Sinclair Reports Fourth Quarter 2021 Financial Results And Increases Quarterly Dividend 25%

News Release

 

SINCLAIR REPORTS FOURTH QUARTER 2021 FINANCIAL RESULTS AND INCREASES QUARTERLY DIVIDEND 25%

 

BALTIMORE (February 23, 2022) – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the “Company” or “Sinclair,” today reported financial results for the three and twelve months ended December 31, 2021. 

 

Recent Highlights:

  • Raised quarterly dividend 25%
  • Renewed key network and league deals
  • Investment portfolio value reached an estimated $1.4 billion at year-end
  • Launched recapitalization transaction to increase Diamond liquidity by approximately $1 billion over 5 years
  • Exceeded certain key financial metrics, excluding the cyber incident impact
  • Named Rob Weisbord Chief Operating Officer and President of Broadcast

 

CEO Comment:

“We exceeded our adjusted free cash flow and adjusted EBITDA expectations for the quarter, after adjusting for the impact of the cyber incident we experienced in October,” said Chris Ripley, Sinclair’s President & Chief Executive Officer.  “We continue to be encouraged by the rebound in the advertising market in 2021 and expect a robust advertising market in 2022, driven by significant political ad placements, continued strong demand from the service and sports betting categories, and a slow recovery in the auto and other supply-constrained sectors.” 

 

Ripley continued, “The year ahead is an important one for our Company from a content and programming perspective.  Already in 2022, we renewed our local digital rights with the NBA & NHL, paving the way for our new “Direct to Consumer” product, debuted two new original programs on our regional sports networks, and secured live tennis rights for the Women’s Tennis Association tour in Germany, Austria, Switzerland, and the Netherlands.  Coupled with the continued roll-out of NextGen broadcasting and the emergence of gamification elements across our platforms, we remain steadfast in our mission of connecting people with content everywhere.”

 

Ripley concluded, “Our stock continues to trade at levels below what we believe the Company is worth on a sum-of-the-parts valuation.  Together, we believe our investment portfolio, our investment in Bally’s Corp, our tax shield from the purchase of our RSNs, and our excess spectrum, that can be utilized more fully in the future with the NextGen technology, is valued at approximately $4.2 billion or close to $60 per share.  Adding in our core business assets, and accounting for our debt, gives us a sum-of-the-parts value almost triple where our stock currently trades.  Supporting our conviction of our stock’s value, we have repurchased over four million shares over the past four months and will continue to be opportunistic in the future on such purchases. In addition, and recognizing our cash flow generation, our Board increased our cash dividend by 25% as another means to enhance shareholder returns.”   

Read more…4Q21 Earnings PR_FINAL

Supplement to earnings 4Q21_FINAL

Earnings slide deck

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