Sinclair, Inc. · NASDAQ:SBGI
Sinclair — Sinclair Broadcast Group — Investor Presentation (June 2021)
23 slides from Sinclair's investor presentation, Jun 21, 2021
Slide 1: Project Active: Overview of Key Growth Opportunities
PROJECT ACTIVE Overview of Key Growth Opportunities June 2021 DIAMOND SPORTS
Slide 2: Company Disclaimer
Company Disclaimer 2 This presentation (including any information that has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries, the “Presentation”) is for the exclusive use of the recipient of this Presentation (the “Recipient” or “you”) an
Slide 3: Table of Contents
Table of Contents 3 Recap of DSG 2021E Financial Guidance1 Overview of Key Initiatives and Growth Drivers2 Overview of DSG Direct-to-Consumer (“DTC”) Sports Platform Opportunity3
Slide 4: Recap of DSG 2021E Financial Guidance
Recap of DSG 2021E Financial Guidance 4 2021E Media Revenue Key Commentary 2021E Adj. EBITDA ($ in millions) • 2021E total revenue guidance of $3.1-$3.2B • Distribution revenue guidance of $2.6-$2.8B driven by timing of MVPD renewals and assumed mid-to-high single digit subscriber churn • Advertisin
Slide 5: Overview of Key Initiatives and Growth Drivers
Overview of Key Initiatives and Growth Drivers 5 Launch of Bally Sports App to unlock digital impressions and drive fan engagement and revenue upside Exclusive, must-have live, local sports content drives significant customer demand Enhanced monetization strategies and sales tools drive linear RSN r
Slide 6: Sinclair's Unique Capabilities Are Critical in Supporting DSG's Continued Success
Provides back office, administrative and other support 6 Sinclair’s Unique Capabilities Are Critical in Supporting DSG’s Continued Success Oversee distributor renewals and negotiations Manage negotiations with sports teams and leagues Provides DTC offering with broader reach and higher value proposi
Slide 7: Overview of DSG DTC Sports Platform Opportunity
Overview of DSG DTC Sports Platform Opportunity 7
Slide 8: Mission Statement
Mission Statement 8 To build a transformative, participatory sports platform, anchored by the most exclusive and relevant live professional games, that provides fans a year-round opportunity to engage with content and communities they are most passionate about 8
Slide 9: Diamond is THE Choice to Build a Comprehensive Sports Platform
Diamond is THE Choice to Build a Comprehensive Sports Platform 91. Reflects unduplicated % of total U.S. households based on RSN and broadcast station coverage per Nielsen Universe estimates; includes YES Network and Marquee Exclusive portfolio of live local sports and deep relationships combined wi
Slide 10: Sport Consumers Want Deeper Immersion and Higher Engagement
Sport Consumers Want Deeper Immersion and Higher Engagement 10 Source: Deltatre Research: Where the Money is Going: The Future of Sports Entertainment (2019); Deloitte: The future of sports broadcasting: Enhancing digital fan engagement (2019); Magid Research 1. Fanatics defined as fans who never mi
Slide 11: Diamond DTC Opportunity Addresses Significant Unmet Market Need
Diamond DTC Opportunity Addresses Significant Unmet Market Need 11 Note: Premium Content defined as Tier-1 Live Professional Content 1. Nielsen Essential Passion Index (May 2019) Diamond assets position an internally built DTC business to disrupt and expand the sports streaming market with exclusive
Slide 12: Exclusive Portfolio of Year-Round Premier Local Sports Rights
Exclusive Portfolio of Year-Round Premier Local Sports Rights 12 Source: Company Management 1. Cubs and Diamond own Marquee Sports Network in a 50/50 JV 2. Diamond holds 20% ownership in the Yankee Entertainment and Sports Network (“YES Network”) Diamond’s portfolio covers all platforms viewers use
Slide 13: Building the Local Sports Experience
Building the Local Sports Experience 13 Exclusive Live Local Games Highlights Breaking News Community Curation Rewards Free-to-Play Games E-Commerce Watch Participate & Play We are building a one-stop destination for the ultimate exclusive live local sports experience
Slide 14: Investment Highlights
Inves rg « y tm ~ pee ent F - os 14
Slide 15: Summary Investment Highlights
Summary Investment Highlights 15 Diamond DTC Uniquely Positioned to Participate in Significant and Growing Market Opportunities2 Massive Content Library Featuring Highly Desirable Exclusive Content4 Attractive Financial Profile with Rapid Growth and Diversified Revenue Streams6 Pay TV Trends Create
Slide 16: Pay TV Trends Create the Need for an Additive DTC Sports Model
Pay TV Trends Create the Need for an Additive DTC Sports Model 16Source: Bain Fandom Insights Survey (April-May 2020) Sports fandom will follow a broader shift away from the linear bundle Video Service Subscriptions for Moderate and Hardcore Fans, Current vs Future ~35% of fans to be outside bundle
Slide 17: Direct-to-Consumer Offering Presents a Clear Path to $2B+ Annual Revenue
Direct-to-Consumer offering presents a clear path for a Diamond DTC business to be a leader in the space and, over time, potentially generate $2B+ in annual revenue… 17 Source: Bain & Company research, Internal company estimates Note: Figures might not add up due to rounding. Numbers above reflect s
Slide 18: Ability to Participate in Additional Large and Growing U.S. Markets
18Source: PwC 2019 Sports Outlook: “At the Gate and Beyond”; Activate Technology & Media Outlook 2021; IBISWorld; NonFungible.com: “Non-Fungible Tokens Quarterly Report Q1-2021” …With the ability to participate in additional large and growing U.S. markets Fantasy Merchandise Ticketing CAGR Sports Be
Slide 19: Sports Fans Willing to Pay for Content Beyond Pay TV
39% 57% 61% Have not paid for any sports related content beyond PayTV 43% Willing to pay for any sports related content beyond TV 19Source: Activate-Sinclair U.S. Consumer Survey (2019) Sports Fans Aged 18+ That Have Not Paid for Sports Content and Are Willing to Pay Top Sports Content and Features
Slide 20: Sinclair's Immense Reach and Scale Across the US
20 Source: Activate Research (1/17/20), Public Filings, Company Internals, SNL Kagan, Sinclair Internal Data, Activate Analysis 1. Excludes YES Network and Marquee; Pre-Covid Cross promotion on RSNs, Sinclair television stations, and national networks will build brand awareness and drive organic DTC
Slide 21: Fan-centric Offering Drives Sustained Growth and Engagement
21 Live and exclusive content serves as the top of the funnel for acquiring customers Gamification features drive fan engagement and positions a Diamond DTC business to participate in large market opportunities Leverage data and fan insights gained Innovate product development and features, include
Slide 22: Attractive Financial Profile with Rapid Growth and Diversified Revenue Streams
A Diamond DTC business will pair modern customer experiences with traditional multiple revenue stream business models Attractive Financial Profile with Rapid Growth and Diversified Revenue Streams 22 Content / Features Monetization Multi-tier DTC Subscription Watch & Play Advertising Participation-B
Slide 23: Mission Statement
Mission Statement 23 To build a transformative, participatory sports platform, anchored by the most exclusive and relevant live professional games, that provides fans a year-round opportunity to engage with content and communities they are most passionate about
Sinclair Broadcast Group — Investor Presentation (June 2021) on 6ix