SBGI - Earnings call transcript Q1 2021 | Sinclair Broadcast Group, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to Sinclair Broadcast Group's First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Lucy Rutishauser, Executive VP and Chief Financial Officer.

Lucy Rutishauser

operator. you, Thank call and the Chief today Chris Investor are Revenue; Participating Rob with Weisbord, President Relations. President, Vice CEO; Steve and President Ripley, and on Zenker, me of Advertising Broadcast McIntire Billie-Jo begin, we before will our disclaimer. forward-looking make statement And

Billie-Jo McIntire

be www.sbgi.net. call on future important Such filed as accessed among forward-looking will differ uncertainties. made results. include forward-looking quarter public. release. to its no the Such are our uses Actual risks take EBITDA, from In Regulation to quarterly adjusted company is EBITDA on cash formulated and source subject company's not free to evaluation. These results call in website frequently from in website with of measurements Certain as as measure to adjusted and The replay reconciliations available described other first included and being been and you are the non-GAAP result discussions by measures forth will website provide The this other factors call does on factors. considers at the are GAAP investors company our statements company believes not company's and may future FD, highlights. the next industry available Included Chris could company differ through and the things, matters lenders SEC available be until adjusted our may with operating discussed also of that adjusted now various non-GAAP in financial financial the on be its earnings earnings our financial of operating set The used in meant statements the replace forward-looking EBITDA to a www.sbgi.net. webcast flow can be Ripley Further forward-looking have can statements. is on regarding a release. uses measures, its or accordance information performance key The indicator a most GAAP which found operating formulations. of statements recent basis. company's assets. a be company will A measures with this of those in a accordance specifically the comparable update reports will GAAP The remain company of these number reconciliations not of leverage. measures undertakes the as and and obligation an to discussion analysts,

Chris Ripley

Good morning, everyone.

in months. company improvement media better continued in and ongoing environment. made than amount and the also the distributor quarter Our results EBITDA other core quarter revenues for advertising and change the revenues, we the our for stations local exclude despite expectations the of first team market, the which and but XXXX in of core forma trends XX Advertising which timing first as we part the expectations segment's first continue in the quarter reflecting due the sale were pandemic guided finishing in to improve segment the beat to in pro XXXX, large combined broadcast exceeded to past flattish and of sports rebates ad our our

of and Broadcast last by April was month XX% impacted year alone that the and first in negatively was month the XXXX. of XX% for recall, you full COVID. down quarter As other second

ad that the factor One will the likely low-single be close in up impacting keeping XXXX component industry, upcoming was categories eye more year in XX% spending the is over constraints a from ship and expected, the auto is sales, rubber station down are on digits supply that a which quarters. comparison. adjusting when item and of April representative which well-exceeded XXXX, As we're this the April for

the for is very encouraged category auto betting right of has be that XXXX in in the to services the market, now. continue industry, Overall, seen core which by quarters COVID in progress say sports I categories. is and the we however, particular strength While would visibility comping the category low against the weak ad

NHL to side, advertising On spring the of schedules training time slightly expected. proceeded according their lower started sports and games guidance for the QX mainly sports seasons full the NBA our to revised the segment regular a season to than range, was and expected than fewer XXXX, quarter season. MLB their on is and for due MLB we first Core play for

game However, the per revenue up XXXX. over our average in was first quarter

launched viewers more GO app much initial of authenticated Bally show stats the app. that was of quarter more by our the guided gives and NBA we the we've the than COVID taking sports good on to last the Sports available due and games NBA the year, were expecting QX season. to there experience in gains we Fox additional the normal XXXX, second we April, Early the in usage Comparing quarter users NHL functionality reminder, this no gains a to feedback RSN the from positive of are quarter professional anticipated anticipated when been that off and we're a aided interactive quarter. XXXX As of versus previously users second a than in second start new of receive app. a are advantage robust in to In has and quarter

to sports Bally to We're by able app viewer to Bally engagement expect Bet. between consumer experience features gamification diligently maximizes and seamlessly app later Corp Bally's elements that move working year. Bally the back forth additional being new betting entertainment Sports introduce create and We with a and including the in

