In This Article:
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Total Media Revenue: In line with expectations.
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Distribution Revenues: Increased by $15 million year-over-year, but $2 million below guidance.
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Adjusted EBITDA: Exceeded the high end of guidance range by approximately $9 million for local media.
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Core Advertising Revenue: Down 4.5% year-over-year.
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Net Retransmission Revenues: Grew by mid-single digits year-over-year.
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Venture's Cash Balance: $354 million at quarter end.
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First Lien Net Leverage: 1.8x as of March 31.
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Total Net Leverage: 5.8x as defined in the new STG credit agreement.
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Debt Repurchase: Approximately $66 million in face value of STG's 2027 notes repurchased for $62 million in early April.
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Tennis Channel Revenue Growth: Total revenues grew by 9% year-over-year.
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Cash Tax Payments: Forecasted to be $121 million for the year, $95 million lower than previous guidance.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sinclair Inc (NASDAQ:SBGI) reported strong core advertising performance, believed to be among the best in the broadcast industry for the first quarter.
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Distribution revenues increased by $15 million year-over-year, despite subscriber churn moderating slightly.
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The Ventures portfolio received $10 million in cash distributions and invested $38 million, including a significant acquisition by Compulse.
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Sinclair Inc (NASDAQ:SBGI) successfully completed a comprehensive refinancing of STG, extending the debt maturity profile to over 6 years.
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The company announced a new business unit partnership with ATP, WTA, and U.S. tournaments, securing Verizon as the first sponsor with exclusivity in the 5G wireless space.
Negative Points
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Distribution revenues came in $2 million below guidance due to slower-than-expected improvements in subscriber churn.
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Core advertising revenues were down 4.5% year-over-year, reflecting macroeconomic and tariff-related uncertainties.
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The company anticipates lower media revenues in the second quarter due to significantly lower political revenues and continued softness in core advertising categories.
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Visibility on core advertising revenue is reduced, with several key advertisers pulling their financial guidance due to economic uncertainties.
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Despite refinancing, Sinclair Inc (NASDAQ:SBGI) faces challenges with a total net leverage of 5.8x, indicating a high level of debt.
Q & A Highlights
Q: Can the FCC cap retransmission rates, and how would that impact Sinclair? A: Christopher Ripley, President and CEO, explained that the FCC has the authority to regulate the relationship between networks and affiliates, which could help level the playing field with big tech and media. This deregulatory support is seen as overdue and could lead to significant opportunities for Sinclair.