

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

• The company settled the Diamond Sports Group litigation for $495 million and renewed major distribution agreements with Altice USA and DIRECTV.

• Expanded podcast division, launched new sports content, and deployed NextGen TV in additional markets.

Financial highlights

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

• Q3 total advertising revenues were $433 million (+42% YoY); core advertising $295 million (+1% YoY); political $138 million.

• Q3 operating income was $179 million (up from $37 million YoY); net income $94 million (vs. $46 million loss YoY); diluted EPS $1.43 (vs. -$0.74 YoY).

• Cash and cash equivalents stood at $536 million as of September 30, 2024; total debt was $4.13 billion.

• Nine-month revenue reached $2.54 billion, up from $2.31 billion year-over-year; nine-month net income was $134 million, up from $50 million.

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 guidance: $860–$871 million, up 53–56% over 2023; core advertising down 2%, distribution revenue up 4%.

• Political revenue for Q4 projected at $204 million; full-year political revenue expected at $406 million, up 16% over 2020.

• Capital expenditure guidance for the year lowered by $17–$24 million from February.