RSNs such day the programing the Bally's content. parts Additionally, to non-game exploring goal would we with of provide that upgrading are

each which produced other week creating in news to the and cable share Desk side, alternative and allows content our national viewers perform us The the our of to the than for expected. and news. with specifically National program airs country, has content news feedback On continues unique commenting we programs along from that morning timely Viewer take many of the premiered different broadcast and XX than better National the across January positive broadcast hours with most to cable. on nets relevant markets the X,XXX and created across local been a is better it it with Desk

investigative the on comprehensive encouraged issues, evening program gotten by the this the uncovering plans are year. corruption organization pride we the ourselves coverage as We and have is later and other reception hours the that local into has to Part expand of an injustices. our journalism, program news

impact all year consecutive and their affiliate for year, a one bringing third making This Maine and the IRE get Editors bring trend's from uncovering received residents relentless charitable Through activities. issue culminating the is our through investigative fixed, crisis prestigious fundraisers' Sinclair's team's insightful Reporters very the type passing award we is problem our a that better a in rectify hallmark that public to our line for communities issues for Portland, we light of addressing Congress for in and announcements of and the support this the in shortcoming to legislation impact Investigative stations which the have For effort, I'm place the as It help that of in them in to and fought received proud operate that Maine. all [ph] resolve better year, news lives, Award. service our of serious the our communities issues as we to to efforts are issue. our well CBS inefficiencies other institutions. coverage and in stations WGME, present and or alleviate the helped

and Director, announced Board out be backgrounds For to that local coats. in as example, school Laurie of and a is over XXX,XXX thousand and skills, diversity in seek million an helped collecting we female meals our XXXX, over distributing for as first would backpacks to over relief, our an Beyer. our and schools, disaster director also April, to viewpoints governance. while two and to million $XX toys I XX,XXX addition addition pounds want nine new food million strengthening organizations, named mention experience, in commitment organization, our we agencies over we also organization in of XX,XXX and supplies raise reflects Laurie and non-profit expanding providing and

behind to and could is be what ahead. making minute on growth drive dynamics impact the the Finally, organization the the believe talk future of we efforts for to a Sinclair I about years the want some in

of for bigger sports no represents secret carriage the scrambling is the distributor households a it theoretically to teams' unique. access fill they in sports favorite our RSN less people of total or model provide the RSN their regional cutting to approximately At had million than end our addressable of It of possible opportunities million subscribers, dropped XXXX, of to a most desire is the is geographic double. meaning means. for The way more void RSNs able direct subscribers with of left they It business content. to One total the Sinclair and choose that programing XX watch under in way we the million XX MVPDs cord number consumers territories, the half digital be consumer and that going than many subscribers which is are DXC the households imperative sports local that through XX have the consumer team.

currently of the say Because to carrying to the traditional such via previously, content a the be the will programing. reach product. direct to as consumers available particulars have the these as [ph] this can that what consumers the that As over-the-top as of price launch programing be give the at product of you an will still subscriptions, other not part platforms. on developing to away, through months the accessibility through to launch But are subscriptions, intent distributors many I is the is basis I complement or the of mentioned currently the I the similar a access ways way we made is we details app do time available approach

the interacting even of participate, are programing, more of of and opportunities to significant. Once utilization advertisers. simply including today, polls, the revenues I virtuous cycle activities that the as than exist on distributor aspect Bally's revenue unfortunately increased live watching RSNs, that will attention direct-to-consumer is are to viewer where These digital and Bet. desire games in content upgrades engaged through more viewing likely said, the new far to is generation activity statistics, much is engaging incremental with the and subscribe it's from becomes sports other consumers from viewers and accessible the a functionality in sports. the and have dynamic viewing elements making they believe monetization to and including of as programing traditional the they that not authenticated Bally make watch, fans, business' socializing of with more today this from the which live platforms. something viewer, and and offset loss programing Fueling so choice viewing. churn news an gamification the team's personalized and of does more recording the in viewer another how all part ideal. to contest, experience, making potential the the of developed of we more totally direct-to-consumer watch currently of possible, the invested the with not become This capabilities, make of they the the are a we watch playback via that enhanced interactive As you will experience ultimately conjunction games, These revenue ways incremental all We And sharing subscribers benefit bet who the in like untapped.

its Telecom and generate of also number are to revenues SK will ways now Another X.X the the tested technology, of opportunity the mobile launched, number a platform but TV are a being public. initiative growth sold is ATSC having while this produced industry enable revenue with X.X is XG years, ATSC our for with partnership X.X approaching. the is a us talked or TV. to mobile entire There of prototype monetization and better-serving being and receive Cast.era We've about for markets for future that new able phone signal, XX ATSC being completing incremental TV testing NEXTGEN NEXTGEN

