Sinclair Posts a Loss in Q2

Right-leaning broadcast company Sinclair Inc. reported significant financial challenges in its second quarter, posting a net loss of $64 million as revenues fell. This marks a sharp reversal from the same period last year when the company recorded a net income of $17 million.

A key factor in the downturn was a 6% decrease in total advertising revenues, which dropped to $322 million compared to $343 million in the prior-year period. Overall media revenues for the company were also down 5%, falling to $777 million.

While total advertising took a hit, the company saw a bright spot in its core advertising revenues, which exclude political ad spending. Core advertising grew by 4% to $316 million, suggesting the overall decline was heavily influenced by the absence of major political campaign spending compared to the previous year.

The company's total second-quarter revenues decreased by 5% to $784 million. The financial strain was evident across the board, with operating income plummeting to $21 million from $64 million a year ago. This resulted in a diluted loss per common share of $0.91, compared to earnings of $0.27 per share in the prior-year period.

Despite the difficult quarter, President and CEO Chris Ripley stated that the results were "solid" and that the company was "successfully navigating a challenging macro-economic environment." He noted that the Adjusted EBITDA of $103 million, though down 35%, exceeded the company's guidance. Ripley also expressed optimism about ongoing industry deregulation and pointed to strategic growth in the company's digital offerings, multicast networks, and sports podcasting ventures.