Sinclair Reports First Quarter 2022 Financial Results

News Release


BALTIMORE (May 4, 2022) – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the “Company” or “Sinclair,” today reported financial results for the three months ended March 31, 2022.

First Quarter Highlights:
  • Broadcast & Other advertising revenue increased 7% from the same period a year ago.
  • Effective March 1, 2022, recapitalized debt obligations of Diamond Sports Group (“DSG”), a subsidiary of the Company, including raising additional capital, solidifying its capital position. In connection with the recapitalization, DSG agreed to changes to the composition of its Board of Managers, resulting in deconsolidation of the local sports segment from the Company’s financial statements and accounting for DSG under the equity method of accounting. As a result, the Company recognized a $3.4 billion non-cash pre-tax gain on asset dispositions.
  • Monetized approximately $40 million of investments, generating an annualized return of 30% and a Multiple on Invested Capital (MOIC) of 1.8x.

CEO Comment:

“Sinclair progressed on a number of fronts during the quarter, making important strides in advancing key initiatives,” said Chris Ripley, Sinclair’s President & Chief Executive Officer. “Political advertising is off to a strong start, exceeding our expectations for the first quarter and helping drive our Broadcast and Other first quarter media revenue to the upper end of its guidance range. We believe this is a good indicator of how strong this year’s political cycle can be and gives us confidence that we can achieve a record amount of political advertising for a mid-term election year.”

Ripley continued, “The progress on our initiatives for future growth continues to advance. Our Compulse 360 omni-channel digital advertising ecosystem, offering the ability to run local campaigns at scale, is gaining traction and is expected to see significant growth this year and into the future, as we add incremental functionality and features. Also, we will be launching this year the first commercial datacasting service using the NextGen (ATSC 3.0) technology, an important business use case that will demonstrate the potential for broadcasters to grow beyond broadcast.”

Ripley concluded, “We remain committed to bringing value to our shareholders through a number of different avenues. Utilizing our strong free cash flow, we intend to continue to invest for the future, through actions to grow organically, whether it be content or technology, as well as through strategic and synergistic investments and acquisitions that will help drive profitability in the years ahead. Importantly, we will not hesitate to monetize our assets, when appropriate, and when most beneficial for our stakeholders.”

Read more…1Q22 Earnings PR_FINAL

Link to: Earnings Slide Deck 2Q22