ROH Parent Company Sinclair Broadcasting Reveals Third Quarter Earnings For 2021
Ring of Honor parent company Sinclair Broadcasting Group has announced its third quarter earnings for this year. This comes in the wake of last week’s blockbuster news that ROH was going on hiatus after this year’s Final Battle event and releasing all of their talent from their contracts. The plan is for the company to return in April 2022. The announcement from Sinclair does not mention ROH.
It does mention, however, that the company’s total debt is $12,530,000, which includes a debt of $8,124,000 for Diamond Sports Group LLC, the OTT service Sinclair is preparing to launch. Diamond is expected to debut around the same time that ROH is expected to return.
The press release reads:
SINCLAIR REPORTS THIRD QUARTER 2021 FINANCIAL RESULTS
BALTIMORE (November 3, 2021) – Sinclair Broadcast Group, Inc. (Nasdaq: SBGI), the “Company” or “Sinclair,” today reported financial results for the three and nine months ended September 30, 2021.
Third Quarter Highlights
* Consolidated total revenue of $1,535 million was flat to the third quarter of 2020.
* Consolidated operating income of $73 million, including $27 million of non-recurring costs for transaction and transition services, COVID, legal, and regulatory costs (“Adjustments”), increased compared to an operating loss in the third quarter of 2020 of $4,216 million, which included a $4,264 million impairment taken on the Local Sports segment relating to goodwill and definite-lived intangible assets, and $13 million of Adjustments. Excluding the Adjustments and impairment, operating income of $100 million increased $39 million compared to the third quarter of 2020.
* Net income attributable to the Company was $19 million versus a net loss of $3,256 million in the prior year period. Excluding the Adjustments, the Company had net income of $39 million.
* Consolidated Adjusted EBITDA, which excludes the Adjustments, of $451 million, decreased 39% versus the third quarter of 2020.
“As the economy emerges from the pandemic, our advertising recovery continues to be strong, with our core advertising, excluding auto, growing versus 2019 across both our broadcast and sports segments,” said Chris Ripley, Sinclair’s President & Chief Executive Officer. “The continuing headwinds from auto component shortages, which in the near-term has reduced automotive advertising revenue, has been mostly offset by higher services and sports betting advertising demand, trends we expect to continue throughout the remainder of the year and into next year. 2022 should benefit from the recent moderation of subscriber declines, as well as further recovery from the pandemic and robust political advertising due to the mid-term election cycle, which should favorably affect overall advertising demand and rates.”
Ripley continued, “Our focus remains on growth opportunities in the broadcast, news and sports areas. New programming, the implementation of gamification elements across our platforms, the ramping up of activities around a ‘Direct to Consumer’ product and the utilization of the ATSC 3.0 technology will all be key initiatives as we move into the next year.”
Ripley concluded, “We are grateful for the patience and understanding of our customers, partners, and employees as we deal with the challenge of the recent cyber attack on our company. Our employees’ quick response and creative workarounds have helped us restore a significant portion of our systems. As we work to complete our investigation, we will look for opportunities to enhance our existing security measures.”