Sinclair Inc Ordinary Shares - Class A SBGI

Sinclair Earnings: Dependence on Political Revenue Is More Apparent Than Ever

No-moat Sinclair posted mostly positive results to start a critical year for the firm. The return of political advertising resulted in revenue increasing 3% year over year to $727 million and adjusted EBITDA expanding to $105 million from $92 million, exceeding management’s guidance. Despite the top and bottom-line improvement, we expect distribution and core advertising revenue growth to remain elusive. We are maintaining our $12 fair value estimate.