An With volume as video compared example be current able new broadcast standard. Sinclair and five data the broadcasters transmitted the to being be times the capable to inherent four and value the to unlock the technologies, transmission ability to of of content broadcast spectrum. of other would transmit will the

quality, excess superior industry higher the immersive would content be device, wholesaling high Sinclair enabled entire the to access and potentially video, example number the ultra sound. Another on Establishing subscription-based data targeting the inside ways, the and provide of But definition industry. for ability will other benefit services a video benefits quality extend immersive in and outside products, higher firms spectrum geographies. and can capacities far including audio and value and experience. to audio with conditional beyond other household broadcast

be In to have areas. robust efficiencies latency Because spectrum of receiving increased remote the the the devices. and classes in cellular support devices it important Of many by inherent does watching sports synchronicity mobile-first not including help is provide providing on to ability used addition, the betting, to communities including present spectrum to learning can weaknesses emergency under-served when portability X.X broadcast and issues interest service. or to reliability to of and some ATSC is reduce WiFi particular live help and brings sectors all mobile a broadband opportunities alerting standard,

there last spectrum We great bring broadcast make major spectrum use fronts based FCC X.X of which progress network for asset of is the was GPS per MHz-POP many our Enhanced auction. and on spectrum. $X appliances that Our those making spectrum, JV on opportunities. of in new believe value services Sinclair, Cast.era SK billion the approximately to is is will but one valuation to price our with average that Telecom applying beneficial hidden

to sum in that is one to we the Lucy revenue execute With the turn same the multiple while I So, which monetization viewer financials today, of level I'll plus over quarter. it future others just growth initiatives monetization cover a on of it the of believe we is level in up, that the viewer expected to the are a to that, mentioned, of the drive as at future.

Lucy Rutishauser

Chris. you, Thank

First, items to some housekeeping note.

sports rebates received paid the calls, when by distributors previous local be in minimum the NBA As resulted be discussed in were impacted second on year-end we our in can to earnings result and finalized distribution reported rights games guidance. revenues for more in anticipating we guarantees, scheduled the local which in segment game sports from broadcast After their to our the results of teams. February, half the season, which XXXX-XXXX than can

less this in and year, year. revised be in rebate the resulted a As now decrease was $XX $XXX to expected be impacted and of $XXX of estimate million of of in to in first in From fully million result teams paid we in favorably million approximately a cash which $XXX quarter $XX number million million QX the of the the expected with in paid and be increase $XXX to first segment. revenues is in games payment expected XXXX, to anticipate our XXXX. rebates we quarter due the in XXXX $XX paid accrued of booked prior the local of EBITDA the remainder half is the standpoint, distributors lower adjusted million million rebates XXXX. sports credit of The distribution a from also this The the another the first

XXXX. of $XXX amount a of after to this revision of expected and the in from guarantees game is million, now second expected last result of $XXX was be of $XX quarter, to million the realized Which in and minimum was the year million, the $XXX estimated last total the million quarter expected of If the received $XX million be year. $XXX million be year be from the million and to to received you rebates as first was that this quarter realized remaining which recall $XX teens

numbers that this in keep addition level, in morning, an the on as through detailed to access to past. believe in results. provides our We we a the the our can I will schedule earnings prepared you important be on I aspects will allow which Lastly, all prepared remarks release to analysis effort more my our format focus numbers. the this public have not website have going you higher and detailed Instead, of

range year to well three political same the So, our versus for the XX primarily core revenues the better other X% with to non-political Media the sale distribution a revenue. last as due stations absence meaningful the than period revenue exceeded guidance as segments. now turning reflecting being broadcast a year, of decreased on XXXX of and quarter months. advertising Media ago, revenues the in and expected

the higher year political non-recurring on first better lower the advertising, and lower X% expenses. still Distribution in subscriber quarter controls was and slight Adjusted other again our items than increased last guidance. the in this guidance what excluding a EBITDA million year advertising versus companies. was results mid-single cost, to than stations the quarter [ph], due increased broadcast percent. we to Fox have primarily betting anticipated. core through And once expenses compare not XXXX, if of up our exceeded revenues almost which advertising year-over-year reflecting were primarily and of from above our year's Our been the compared but country result were excluding last entertainment in three we versus same were the was first station economy quarter digit due the higher the year, recovered last primarily ago. Super our advertising for first X% network is X% sold and this range, churn if core good pandemic. and than fully for million, low-single revenues very that categories, we quarter to compensation expectations adjust would for cost $XXX digital ago, the COVID for down XXXX to service The digits the considering the down better first of sports you slightly, is And from came Bowl year moving working is impact first improvement year, year core growth a range but and particularly CBS quarter a from Media $XX XX% guidance drop up

by local the was Media the the X% declined the advertising higher revenue, core churn, than a segment quarter, for the ago. up benefited which the games primarily to Local on out-performance. for beat ago, were media of first sports subscriber distribution total quarter of and majority the played partially sports amortization rights credit quarter year also distribution accounting due the guidance Media greater the increased well XX% as a sports with from during a as from revenue carriage to the expenses and number year games one-time from Also distributor in million our dropped year costs. related primarily compared to of approximately services turning quarter and costs rebate revenues higher which the segment. more rebate the local facilities, of revenues production production game sports and impacting Now, new re-brand. the transition ago RSN first for app sports lower $XX the quarter to offset mover Bally the

