Sinclair Anticipates Q4 2024 Local Media Income to Fall Slightly Short of Estimates
Sinclair, Inc., a leading media company, has released its preliminary unaudited results for the fourth quarter of 2024. The results provide a glimpse into the changing landscape of the local TV advertising market.
The preliminary results do not include detailed breakdowns of other media revenue, political advertising revenue, distribution revenue, non-political ad revenue, or potential revisions that may be made after the audit. However, they do indicate a weakening ad market for core (nonpolitical) advertising.
Sinclair expects its Local Media segment media revenues to be between $931 million and $933 million for the three months ended Dec. 31, 2024. This is slightly lower than the previously disclosed guidance of $939 million to $940 million. The company's distribution revenue is expected to be higher than anticipated, at between $392 million and $393 million, while its preliminary Local Media segment combined media programming and production expenses, media selling, general, and administrative expenses are projected to be between $580 million and $582 million, lower than the previously disclosed guidance of $589 million to $590 million.
The preliminary Local Media segment non-political ad revenue suggests a decline in the ad market. Projections for 2025 local broadcast-TV ad revenue also point to a decline, with core over-the-air (OTA) local TV ad revenue expected to drop by 4.2% to $14.3 billion in 2025.
This downward trend aligns with broader trends in media consumption and ad spend shifts. BIA Advisory Services projects total local advertising revenue in the U.S. to be approximately $169 billion in 2025, reflecting a 2.4% decrease year-over-year. Local broadcast TV, including both traditional and connected TV components, is expected to make up a portion of this total.
However, the shift towards digital, connected TV, and streaming ad revenues is significant. Over-the-top (OTT) local connected TV ad spend is projected to increase by 29% to $3.3 billion in 2025. This reflects a major industry shift away from traditional local broadcast ad spending.
Sinclair is scheduled to report its Q4 2024 earnings results at 4 p.m. ET on Wednesday, Feb. 26, 2025. The earnings call will provide more detailed information about the company's financial performance and any potential revisions to the preliminary results.
In addition to its financial announcements, Sinclair has also announced new debt offerings. The details of these offerings have not been disclosed at this time. The company's political advertising revenue is expected to be approximately $203 million.
As the local TV advertising market evolves, companies like Sinclair will need to adapt to these changing trends to maintain their competitive edge. The preliminary Q4 2024 results provide a snapshot of this ongoing evolution.
- Sinclair, Inc., a media company, anticipates its Local Media segment non-political ad revenue for the fourth quarter of 2024 to indicate a decline in the ad market.
- The preliminary results suggest a weakening ad market for core advertising, as media revenues are projected to be slightly lower than earlier expectations.
- The company's Q4 2024 preliminary results do not include detailed breakdowns of political advertising revenue, but they do suggest a potential decline in the non-political ad market.
- In alignment with broader trends, the shift towards digital, connected TV, and streaming ad revenues is significant, with over-the-top (OTT) local connected TV ad spend expected to increase by 29% in 2025.
- As the local TV advertising market evolves, media companies like Sinclair will need to adapt to these changes to maintain their competitive edge, as the preliminary Q4 2024 results provide a snapshot of this ongoing evolution.
