Sinclair Broadcast Stock Gains On Q2 Earnings Beat, Core Advertising Market Recovery, Strong Q3 Guidance

Sinclair Broadcast Group Inc SBGI reported second-quarter FY21 revenue growth of 26% year-on-year to $1.61 billion, beating the analyst consensus of $1.59 billion.
Media revenues increased 27% Y/Y to $1.6 billion. Non-media revenue declined 47.8% Y/Y to $12 million.
Total advertising revenues rose 109% Y/Y to $491 million due to the general recovery of the advertising market from the pandemic and the resumption of professional sports games partially offset by the absence of political revenues.
Distribution revenue grew 6.7% Y/Y to $1.08 billion, driven mainly by the absence of accruals for distributor rebates tied to minimum game guarantees partially offset by the dropped carriage of the Company's RSNs and subscribers churn.
EPS loss of $(4.41) beat the analyst consensus loss of $(4.47).
The adjusted EBITDA margin expanded 706 bps to 26.9%.
Sinclair held $964 million in cash and equivalents.
Results for the quarter were solid, as it outperformed expectations amid the continued recovery in the core advertising market, timing of expenses, and ongoing cost control efforts, CEO Chris Ripley stated.
Outlook: Sinclair sees Q3 revenue of $1.549 billion -$1.618 billion versus the analyst consensus of $1.59 billion.
The board declared a quarterly cash dividend of $0.20 per share payable on Sep. 15 to the holders of record on Sep. 1.
Price action: SBGI shares traded higher by 3.56% at $29.28 on the last check Wednesday.

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