Sinclair, Inc. earned slightly lower revenue during the first three months (Q1) of the year as broader economic turbulence brought on by tariffs and looming trade wars caused current and prospective advertisers to pull back on spending.
On Wednesday, Sinclair said its overall revenue declined 3 percent during the quarter to $776 million, which includes $298 million in advertising and $451 million earned from cable and satellite TV fees. Advertising revenue was down 3 percent, which was partially offset by a 3 percent increase in cable and satellite licensing revenue.
In a statement that accompanied the company’s earnings report, Sinclair CEO Chris Ripley acknowledged “macroeconomic certainties” impacted the broadcaster’s advertising revenue.
Still, Ripley noted that some “innovative packaging” of broadcast and cable channels by some pay TV providers are starting to attract subscribers once again, which helps the company’s distribution and licensing businesses. Ripley also restated his optimism that the Trump administration’s view toward broadcast regulations will open the door for “potential strategic options for us and the industry generally,” though he did not specify any plans.
Like other local TV broadcasters, Sinclair tends to experience an advertising windfall in the months leading up to a national election. Political advertising revenue during Q1 was just $6 million, all of which was spent against Sinclair’s local TV station. By comparison, political advertising revenue was $203 million during Q4 2024.
Non-political advertising revenue earned Sinclair’s local TV stations $271 million during Q1, down from the $300 million earned in the prior quarter. Distribution revenue attributed to Sinclair’s local TV business was $395 million, around $3 million more than Q4 2024.
Sinclair said it expects to earn between $270 million and $286 million in non-political, local TV advertising revenue and between $5 million and $7 million in political local TV advertising revenue during Q2. The company’s distribution revenue forecast for Q2 is expected to land between $385 million and $387 million, with total local TV revenue between $680 million and $699 million.