Major rights of League overall as well first Baseball $XX training favorable to due the the in guidance Excluding higher impact the quarter, expenses savings. sports as spring cost played expected than fewer games media amortization by were to million

the Our to more by primarily end the local production distribution sports' from of but year, due Adjusted $XX million down $X EBITDA high on the expenses. the than prior guidance quarter first lower of rebates was net the beat revenue lower and for million

guidance compared adjusted quarter one-time consolidated and which media For expenses $XXX EBITDA both to for Adjusted EBITDA just revenues Sinclair's for outlined. decreased million our of from exceeded range. the first to first company, quarter revenues of the of the the high X% million end reasons But guidance, the $XX excludes declined total XXXX. company

the the adjusted cash primarily end flow, excludes consolidated of was $X is on low adjustments, approximately million First which fee $XXX free the the adjusted million, [ph]. than range EBITDA which guidance better quarter

loss common was ago. on had earnings income For non-recurring versus share average the a $X.XX quarter for a weighted for a to diluted per year per diluted Adjusted million shares, we ago. per the compared items, $X.XX share the share quarter, $X.XX $X.XX of XX year

which Television $XXX ratio a now of to first Diamond. net leverage the was the company turning and quarter, the at revolver indebtedness quarters the net Group's STG drawn leverage debt balance revolver million at through basis on cash Diamond's trailing range. lien as was receivable credit X.Xx at the under leverage sheet. on Diamond's trailing end quarters quarter strong of $XXX X.Xx Now at Total the million our Neither was and Sinclair Consolidated on balance on end $XXX target four X.Xx covenant was quarter quarter was silos including quarter board lien is XX%. end the of Xx accounts $XXX the was during X.Xx. ratio consolidated first over a was and the the at in a $XX.XXX for the end and net only which X.Xx was net million. covenant first on quarter, the a the billion facility in if our X.Xx. of of a eight leverage indebtedness of springs is bonds, million

been During $XX at while repurchased paid the shares, but equity our dividends levels. and our million trading quarter, you of companies the stock of down XX% we we million common last their the remind year total in debt many almost we stock and buying half recently recovered, current $XX as paid market have only of

second to driven segments, and increase revenue off XX% to offset core The approximately guidance depressed full-year partially media year. for other second to broadcast pandemic the is non-political expected a quarter by revenue guidance XXXX. is advertising by XXXX quarter primarily our The $XXX political to $XXX as lower our higher is is XX% of million. upside revenue Turning up and

year. compared adjusted be is Second between to EBITDA expected $XXX $XXX last quarter and to million million $XXX

quarter sports up $XXX second local is the revenue segment, to to be million. XX% expected to For media to XX% $XXX

were last live revenue. there the sports lower and year games were of they played no major in distributor accruals for distribution quarter rebates reminder, second which a As

be up to to year, are For XX% revenues the full media expected XX%.

be to $XXX XX% million. be to expected EBITDA to EBITDA to to million. XX% adjusted XX% $XXX expected $XXX to $XXX XX% to to adjusted is down Full-year quarter up Second is

expected For media revenues to second XX% company the quarter be consolidated up XX%. to

With adjusted to second cash up up to for quarter XXX% be for $XXX cash $XXX flow questions. XXX% it XX% adjusted EBITDA million up to to $XXX to EBITDA quarter free was free of would expected Second million. $XXX to XX% that, flow adjusted to I like open and an

Operator

Thank At Instructions] conducting you. session. question-and-answer [Operator Company. Benchmark of Please this Kurnos be time, first from is question proceed. Our a Dan we'll

Dan Kurnos

Good thanks. I couple little more how your RS Chris, from [ph] commentary I much morning. DTC, of a TAM. there at and tone want change prominent you, you've on the there if Great, is time. at we to just get the things, this originally, a a Maybe, a around challenges clearly just think XXXX a experience? of all got with ongoing distributors and thought more the super-fan in sense Obviously, [ph] a big

you extent part. some be the day might of on that to How there? you relationships? you your you navigate color kind have us Just give change there talked think a do can improving also around Then understanding about sea existing to

it's the you maybe in I improved was ad talks you surprisingly with be between even advertising. look think maybe yield like? and strong. the thanks. how ad advertising Bally's be helpful, distribution and could guide to been like dayparts [ph] and super approved longer-term To think think, are what I QX XX/XX Historically, the distribution to others extent that would in the split It

