Sinclair Inc (SBGI) Reports Decline in Q4 and Full-Year 2023 Revenues Amidst Strategic Adjustments
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Total Q4 Revenues: Decreased by 14% year-over-year to $826 million.
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Media Revenues: Q4 media revenues down 14% to $821 million; full-year media revenues decreased by 20% to $3,106 million.
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Advertising Revenues: Q4 advertising revenues fell 28% to $363 million; core advertising revenues up 2%.
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Operating Loss: Reported a Q4 operating loss of $386 million, including significant litigation settlement accrual.
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Net Loss: Q4 net loss attributable to Sinclair was $341 million; full-year net loss of $291 million.
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Adjusted EBITDA: Decreased by 41% in Q4 to $181 million; full-year Adjusted EBITDA down 42% to $549 million.
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Debt Repurchase: Repurchased $27 million of debt in January 2024, continuing the deleveraging effort.
On February 28, 2024, Sinclair Inc (NASDAQ:SBGI) released its 8-K filing, detailing financial results for the fourth quarter and full year ended December 31, 2023. The company, a diversified media entity and the second-largest television station operator in the U.S., faced a challenging year with a decline in total and media revenues, alongside a significant operating loss due to non-recurring costs, including a litigation settlement accrual related to Diamond Sports Group (DSG) litigation.
Company Overview
Sinclair Broadcast Group operates 185 stations across 86 markets, with a portfolio that includes the Tennis Channel and four multicast networks. The company's recent developments include the acquisition of WTA rights in India and Spain for the Tennis Channel International, and a settlement with DSG that resolves outstanding litigation claims and reorganizes DSG's assets to better position future RSNs.
Financial Performance and Challenges
For the fourth quarter, Sinclair reported a 14% decrease in total revenues to $826 million, compared to $960 million in the prior year. Media revenues also saw a 14% decline to $821 million. Advertising revenues were hit hard, with a 28% decrease to $363 million, although core advertising revenues showed a slight increase of 2%. The company's operating loss stood at $386 million, including $499 million in Adjustments, primarily due to a litigation settlement accrual. The net loss attributable to Sinclair was $341 million for the quarter.
The full-year results mirrored the quarterly trend, with total revenues down 20% to $3,134 million and media revenues decreasing by the same percentage to $3,106 million. The net loss for the year was reported at $291 million. Adjusted EBITDA for the year decreased by 42% to $549 million, primarily due to lower political advertising revenues in an off-cycle election year.