Depreciation, a impairment charge, “assumed in the Local Sports segment related to the trade fund and intangible assets of finite life, and $13 million non-recurring transaction costs, COVID, legal, litigation and regulatory costs”. said the corporation.
Sports networks lost agreements with two virtual distributors, YouTube TV and Hulu Live TV, which combined accounted for 10% of gross sports network distribution revenue. Inclair estimated that a deferred tax gains advantages of $1 billion as a result of the deterioration.
The effects of Covid-19 were also blamed for affecting “major advertising trends,” although the company said it saw some improvement in those trends in the quarter. In addition, Sinclair executives said in a call with analysts who expected the market to recover when the pandemic subsides.
“We believe things will get back to normal when COVID disappears,” chief executive Christopher Ripley said. “We do not believe that COVID has caused a basic structural replacement in the (advertising) market. “
This year has not been entirely negative for Sinclair, one of the largest broadcaster teams in the country. The conservative-trend organization said it had noticed “stronger-than-expected” political advertising revenue in the midst of an election season that recorded record grades. fundraising and spending through presidential campaigns, some voting measures and some other candidates.
In total, Sinclair reported that political advertising revenue reached $109 million in the quarter, more than 18 times the same era in 2019. And while political spending in 2021 is expected to go back without a presidential campaign, Ripley said, “Who knows?See how long it takes to count the votes for the president.
Sinclair owns or operates 190 stations across the country, mainly in small and medium markets. It also owns or manages 23 regional sports channels, adding parts of the New York Yankees’ YES network and the new Chicago Cubs Marquee Network, as well as Tennis Channel.
Revenue for the quarter increased by 37% to $1. 54 billion, thanks in component to sports networks, which it acquired largely in August 2019 after Disney had to sell them as a component of its Fox acquisition.
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