Slide 1: 3Q23 Earnings Presentation
3Q23 Earnings Presentation NOVEMBER 1, 2023 Published by: Sinclair, Inc. 11
Slide 2: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This presentation contains certain financial measures of Sinclair, Inc. (the “Company”), including Adjusted EBITDA and Adjusted Free Cash Flow, which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP") (collectively, the "non-GAAP fi
Slide 3: Forward Looking Statement
FORWARD LOOKING STATEMENT The matters discussed in this presentation, particularly those in the section labeled "Outlook," include forward-looking statements regarding, among other things, future operating results. When used in this presentation, the words "outlook," "intends to," "believes," "antic
Slide 4: 3Q23 Consolidated Results Compared to Guidance
3Q23 CONSOLIDATED RESULTS COMPARED TO GUIDANCE Corporate and For the three months ending S eptember Local Media Consolidated 3Q23 Actuals Tennis Guidance (a) 3Q23 Actuals Other Guidance (a) 3Q23 Actuals Elimination 3Q23 Actuals 3Q23 Actuals 30, 2023 ($ in millions) Guidance (a) (a) Guidance (a) Guid
Slide 5: Debt Repurchases
DEBT REPURCHASES • Company has repurchased over $64 million (face value) of debt since the beginning of June across all three tranches of our notes and our nearest-dated maturity (2026 Term Loan) 3Q23 Earnings Presentation • On average, these repurchases were done at a 24% discount to par for a tota
Slide 6: Sinclair Local Media (formerly Broadcast)
SINCLAIR LOCAL MEDIA (formerly Broadcast) • Committed to traditional local media business with the realization that the industry needs to transform in the coming years, given current secular trends and regulatory constraints 3Q23 Earnings Presentation • Financial and Operational Drivers Include: • R
Slide 7: Charter-Disney Carriage Agreement Impact—The Great Rebundling
Charter-Disney Carriage Agreement Impact—THE GREAT REBUNDLING • Pay-TV model is strengthened • Significantly increases consumer value proposition of pay-TV relative to DTC/SVOD products • Money-losing a la carte DTC platforms incorporated into current pay-TV packages • Continued price increases by D
Slide 8: The Four Strategic Pillars of Local Media
THE FOUR STRATEGIC PILLARS OF LOCAL MEDIA INVESTING IN LOCAL MEDIA THROUGH TRANSFORMATION 3Q23 Earnings Presentation MULTI-PLATFORM CONTENT COMMUNITY & INTERACTIVITY MAXIMIZING IMPRESSIONS BY PRODUCING CONNECTING COMMUNITY & HARNESSING DISTINCTIVE CONTENT FOR ALL SCREENS DATA THROUGH CONTENT, GAMES,
Slide 9: Core Advertising Trends Update
CORE ADVERTISING TRENDS UPDATE • Core advertising excluding political up approximately 3% on a pro forma y-o-y basis during 3Q23 • Current advertising environment is stable; National slightly positive y-o-y in 3Q 3Q23 Earnings Presentation • Home-related services categories (home repair/builders) co
Slide 10: Political—Expect Record-Breaking 2024
POLITICAL—EXPECT RECORD-BREAKING 2024 $11 million in political advertising in 3Q; 4Q23 guidance of $25-$30 million; FY 2023 guidance of $46- $51 million (record for non-political year); 2019 political revenues in were $34 million 23 of 34 Senate races in 2024 in states with Sinclair markets 7 of 11
Slide 11: Distribution Updates
DISTRIBUTION UPDATES • Announced extended affiliation partnership with The CW Network for multiple years and ability to negotiate CW content directly with virtual MVPDs 3Q23 Earnings Presentation • Announced extended affiliation partnerships with Paramount across all 21 CBS network affiliations for
Slide 12: Advancing NextGen Broadcast
