NASDAQ$SBGI

Sinclair Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Sinclair reported a decrease in total revenues and net loss compared to the prior year period, influenced by lower political advertising revenues and adjustments related to litigation settlement accrual related to the DSG litigation. The company met guidance on key financial metrics, with Tennis Channel exceeding expectations.

Sinclair reported a decrease in total revenues to $826 million and a net loss of $341 million for Q4 2023, impacted by lower political advertising revenues and a $495 million litigation settlement accrual related to the DSG litigation. Core advertising revenues, excluding political revenues, increased by 2%. The company repurchased approximately $27 million of debt in 2024 and estimated the fair market value of Ventures' minority investment portfolio at approximately $1.2 billion.

  • Total revenues decreased by 14% to $826 million compared to the prior year period.
  • Core advertising revenues increased by 2% in the fourth quarter.
  • Operating loss was $386 million, including $499 million in adjustments primarily related to a litigation settlement accrual.
  • The company repurchased over $91 million in debt principal during the year and through early January.

Headline financials

Total Revenue

$826M

Previous: $960M-14.0%
EPS (adj)

$0.81

Previous: $0.90-10.0%
Political Advertising

$24M

No prior period
Core Advertising

$339M

No prior period
Distribution Revenue

$422M

No prior period
Capital Expenditures

$22M

No prior period
Net Income

-$341M

Previous: $55M-720.0%
Operating Income

-$386M

Previous: $253M-252.6%
Gross Profit

$325M

Previous: $566M-42.6%
Stock-Based Comp

$3M

Previous: $4M-25.0%

Revenue & EPS history

Sinclair · Revenue · Quarterly

$826M

Q4 2023-14%vs Q4 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Sinclair · $773M total across 3 segments · Q3 2023

  • Local Media
    $697M
  • Tennis
    $59M
  • Other
    $17M

Forward guidance

The Company expects to achieve the following results for the three months ending March 31, 2024 and the twelve months ending December 31, 2024.

Tailwinds

  • Core advertising revenue is expected to be $300 to 308 million.
  • Political revenue is expected to be $22 to 25 million.
  • Advertising revenue is expected to be $322 to 333 million.
  • Distribution revenue is expected to be $431 to 433 million.
  • Adjusted Free Cash Flow is expected to be $100 to 114 million.

Headwinds

  • Media programming & production expenses and media selling, general and administrative expenses are expected to be $610 to 612 million.
  • Non-media expenses are expected to be $14 million.
  • Program contract payments are expected to be $22 million.
  • Corporate overhead is expected to be $47 million.
  • Non-recurring transaction, implementation, legal, regulatory and other costs are expected to be $8 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+0.4%

Avg return

Earnings day

+1.2%

Avg return

5 days after

-0.2%

Avg return

30 days after

48%

31 / 64 earnings

Positive

+31.1%

Q3 2023

Best reaction

-16.1%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%-3.1%-9.4%
Q4 2025+17.9%+10.3%-5.2%
Q3 2025+18.0%+21.1%+5.1%
Q1 2025-4.7%+1.6%-16.1%
Q4 2024-4.0%-6.2%+8.2%
Q3 2024+1.1%-2.3%+8.0%
Q2 2024+2.4%-4.1%+1.0%
Q1 2024+22.0%+12.8%-6.5%
Q4 2023+3.1%-4.4%-6.5%
Q3 2023+31.1%+32.8%+24.9%
Q2 2023-4.9%-1.3%-17.2%
Q1 2023-16.1%-12.5%-20.4%
Q4 2022-5.5%-12.0%-22.9%
Q3 2022-5.5%-4.6%-1.2%
Q2 2022+5.6%+5.7%+2.6%
Q1 2022+1.4%-2.7%-0.7%
Q4 2021-2.0%+11.6%+4.2%
Q3 2021-3.9%-5.0%-9.9%
Q2 2021+7.3%+6.4%+1.3%
Q1 2021+5.0%+6.1%+6.5%
Q4 2020-14.1%-10.0%-19.7%
Q3 2020-4.1%+4.4%+47.1%
Q2 2020-4.4%-1.9%-2.6%
Q1 2020+4.4%+7.1%+61.1%
Q4 2019-14.7%-14.3%-36.7%
Q3 2019-1.3%+2.3%-15.4%
Q2 2019-4.0%-7.3%-10.5%
Q1 2019+0.4%-4.8%-15.7%
Q4 2018+10.0%+12.0%+17.3%
Q3 2018+3.9%+2.3%+0.3%
Q2 2018+6.9%+7.3%+4.6%
Q1 2018+8.2%+10.8%+9.0%
Q4 2017-7.4%-5.5%-13.2%
Q3 2017-3.3%-4.4%+6.9%
Q2 2017-13.3%-14.4%-17.5%
Q1 2017-4.2%-5.8%-11.9%
Q4 2016+7.9%+8.3%+7.2%
Q3 2016+1.9%+4.7%+30.0%
Q2 2016+6.7%+6.3%+6.9%
Q1 2016-1.4%
Q4 2015+0.5%
Q3 2015+4.5%
Q2 2015-6.1%
Q1 2015-2.7%
Q4 2014+5.9%
Q3 2014+1.8%
Q2 2014+0.4%
Q1 2014-2.3%
Q4 2013+1.7%
Q3 2013-0.2%
Q2 2013-4.3%
Q1 2013-0.3%
Q4 2012-1.9%
Q3 2012+1.1%
Q2 2012-4.7%
Q1 2012-2.0%
Q4 2011+2.1%
Q3 2011-0.4%
Q2 2011-13.9%
Q1 2011-3.0%
Q4 2010-2.9%
Q3 2010+0.2%
Q2 2010+13.4%
Q1 2010-7.7%

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