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BALTIMORE - Sinclair Broadcast Group Inc. (NASDAQ:SBGI) has revised its third-quarter advertising revenue guidance upward due to stronger-than-anticipated political advertising sales. The company now expects political ad revenues for the quarter to be between $140 million and $145 million, an increase from the previously projected range of $113 million to $128 million.
The broadcaster also adjusted its guidance for third-quarter core advertising revenue within its Local Media segment to $285 million to $293 million, slightly down from the initial forecast of $288 million to $300 million. This adjustment is attributed to the displacement of regular advertising by the influx of political ads. Despite this shift, the Local Media segment is projected to see a year-over-year growth of 2% to 4% in core advertising.
Overall, Sinclair anticipates total Local Media advertising revenue for the quarter to be in the range of $425 million to $438 million, marking an increase from the earlier estimate of $401 million to $428 million.
For the full year, the company's political revenue expectations have also been raised to $442 million to $469 million, up from the previously disclosed forecast of $385 million to $410 million.
Sinclair confirmed that recent retransmission agreement renewals are on track with projections, and it maintains its compounded annualized mid-single-digit percent growth rate for net retransmission revenues from 2023 through 2025.
The company plans to release its financial and operating results for the third quarter of 2024 on November 6, 2024.
The information in this article is based on a press release statement from Sinclair Broadcast Group Inc. It is important to note that forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected.
In other recent news, Sinclair Broadcast Group announced a robust first quarter for 2024. The company's distribution revenue surpassed expectations, while advertising revenue slightly lagged. Sinclair's Local Media segment showed significant developments, and its Tennis Channel registered $63 million in total revenue for Q1, boosted by increased viewership. The company anticipates political advertising revenues to exceed $350 million in 2024, propelled by heightened activity in key states.
Simultaneously, Sinclair's EVP for Strategic and Legal Affairs at ONE Media, Jerry Fritz, is set to retire in July. Fritz's tenure was characterized by strategic planning and public policy efforts, notably supporting the adoption of the NextGen Broadcast transmission standard. His contributions to the broadcasting industry were recently recognized with the International Achievement Award from the North American Broadcasters Association.
Lastly, Sinclair's Ventures portfolio currently holds a cash position of $318 million, with plans to convert minority investments into majority stakes. The company's consolidated media revenues hit $792 million, with a 10% increase in adjusted EBITDA. For Q2, media revenues are projected to be between $813 million and $832 million, largely driven by political and distribution revenues. These are some of the recent developments at Sinclair Broadcast Group.
InvestingPro Insights
Sinclair Broadcast Group Inc. (NASDAQ:SBGI) has shown a notable uptick in its stock performance, with a significant return over the last week of 8.23% and an impressive 26.76% over the last three months. This positive momentum is also reflected in the company's year-to-date price total return of 14.05%, and a 31.02% return over the past year, signaling investor confidence in the broadcaster's prospects.
InvestingPro Tips suggest that Sinclair operates with a significant debt burden, which could be a factor for investors to consider when evaluating the company's financial health. However, the company pays a significant dividend to shareholders, boasting a dividend yield of 7.11% as of the last recorded date, indicating a strong commitment to returning value to investors. Additionally, Sinclair has maintained dividend payments for 15 consecutive years, demonstrating a stable dividend policy.
From a valuation standpoint, Sinclair's market capitalization stands at $925.75 million, and the company is trading at a price-to-book ratio of 2.74 as of the last twelve months ending in Q2 2024. These metrics, along with the adjusted price-to-earnings (P/E) ratio of -3.08, offer insights into the company's market valuation and profitability challenges over the last twelve months.
For investors seeking a deeper analysis and more InvestingPro Tips, there are 14 additional tips available on Sinclair Broadcast Group at https://www.investing.com/pro/SBGI, which provide further guidance on the company's performance, valuation, and potential investment risks and opportunities.
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