Sinclair turned a second-quarter profit and said it has already received $146 million in political advertising commitments for the rest of this presidential election year.
Net income was $17 million, or 27 cents a share, compared to a net loss of $89 million, or $1.38 a share, a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 42% to $158 million.
Revenues increased 8% to $829 million. Media revenues also rose 8% to $819 million.
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Distribution revenue edged up to $435 million from $418 million a year ago.
Total advertising revenues rose 11% to $343 million, with core advertising revenues–excluding political spending–flat at $303 million.
Sinclair said it has already booked $146 million worth of political advertising for the second half of the year. The company said that compared with $78 million at a similar point in 2020.
For the full election year, Sinclair expects political advertising revenues of between $385 million and $410 million, up 10% to 17% from the last presidential election year.
Sinclair’s Tennis Channel, the subject of sale talk earlier this year, generated $1 million in operating income on $67 million in revenue.
Looking ahead to Q3, Sinclair said it expects to generate opening income of $148 million to $173 million, with local media contributing $153 million to $178 million and the Tennis Channel registering $8 million in profit.
Total revenues are expected to be between $897 million and $929 million, with local media contributing $823 million to $852 million and tennis channel generated $63 million in revenue.
“Sinclair delivered solid second-quarter results, meeting our guidance expectations across major financial metrics, including a $105 million monetization of an investment in our Ventures portfolio,” CEO Chris Ripley said.
“With almost 60% of our Big Four subscribers still to be renewed this year, we are confident in our ability to grow net retrans in line with our two-year CAGR estimates,“ Ripley said. ”As we enter the second half of the year, we are buoyed by strong momentum and multiple cash flow drivers. Political advertising revenue is on track to be our largest ever, with expected double-digit growth rates over the 2020 presidential election year. Coupled with growth in distribution revenues, and continued strength in core advertising trends, we are well-positioned for a robust finish to the year.”
