Sinclair reported lower net income in the first quarter as distribution revenues rose and ad revenue — excluding political spending — dipped.
Net income fell to $23 million, or 35 cents a share, from $185 million, or $2.65 a share a year ago.
A year ago, Sinclair had a tax benefit of $204 million in the quarter. Income before taxes was $21 million, compared to a loss of $11 million in Q1 2023.
Revenues increased 3% to $798 million. Media revenues also increased 3%, reaching $792 million.
Advertising revenues rose 4% to $321 million. Core ad revenues — excluding political spending — were down 3% to $297 million.
Sinclair sold $24 million in political advertising during the first quarter and as of May 1 had prebooked $77 million in political ads through Election Day. That compares to $21 million at the same point in 2020 and $28 million in 2022.
Distribution revenue rose 2% to $436 million.
Sincialr’s Tennis Channel contributed adjusted EBITDA of $25 million in the quarter on revenues of $63 million. Ad revenue was $9 million.
For the second quarter, Sinclair said it expects total revenues to be between $823 million and $843 million and ad revenues to be between $341 million and $358 million. That would include $29 million to $35 million in political ad revenue.
"Sinclair delivered solid first-quarter results, meeting guidance expectations in our local media segment and exceeding adjusted EBITDA expectations at Tennis Channel in the quarter,” CEO Chris Ripley said. “Core advertising trends remain solid in most categories, with our effective yield management and sales training processes driving industry-leading core growth over the past several quarters.
“In summary, Sinclair is in a strong position for both the short and long term, with our emphasis on growing net retransmission revenues and maintaining industry leadership in core advertising revenue growth,” he continued. “We have laid the groundwork for a promising future, and we are excited about the opportunities that lie ahead of us.”
