BALTIMORE, Nov. 4, 2020 /PRNewswire/ — Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the “Company” or “Sinclair,” today reported financial results for the three and nine months ended September 30, 2020.
Third Quarter Highlights
- Consolidated total revenue increased 37% to $1,539 million as compared to the third quarter of 2019, with gains driven in large part by the Company’s acquisition of 21 Regional Sports Networks (RSNs) and Fox College Sports in August 2019, as well as higher political advertising revenue. Included in the quarter is a $128 million accrual for rebates to distributors based on minimum game guarantees.
- Consolidated operating loss of $4,178 million included a $4,226 million impairment taken on the Local Sports segment relating to goodwill and definite-lived intangible assets, and $13 million of non-recurring costs for transaction, COVID, legal, litigation, and regulatory costs (“Adjustments”). Excluding the Adjustments, operating income of $61 million decreased $147 million compared to the third quarter of 2019.
- Net loss attributable to the Company was $3,210 million versus net loss of $60 million in the prior year period. Excluding the Adjustments, the Company had net income of $161 million.
- Consolidated Adjusted EBITDA, which excludes the Adjustments, of $736 million increased 97% versus the third quarter of 2019.
“Driven by stronger than expected political and sports advertising revenue, and stringent cost control measures during the pandemic, Sinclair’s results for the quarter, excluding the impairment, exceeded our expectations and guidance,” commented Chris Ripley, Sinclair’s President and Chief Executive Officer. “While core advertising trends in our Broadcast segment continue to face challenges due to the pandemic, we did see improvement as we moved through the quarter, despite having to balance strong political demand that competed for inventory.” Ripley continued, “COVID-19 has also exacerbated subscriber churn which has impacted results; however, Sinclair has numerous initiatives that are expected to be drivers of growth in the years ahead. These include a new sports app planned to launch by the beginning of the baseball season in the spring of 2021, the continued roll-out of NEXTGEN TV expected to be available in approximately 45 markets by the end of 2021, and the premier of The National Desk, our new headline news service launching in early 2021. We believe these initiatives, our free, over-the-top ad-supported digital platform STIRR, gamification and direct to consumer and legalized sports betting opportunities that the company is exploring, position Sinclair for continued success in the years ahead.”
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