Sinclair's Q2 2025 Earnings Call: Unpacking Contradictions in Retransmission Fees, Advertising Trends, and Revenue Expectations

Retransmission fee trends and FCC regulation, core advertising trends and visibility, advertising revenue growth and expectations, retransmission revenue growth and expectations, subscription dynamics and retrans growth are the key contradictions discussed in Sinclair's latest 2025Q2 earnings call.



Financial Performance and Guidance:
- Sinclair reported consolidated media revenue of $777 million in Q2, slightly below guidance, with total advertising revenue in line with expectations.
- This was mainly due to softer-than-expected distribution revenue from slower virtual MVPD subscriber growth, despite core advertising revenue being in line with guidance.
- For Q3, the company provided adjusted EBITDA guidance of $71 million to $93 million, reflecting revenue dynamics and expectations for continued operational excellence.

Regulatory Environment and M&A Activity:
- Sinclair welcomed recent court rulings, such as the vacating of the 2 Big 4 rule and multicast restrictions, which are expected to open up growth opportunities.
- The company is actively pursuing M&A opportunities, with plans for 18 more JSA buy-ins and other transactions, which are expected to contribute tens of millions of dollars in additional EBITDA.

Advertising Revenue and Economic Trends:
- Core advertising revenue for Q2 was $272 million, down 4.7% year-on-year, influenced by macroeconomic and tariff pressures.
- The company expects core advertising revenue for Q3 to range between $303 million to $314 million, with some signs of stabilization and optimism for improvement later in the year.

Ventures Portfolio and Monetization Strategy:
- Sinclair Ventures had a cash balance of $393 million at quarter-end, up $39 million sequentially, with $6 million in cash distributions and $11 million invested.
- The company is strategically positioned to monetize minority investments, with Tennis Channel and Digital Remedy being core assets, and plans to further monetize other assets in the portfolio.