Sinclair Inc (SBGI) Reports Q3 2023 Financial Results
Sinclair Inc (NASDAQ:SBGI) reported Q3 2023 financial results on November 1, 2023.
The company repurchased approximately $64 million of principal value of debt since early June.
Total revenues decreased 9% to $767 million versus $843 million in the prior year period.
Net loss attributable to the Company was $46 million versus net income of $21 million in the prior year period.
On November 1, 2023, Sinclair Inc (NASDAQ:SBGI) released its financial results for the third quarter of 2023. The company reported that it met or exceeded guidance on all key financial metrics and repurchased approximately $64 million of principal value of debt since early June.
Financial Performance
For the third quarter, total revenues decreased 9% to $767 million compared to $843 million in the prior year period. Media revenues also decreased 9% to $758 million versus $836 million in the prior year period. Total advertising revenues of $304 million decreased 19% versus $374 million in the prior year period. Core advertising revenues, which exclude political revenues, were up 2% in the third quarter to $293 million versus $286 million in the prior year period.
CEO Commentary
Sinclair reported a strong third quarter with revenues exceeding the high-end of our guidance ranges and Adjusted EBITDA exceeding the mid-point of our guidance for the quarter by 40%, said Chris Ripley, Sinclairs President and Chief Executive Officer. In addition, we have repurchased $64 million in face value of our debt through open-market repurchases since the beginning of June at a 24% average discount to par. Our priority remains to strengthen our balance sheet while acting opportunistically when market conditions permit. Year-to-date, political advertising is at record levels for a non-election year, and we expect that trend to continue in the fourth quarter as well as the 2024 Presidential election year. And while we continue to deal with elevated linear subscriber churn levels, Sinclair is well-positioned for the near- and long-term with nearly all of our Big 4 network traditional subscribers up for renewals by the end of 2024.
Financial Tables
The company's operating income of $37 million, including non-recurring transaction and transition services, implementation, COVID, legal, litigation and regulatory costs ("Adjustments") of $25 million and an adjustment for the loss on deconsolidation of $10 million ("Deconsolidation Loss"), declined versus an operating income of $154 million in the prior year period, which included Adjustments of $4 million. Operating income, when excluding the Adjustments and the Deconsolidation Loss, was $72 million compared to an operating income, excluding the Adjustments, of $158 million in the prior year period.
Company Developments
During the third quarter, Sinclair Inc (NASDAQ:SBGI) reached several agreements to expand and extend its network affiliation and distribution agreements with The CW, DIRECTV, LLC, Comcast, and Paramount. The company also launched The Nest, a new, free over-the-air national broadcast TV network with programming comprised of home-improvement, true-crime, factual reality series, and celebrity driven family shows.
Outlook
For the three months ending December 31, 2023, the company expects to achieve core advertising revenue of $336 to $354 million, political revenue of $25 to $30 million, and total revenues of $760 to $784 million for Local Media, $51 to $52 million for Tennis, and $17 million for Other.
Explore the complete 8-K earnings release (here) from Sinclair Inc for further details.
This article first appeared on GuruFocus.
