Sinclair swings to profit in 4Q, misses revenue forecast
Sinclair Broadcast Group swung to a profit in the fourth quarter, but revenue plunged, missing Wall Street’s expectations.
The Hunt Valley-based TV station owner reported income Wednesday of $55 million, or 79 cents per share in the October-to-December period, compared with a loss of $89 million, or loss of $1.18 per share, in the fourth quarter of 2021.
Total revenue fell 35%, to $960 million in the three months that ended Dec. 31, compared with $1.47 billion in the same period a year earlier. Wall Street analysts had expected revenue of $981.9 million.
The company’s stock skidded nearly 6% Wednesday, closing down $1.14 a share to $17.84 each.
The results exclude the company’s regional sports networks, which are owned and operated by
Diamond Sports Group and were deconsolidated from Sinclair’s financial statements as of March.
Diamond, the nation’s largest owner of cable TV sports channels that showcase more than half of all MLB, NHL and NBA teams, skipped a debt payment last week, setting up a potential bankruptcy reorganization. Sinclair, Diamond’s owner, had twice taken a large loss on the networks it bought in 2019 for $10.6 billion from The Walt Disney Co.
On Wednesday, Sinclair reported record fourth-quarter media revenue of $952 million, a 19% increase from the fourth quarter of 2021. Total advertising revenues jumped 31% to $503 million.
“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 and
CEO, in an announcement.
Ripley said the company’s focus will remain on raising the bar of the viewing experience through higher-quality programming and interactivity. The company is financially positioned “to weather whatever economic environment we face in the year ahead,” Ripley said.
Sinclair said it expects revenue for the first quarter that ends March 31 in the range of $768 million to $787 million.