Chris Ripley

really can were watch RSNs tremendous you collection piece that and to the like very what you you us, have followed Great. a the is what's bullishness launched and who our the accurate great excited TV gone massive picking platform have say going on interaction and a that no a if really, We going socialization them up that opportunities, details build opportunities rights on programing to we're App enhances business get you increased we're and day to while areas, ago. of for for which and fast, value viewer of on Bally's. MOU game in sports, a the is the adjacencies growing was have filling platform. I pick board in non-game that because I weeks little arrangement latent direct it which these the we a well risk are day financial country we if NFTs dayparts, fan. noticing to difference to we've know for about us got really, what where we would you in programing, it the accurate for merchandise, get did a the that. on you're When becomes out interactive we're the your know the taking drawing like digital as that on other to tone other into of lot and our Everywhere on largest that out going and side and to foundational our There there in fan that of that the we're sports Look, means, we with funnel really consumer. games so there because are on in just would Thanks, the plan that's on It's betting, is and direct really and premium up outside our Dan. this to Then is when a pre-post the in relates coming to consumer into like arrangement headed is you're realize with nothing couple Bally's sports announce plan that of in dig an as improve to a it's opportunity other with I programing. continue think with think

related increase seen basis just Those recovery wavered board additional and post at that So, our situation. That's COVID to and programing sports best all haven't upgrades programing. drawing so the earlier per the and really blown has the the hit that's in outside When sports starts be upside. we has a that to here new are non-game worlds the mentioned hit seeing the strength far of an what advertising game, advertising. a sports away on in we've of post, That's through that not continued of really pre But strength you're going all advertising it's to in yet. never really even just on to reflect and COVID as the the comments. does numbers, game actually for the sort core of and in

Rob Weisbord

this well at as It's be attack that system. to new our Dan, able geo-target. launch look So, analyst yield machine as that learning higher with app dedicated as management as have system a will AI extracting will will an to with per game well yields

then you are the we target be and in in those by free be dollars know, Beginning through multiple play. the the well and to ads able specific be the in play DMAs, capture some free to content zeroing opportunities. of to as political dollar RSNs this well during able branded to DMAs launching on year, able season, our sponsoring gamification, as geos will capture more to as will political be we Interactive So, as Division this will will

to numerous is the there stuff. unlock with that that in RSNs So, were opportunities

Dan Kurnos

that's it, super Got helpful.

housekeeping, in I'll political questions. a everyone core let follow Lucy, the QX? else Just what's

Lucy Rutishauser

of total the QX for million this company. we year, had got $X

Dan Kurnos

Got it. Thanks very much guys. Perfect.

Operator

Our question proceed. from of next is Please Wolfe Research. Janedis John

John Janedis

baseball you about as those things impact consent to on those teams something season and getting morning. Thanks, prior Maybe the could then, consumer. of talk we or terms talk get to direct related no news just process the parallel paths get a And can done on quick to wanted Dan's distributors I clarify, timing? level YouTube Chris, with confidence topic, and you season? question, into do Hulu, need in and you your maybe good doing front a from follow-up the guess on related any leagues I distributors, starting deeper of are about the to and it carriage to to can just on new about

Chris Ripley

Sure. Thanks, John.

to the with have direct We past distributors already launch the consumer. to

the that's on So, question. that answer

of direct really our teams. majority for the rights have We consumer vast to

with product the to of discussions teens leagues the make those and in enhancing even are some on We the better. rights

on what's plan thing see on can that's if The now. the don't right carriage, don't around is mean on threat tell first of of we XXXX. going distributor these a any Then I specific status your will return. So the discussions. only to I one will question look, time half in to say distributors that comment timing. launch is The

John Janedis

you Thank much. right. All very

Operator

you. Thank

proceed. of Please Cahall Wells Our next is question from Fargo. Steven

Steven Cahall

Thanks.

