Sinclair Broadcast Group, Inc.Wednesday reported financial results for the three and twelve months ended December 31, 2022. The results reflect the deconsolidation of the local sports segment comprised of the regional sports networks (RSNs), which are owned and operated by Diamond Sports Group (“DSG”) and its direct and indirect subsidiaries, from the Company’s financial statements and accounted for under equity method of accounting, effective March 1, 2022. As such, the year-to-date 2022 consolidated financial results only include two months results of operations of the local sports segment, while the consolidated financial results for the comparable 2021 periods include results of operations of the local sports segment for the full periods.
Highlights:
- Sinclair Broadcast shares are down during Wednesday's intraday session despite reporting profit in Q4.
- The company saw revenue decline of 35% in the quarter, led by 35% reduction in Media revenues and 60% decline in distribution revenues.
- Excluding DSG, total revenues increased 18% and media revenues increased 19% Y/Y.
- Excluding DSG, distribution revenues decreased 2% Y/Y.
- Total advertising revenues grew 31% Y/Y to $503M.
- Adjusted EBITDA increased 32% Y/Y to $309M.
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| Chris Ripley |
“Sinclair had a solid finish to 2022, setting records for our Broadcast and other advertising and distribution revenues. Strong political revenues were a big factor in the record results, demonstrating the strong value proposition TV continues to offer in reaching the masses,” said Chris Ripley, Sinclair’s President & Chief Executive Officer. “We entered 2023 financially strong and are well-positioned to weather whatever economic environment we face in the year ahead.”
Ripley continued, “Our focus remains on raising the bar of the viewing experience, through providing higher quality programming and increased functionality and interactivity, engaging the viewer at a whole new level. We are ramping up our investment in several areas this year to help drive our business forward, including investments in technology and in our four growth pillars – multi-platform content, marketing services, data distribution, and community & interactivity. We continue to build on our progress in developing the ATSC 3.0 broadcasting standard which we believe will offer numerous incremental business use cases for the entire industry, creating an important diversified revenue stream into the future. Our leadership position in helping develop the technology and in validating its market potential position us well to capitalize on this exciting next chapter of broadcasting.”
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