Sinclair (SBGI) Q4 2024 earnings summary

Executive summary

• Achieved record-breaking political advertising revenues of $405 million in 2024, up 16% over 2020 pre-runoff levels and doubling 2016 levels.

• Adjusted EBITDA for Q4 2024 was $330 million, up 83% year-over-year and exceeding guidance.

• Distribution revenue grew over 5% year-over-year, driven by successful contract renewals and favorable subscriber trends.

• Completed comprehensive refinancing in early 2025, extending debt maturities and improving balance sheet flexibility.

• Launched new digital initiatives, including sports podcasts, a direct-to-consumer Tennis Channel product, and the EdgeBeam Wireless joint venture for ATSC 3.0 data delivery.

Financial highlights

• Q4 2024 consolidated media revenue increased 21% year-over-year to $992 million, led by political and distribution revenue growth.

• Adjusted EBITDA for FY24 was $876 million, up 57% year-over-year and above guidance.

• Core advertising declined 9% year-over-year in Q4, mainly due to political crowd-out and macroeconomic softness.

• Tennis Channel revenues rose 6% year-over-year in Q4, with digital ad revenue more than doubling.

• Full-year CapEx was $84 million, well below the original midpoint guidance of $114 million.

Outlook and guidance

• Q1 2025 media revenues expected to decline 2–4% year-over-year, mainly due to lower political revenues.

• Core advertising revenue projected to be down 3% at the midpoint, while distribution revenue is expected to rise 4% year-over-year.

• Adjusted EBITDA guidance for Q1 2025 is $90–$102 million, down from $139 million in Q1 2024.

• Full-year 2025 expense guidance includes a modest 2% increase in media programming, production, and SG&A.

• Forecasting $216 million in cash tax payments for 2025, largely due to Diamond's Chapter 11 emergence.