into next? more discussion bit what you ongoing. little DISH Chris. So, think I is could maybe happens just of the us dig a RSN, tell Maybe probably a just little

commentary curious think low you them? come just So, where guidance you Then RSN with at if might your some with bit I thinking helpful. debt it think could those but the end I'm accept is it or you're could of a talk mean DISH more maybe you about are would scenarios, include year, of kind in Lucy, this coming very in? be of know the would agreement if you we about renegotiation what-if an buyback didn't these the helpful of little about if just if liquidity Then, that scenarios. just how be a I

dislocation. You year of opportunistic price last certainly to share the take advantage were

about uses think being it going potential in recapitalization, maybe of As station of the is broadcast diamond use flow cash? a on cash opportunistic help you is end us Thanks. market reduction, think forward, about maybe debt a participating broadcast just M&A

Lucy Rutishauser

one. other talk Chris can that don't first the Why do and to I then question

increase the we've about investments, return. the equity also value all years the the on we cash free for value within company STG of reinvesting diamond been you're the haven't or been what really changed returns. if uses companies How flow It's particularly companies, about been in do doesn't So from side, on matter sided which do stack it side. STG core has that the has de-lever? the we how and positions, equity talking weather about it's -- long-term It's funded really

strengthening still those flow balance long to cash company the making the the to sure the So, free the and that de-levering, are for term. continue sheet, all reinvesting returns, of grow on equity in we're things table, with

Chris Ripley

with success reasons, I On our obvious had of public have we DISH, in but renegotiating we will really your the note we for question on DISH come that think related Great. with offer. suite with tremendous MVPDs programing I be entire traditional can't to the when

structures achieve with discussions open discussions active front. proactive capital again to are with being growth stakeholders, can't Frontier In have of with that fact, in and under what structure, as with our that on successful traditional large indeed course, for future circumstance, to our shareholder note ball, will us our capital very will predict. have we respect the entity. segment strategy them all constituency our for maximizing we're say a crystal has but that that It mentioned, with been We're We help relates a we a time been us returns, Lucy MVPDs. it that balance optimizing filed don't cost to Then happen, its of opportunities, successful pivotal other we I Diamond which be goals, funding strengthening a including of will sheet, the capital, and for de-levering our bankruptcy. who and of will

Steven Cahall

Thanks for the color.

Operator

Thank you.

is proceed. question of David next Our Stanley. Morgan from Hamburger Please

David Hamburger

contracts two If in about a and talk will how the help talked costs be been some maybe could, forward give year I Thanks. stations you has can I about, if and questions. your to helps with cash recently those your question cost bit us you've how programing contracts, good dimension how and know can like of for contracts negotiated? you renegotiating a little few and equity you those the with may. attenuate second this be will giving you Hi, that the teams Can us a many renewed what morning. expectation Then escalating savings the look you I associated here

Chris Ripley

teams a for we are renewals, When have specifically year, go sort teams don't have reasons, Last with obviously teams say come Marlins we expirations. of Sure. year, we've the Brewers, which of over every confidentiality we this few spread teams and there months, but of a XX into had portfolio got up. up, and renewed XX handful contract a were that the year successfully a those in total coming we

you've teams with. got deal got every that year You've to handful

explicit sort exist through really our is took normal of course portfolio and goals you business So more it's and variabilize roll of it to the the when as in of cost already over we one structure. the

no So which it when they MLB large the will to just variable big of total takes always of stake the is of into of projected will depending in on an in the be a side, that, And how negotiate income anchor stake be and rights you. thumb rights a assemble much RSN. renewal on rights and stakes variable the of minority terms Besides most portion the how want teams the is the what we performance our I we and then fee minority for it then determines the how out rule go give stakes RSN try of depending that there makes on can ownership with specifically total fees are fee of fixed. and versus

which of interest into really does confidentiality I I just for specific really vary in but with getting fees a in we I structure overall do what's that cost without do strategy. the more see rights and terms on relying sort the on can't that, really give terms can't to escalation it aligns of our specifics downwards up can happening think overall of, that they're terms so of head perspective. and like teams. detail mid-single we're expect going And reasons, in contract more And of you in you annual we numbers at to digits an than say It that

David Hamburger

I there rebates I outcome guidance we for the now. Okay, relative driven down of at you better call. Can by in expected first for quarter, Diamond. year. talk wouldn't It's that. quarter fourth driving the at come second the of about with down little a midpoint I but would kind in to thanks. XQ, My year the earnings you regard what's the provided was the for guidance expected was if guidance question guide EBITDA, know see anticipate, better look if is to The bit

a context, and higher but of in So you flows, $XXX and Diamond and incremental little at quarter. and and driving into of, could $XXX maybe also XXX I'm you the quarter the interest you're a context reduction I And as distributors, guide the wondering cadence the quarter, associated cost to put in with of million what's growth in plus cash at remainder are rebates first 'XX? the talk of rights year liquidity of in billion last going the you mentioned sports payments the for the know bit initiatives. mentioned cash you in could this look about million that down, expenses Diamond Lucy can there was

