Sinclair Broadcast Group reported today an operating loss of $4.18 billion in its Q3 financial results announcement.
Sinclair took a major hit from the loss of distribution deals for its regional sports networks, which included both Hulu with Live TV and YouTube TV dropping the channels. The company also cited COVID-19 and “shifting consumer behaviors” as affecting its sports segment.
While Sinclair saw an operating loss, revenue for the company rose 37%. Sinclair listed the acquisition of the 21 RSNs in 2019 as a factor in revenue gains, along with political advertising revenue.
“Driven by stronger than expected political and sports advertising revenue, and stringent cost control measures during the pandemic, Sinclair’s results for the quarter, excluding the impairment, exceeded our expectations and guidance,” commented Chris Ripley, Sinclair’s President and Chief Executive Officer.
It was recently reported that Sinclair is looking at options for restructuring, which could affect those RSNs, though Sinclair has not offered any additional information about those plans.
Ripley shared that the company is optimistic about the months and years ahead, noting some key drivers – the beginning of baseball season in spring 2021, the rollout of NextGen TV by the end of 2021, and the launch of Sinclair’s upcoming news service The National Desk which will launch in early 2021.