Sinclair Broadcast Group reported lower earnings as it proceed to separate itself from its money-losing, bankrupt regional sports networks unit.
The company also announced that it repurchased 3.6 million common shares of stock.
Net income fell to $185 million, $2.64 a share, from $2.6 billion, or $35.84 a share, a year ago.
Excluding Diamond Sports Group, the subsidiary that runs the bankrupt Bally Sports regional sports networks, and was separated financially from Sinclair effective March 1, 2022, net income was $189 million.
Also Read: Diamond Coughs Up Bally Sports Rights Payments to the Reds, Keeps Team From Launching Its Own RSN
Diamond Sports lost $94 million in the first two months of 2022. That was before the start of the baseball season in March. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $94 million for January and February.
Revenues fell 40% to $773 million. Excluding Diamond Sports Group, revenues were down 7% and media revenues decreased 6%.
Advertising revenues were down 17% to $309 million. Excluding Diamond Sports, ad revenues were down 6% and core ad revenues — excluding political campaign spending — were down 2%.
Excluding Diamond Sports Group, distribution revenues fell 3%.
“Sinclair is seeing a solid start to 2023, meeting or beating guidance on all key financial metrics,” CEO Chris Ripley said. “Nonetheless, we remain cautious for the full year on expectations for a weaker economy.”
Ripley said Sinclair is evolving from a traditional broadcast company to a diversified content and data distributor. The company is being reorganized with a new holding company, Sinclair Inc., being formed, along with a new subsidiary, Sinclair Ventures, comprising the company’s nonbroadcast assets.
“This year, we are allocating capital towards technology that will transform our operational workflow, both strengthening our returns on investment and improving operational outcomes,“ Ripley said. “At the same time, the last few months have presented an opportunity to allocate capital to buying back our shares.”