Lucy Rutishauser

Okay.

questions here. three So

Let going balance capital that December in got working the distributor me do cash interest, to of the the be from usage the and QX rebates on paid we right and they the to EBITDA, first so first, the walk points we the there bond is all changes. is you've main hit semi-annual cash paid quarter had rest rebates that the

So you've for part. the most

the change points all the in So on key cash. you've hit

debt economy still So assumptions of the acknowledging look right availability current to and cash we but fund rates the is out on a based assumptions based revolver churn and and that our uncertainty there and with XX believe has Diamond months, on the lot cetera all COVID again we sufficient et services. its when

all app out to development app. the of into didn't the as is services this up multiple then So have the new right, the were and the such incremental standing replacement so on up Encompass two get as inflation also the the it you made your made new there should new be It's going fine initiatives the gamification of of features, such there app our regular facility that things. in which that of is question up and and of of OpEx new $XXX old million expenses facilities,

well as our same store, services the we rebranding services the build the did that As that is continuing the own we're transition to costs around Disney we time, for name, duplication for model out and of also are the all as new pay our through year. but running at new there Fox

that primarily $XXX So in what's million. that's

for services million, it a the then your for year I development $XX of the first question that the $XX EBITDA. app to midpoint part. was And so, cost the for think million either next were next come duplication of because about the of does not when the rebrand the And good back it, on on

is you whether the last on it as right that, on into still during of don't there and up happen the now or of as it know, said was YouTube running whether will was So advertising. range, top we outcomes Hulu that affect end we that it whether range churn, carriage, quarter, were a on could have the Dish, year,

three part those, the down, increased all, top important lower so for think the of still the taken the is And end range here not at we've I of but year. with there is end range the has the

at take $XXX from. everybody $XXX more so should the So and away million I the we to think piece low that the end went from that's important

David Hamburger

thank Okay, you.

Operator

you. Thank

Our Watts next Aaron question is of Please proceed. Deutsche Bank. from

Aaron Watts

for trending in are things me flattish having everyone. overall? much turning to encouraging how in XQ Thanks Hi, station seems said, the better quick on. core last of a the corner. at April core looking versus believe is the for kind Lucy, year it follow-up like on you hear I advertising quarter One first

Chris Ripley

why April. is slightly we're and against optimistic as and which going benchmark. then up at business place in the are XXXX, will We're has see off our month-on-month being it's But benefit think more a you cautiously from and so May traveling businesses that's we're gauge again, opening will looking where encouraging and is strong started we robust down to economy. see increasing

Rob Weisbord

gives add that of been very shortage, just we've the all very with chip strong And very, only QX others QX. have pause a for and I we've would very as core little is to bit said, the the categories strong Here, look very, very, happy and but front. thing been us I that, advertising seen in on what

time the bounce So we're in just, it's overall. back been a great

Chris Ripley

And been portfolio our what unlock It's dollars XX last with is, the now and significant able asking months. goal starts our in spend portfolio, those we're to the great in industry to for a shape way. gaming with happening have we're capture

Aaron Watts

helpful. Okay, that's great,

RSNs question, the churn on here in the Cox year stations start relatedly subscriber renewal. Second for any change trends the both material the in to and underlying the in

You the mentioned release. in

confirm broadcast across extended been new agreements carried merely the and platform, with to the be Just the wanted that RSN deal? coterminous previously to were their had that

Chris Ripley

Sure.

in we trends in see subscriber a all material. improvement that the Nothing So quarter. did slight last

So outlook same. the our remains

on on then of And sense. date. our arrangement up the we're did all with our content Fox for broadcast think of digits digits mid-single decline and sync the same outcome we and did In expiration Fox high-single I deal, the very mean and the pleased terms under of deal,

Aaron Watts

the streaming Chris, I wrong and still all teams at leaves discussions to correct just on the that's just offering any NBA to around is NHL if if streaming offering some of this great. Okay, points? me, and comments rights on you with negotiate those for what up on that one but on And are and last really MLB NHL this could or consumer current turn league those direct the those right. to and the the I NBA your I deal rates of understanding side, but a me touched and believe right one sports your I'm When home back and streaming the their either agreements for level look that with earlier. renewal wanted on know those to like extending there, my clarify

Chris Ripley

remember. of I Aaron, you know have in what right you terms it, Yes.

