Broadcast and media company Sinclair Inc. reported political revenue of $138 million for the third quarter, slightly below updated forecasts.
In September, the company raised its forecast for the quarter to approximately $140 million to $145 million, up from its previously announced forecast range of $113 million to $128 million. The company attributed the error to the cancellation of political ads in late September, with $5 million in lost revenue due to late ad cancellations during the quarter.
However, the company noted that it reported record revenue in the third and fourth quarters, rising through Election Day, as well as for political advertising for the full year.
Political revenue estimates for 2024 are $406 million, up 16% from the 2020 pre-Georgia runoff total. This total also includes $26 million in cancellations as “dollars have moved toward states and local markets outside of our footprint.”
Total revenue increased 20% to $917 million in the third quarter compared to $767 million in the same period a year earlier. Total advertising revenue reached $433 million, up 42% from $304 million a year earlier.
Net income attributable to the company was $94 million, following a net loss of $46 million in the same period a year earlier.
“Sinclair delivered solid results in the third quarter, as core advertising revenues grew 1% year over year, despite record political revenues,” said Chris Ripley, President and CEO of Sinclair. “This is an unprecedented situation in the recent history of Sinclair and perhaps the industry, capable of increasing advertising revenues in the third quarter of a political year. Total advertising revenue increased 42% year-over-year and distribution revenue grew 5%.
Ripley: “We have reached an agreement to renew retransmission consent agreements covering 78% of our Big 4 network MVPD linear subscriber base this year and are confident in our ability to increase net online retransmission revenues with our previous mid-single CAGR estimate from 2023 to 2025. Our industry-leading core advertising revenue trends and with the majority of our retransaction and affiliate agreement renewals at network now behind us, we believe we are well positioned to end 2024 on a positive note.”
More to come.