ADVANCING NEXTGEN BROADCAST 3Q23 Updates • Continue to deploy NextGen Broadcast technology in additional markets with 70% of all US HH now being reached by NextGen Broadcast • Sinclair has deployed NextGen in nearly half of our 86 markets, covering 74% of our covered population • Expect 10 million 3
Slide 13: Tennis Channel Financial Results
Tennis Channel Financial Results • $ 5 9 million i n total r e ve n u e i n 3 Q 2 3 • $ 1 8 million i n A d j u s t e d E B I T D A i n 3 Q 2 3 • 3Q23 total revenue and Adjusted EBITDA above guidance • E x p e c t F Y 2 0 2 3 r e v e n u e s i n t h e r a n g e of $226- $227 million • Expect FY2023
Slide 14: Tennis Channel 3Q23 audience and social growth
• Tennis Channel’s 3Q23 average audience grew 31% year- over-year; social media impressions grew 187% year- over-year • The streaming platform, TC+, saw its average number of monthly subscribers increase by 11% y-o-y; authenticated viewing for MVPD customers grew by 52% y-o-y • The T2 FAST channel g
Slide 15: Ventures Investment Portfolio Value of $1.17B
VENTURES INVESTMENT PORTFOLIO VALUE OF $1.17B(1) Real Estate • Sequential increase of $7 million in 3Q, $171 excluding approx. $60 million in majority- owned investments • Company capital investments of 3Q23 Earnings Presentation Cash approximately $5 million in minority Direct $364 investments in t
Slide 16: 3Q23 Media Revenue (Consolidated)
3Q23 MEDIA REVENUE (Consolidated) Media Revenue vs Guidance ($ in millions) $780 3Q23 Earnings Presentation $770 $760 $752 $758 $750 $740 $730 $733 $720 $710 $700 3Q 2023 3Q 2023 1 Guidance Actual & PF Results Media revenues exceeded high end of guidance: PF Media Revenues decreased 9% vs prior year
Slide 17: 3Q23 Adjusted EBITDA (Consolidated)
3Q23 ADJUSTED EBITDA (Consolidated) Adjusted EBITDA vs Guidance ($ in millions) $160 3Q23 Earnings Presentation $140 $141 $120 $109 $100 $80 $91 $60 $40 $20 $0 3Q 2023 3Q 2023 1 Guidance Actual & PF Results Adj EBITDA exceeded high end of guidance: Adj EBITDA decreased 30% vs prior year period drive
Slide 18: 3Q23 Adjusted Free Cash Flow (Consolidated)
3Q23 ADJUSTED FREE CASH FLOW (Consolidated) Adjusted Free Cash Flow vs Guidance ($ in millions) 3Q23 Earnings Presentation $50 $40 $47 $30 $20 $14 $10 $0 $-9 -$10 3Q 2023 3Q 2023 1 -$20 Guidance Actual & PF Results Adjusted FCF exceeded high end of guidance driven by: Adjusted FCF decreased year-ove
Slide 19: 3Q23 Balance Sheet (Consolidated)
3Q23 BALANCE SHEET (Consolidated) • Total debt at the end of the third DEBT MATURITY SCHEDULE quarter was $4.2 billion • Sinclair Television Group’s (STG) first lien $1,400.0 indebtedness ratio was 4.3x 3Q23 Earnings Presentation $1,200.0 • STG Total Net Leverage was 5.3x • STG Interest Coverage was
Slide 20: Fourth Quarter 2023 Guidance
FOURTH QUARTER 2023 GUIDANCE MEDIA REVENUE 4Q 2023 media revenue range of $812M to $838M, down 12% to For the three months ending December 31, Local Media Tennis Other Corporate and Consolidated 14%, vs. pro forma 4Q 2022 of $947M: 2023 ($ in millions) Elimination • Absence of political advertising
Slide 21: Full-Year 2023 Guidance (Consolidated)
FULL-YEAR 2023 GUIDANCE (Consolidated) For the twelve months ending December 31, 2023 ($ in millions) Consolidated Revenue: Advertising revenue $1,284 to $1,307 Distribution revenue 1,673 to 1,676 Other media revenue $140 3Q23 Earnings Presentation M edia revenues $3,097 to $3,123 Non-media revenue
Slide 22: Key Takeaways
KEY TAKEAWAYS • Strong 3Q23 financials across the board; met or exceeded guidance in every key metric • Prioritizing strengthening balance; More than $64 million of debt (face value) bought back at an average 24% discount to par through open-market purchases since the beginning of June 3Q23 Earnings