of deals So end naturally the this NHL NBA expire the season. at and

the and we actually to because wanted fortuitous were better. we to enhance So expand the was it very make even product rates getting

and mentioned renewal we those as are ongoing speak. I discussions As

Aaron Watts

for time. you thank the Okay,

Operator

next question of Lance from proceed. Our Cowen. Vitanza Please is

Lance Vitanza

taking I Hi on questions for congrats quarter. two I could. the guys, if and the thanks questions have

what are the I potential bonds of say Hulu your you'd upside on Dish, guidance what trading to the guidance or improvement outcomes, range the mentioned versus pretty I it YouTube. first The you Lucy. should of at look is contemplate have I guidance contingent low low question does low is, extent to to My did. to agree end end this an the return focus mean is where I guidance for know I that Diamond. and the the extent I of should of the seems guidance. objectively, think the the prior part as obvious given on end the of be new upon your guidance of

Lucy Rutishauser

Yes.

So talked this well. call. as last we our as about on Lance

going well would as to a have range the would end our, in but of and low into, low no as and that subscriber advertising the low-end carriage be incorporate also So I'm advertising the get churn there subscriber end, upside but current amount which some returns would not is for ranges the churn on range return.

Lance Vitanza

clear interest Dish, Hulu still that just you're Okay the is you're YouTube, so though, of your what return even but expense? I'm covering saying so without and

Lucy Rutishauser

Correct.

Lance Vitanza

you other month. I you respect like last this give with but I app during does mean, is sports, on eventually? a who know new is did Sinclair to drive App had bit help to around versus to the Chris play into haven't and the Bally's it's app the Okay. a My extent remind early the Bally's little know app, but, revenue your is feedback Sinclair that it us us color what helping it bit a question what the runs to launched versus or it how could been call, I app, could I app branded chance little and the but more you get is has Valley with

Chris Ripley

launched literally. was so Sure, app the

and a think two branded seeing ago, month, Valley it last digital operations, Valley's Sinclair and our just and sports on it feedback oversees it I'll who let asset, was I a app, not talk what weeks Rob, the more it's asset. we're is about the but is

think You can of.

a gone amazingly confusion rebrand up Just sports the rights out well. to brand any it to has potential to every to our license and and for platform on to sort Valley some of exploit brand is is other that people have even we clear sense

box that's over people switch it's our well of that with when do to you're just a amazing frankly product improvement it main better. of that we networks. and all That's known short from think an We've that killed out. looks stakeholders. and the the I just, on the the rebrand. team quite think period so a And time we've to dealing much gotten really as within it The product compliments brand been in put

company don't, to sports, as Now casino Valley necessarily they they're the objective. that was the connecting that not and

the extension and is objective that. app an So achieved of

been So under the it's over now improving and of manage It's to Sports launched. carriage app. to that Fox from complex a rights the GO. convert it's enhancing features technical feed successfully big the a pull all It about very was and in

relates way over in impressions the under Rob targeted. RSNs and large a it we're bunch to app turn I'll to for about opportunity, a monetized GO so, the even Sports weren't which FOX just you represents And they economic opportunity of also asked it as it economic

values for connect build launch shortly. Sinclair way. does then business And will what sports it So that their in the which promote brand really bargain over is betting to it big app which Valley's does a and for

a to the and Rob there it some So I'll for over is feedback. relationship very really turn of symbiotic it

Rob Weisbord

Lance. Yes.

our So Marquees viewers in app job, we and spent a great for on this to focus a feedback building product improvements, [ph] full Fox trying XX app, bit the months the little Sports team was did as two. a long

geo voice targeted and our Chris like Bally it's So to each from it was Bally in needed that dedicated more app through excited had unlock a we that we're few Sports not you seamlessly app and went and a is to views which in single just digital update will go find sports, It video Fox short selling past days, Sports, a update. impression every Sports share over the Group, views Sports sold unlock be modern million was and impression have X.X that Sinclair assistance it that truly those we've of we are only able to not indicated value. going from video of Fox to already have an a team

unlock Our the [ph] interactive team, which led is by JR will gamification.

So that along itself. able to app brand there's numerous the of ways with the we'll monetize be Bally solidify sports

Lance Vitanza

guys. taking for questions the Thanks

Operator

this I back to gentlemen like to turn ends closing question-and-answer and would Ladies session. Chris our And for the you. call comments. Thank Ripley

Chris Ripley

joining today. all for us you Thank

or please information hesitate more questions, additional us to call. need should you If give don't a have

Operator

conference. concludes This today's

at may your lines this You your for disconnect participation. time. Thank you

Sinclair Broadcast (SBGI) 5 May 212021 Q1 Earnings call transcript