Sinclair Broadcast Group, Inc. Price & Performance (SBGI)

Such factors have been set forth in the company's most recent reports as filed with the SEC and included in our fourth quarter earnings release. The company undertakes no obligation to update these forward looking statements. Included on the call will be a discussion of non GAAP financial measures, specifically adjusted EBITDA. Measures are not formulated in accordance with GAAP, are not meant to replace GAAP measurements, and may differ from other companies' uses or formulations. Further discussions and reconciliations of the company's non GAAP financial measures to comparable GAAP financial measures can be found on our website. Let me now turn the call over to Chris Ripley, Good afternoon, everyone, and thank you for joining us. I wanted to start with a bit of breaking news regarding NextGen Broadcast. Earlier today, the National Association of Broadcasters filed a petition with the FCC which asks the commission for a roadmap to sunset ATSC one point zero in order to facilitate a full transition ATSC three point zero, which would include transitioning the top 55 DMAs to three point zero within three years, which covers 70% of the country. It also asks for the remaining markets to be converted to three point zero within five As an industry, we believe that such an orderly transition will benefit the nation's consumers, by offering significant improvements in picture quality, audio clarity, interactive features and public safety capabilities.

It would also support the long term viability and global competitiveness of the broadcast industry by making significantly more spectrum available for additional content, and data casting. We look forward to working with the NAB the industry, [indiscernible] and the Trump administration as the industry continues to make significant on next gen broadcast and as we move towards a more equal competitive playing field for broadcast Turning to Slide three, I wanted to highlight what was an active and successful year for Sinclair in 2024 Sinclair. Once again, we reported what we believe will be the strongest core advertising In addition, we announced record breaking political advertising revenues of $4.00 $5,000,000 doubling the twenty twenty six presidential year results. We also completed a successful year of distribution and network affiliation agreements with over 5% net retransmission [indiscernible] year over year in 2024. Our fourth quarter results were an illustration of this progress as our adjusted EBITDA of $330,000,000 in the quarter came in $5,000,000 above the high end of our guidance range as announced last November. In addition, as discussed last quarter, we launched several top rated sports related podcasts just prior to the football season and they continue to perform extremely well with several new local and national podcasts being launched in the coming weeks.

Also launched our Tennis Channel D2C product, which now offers our premium linear channel content on a streaming platform for the first time ever. On the venture side of the business, we received $2.00 $9,000,000 in cash in 2024 as we continue to reposition our minority investment portfolio towards more majority owned assets. Lastly, this month we substantially completed a comprehensive refinancing of our balance which Lucy will provide an update on a bit later. Turning to Slide four, I wanted to take a quick moment to reflect on our equity performance over the past two years. As you can see in the graph, our share price has outperformed in both 2024 as well as for the two year period beginning in 2023. For this sector, that has been had numerous misperceptions and market overreactions we're proud of our relative outperformance over the past two years. We also note recent public statements and M and A activity from companies such as [indiscernible] Skydance and Comcast that are focused on the broadcast business as a key corporate asset going forward. On Slide five, we highlight certain of our key consolidated financial metrics for the year in comparison to our most recent guidance provided on our November earnings call.

Distribution revenue came in above our grew significantly in the fourth quarter year over year. Reflective of multiple distribution and network affiliation agreement renewals as well as subscriber trends that significantly or sorry that slightly exceeded our forecast. Core revenues came in slightly below our However, media expenses were favorable to our forecast driven largely by compensation and sales related costs.

As a result, we exceeded our adjusted EBITDA guidance range for the quarter.

Lastly, our capital expenditures were also favorable to our forecast with roughly half of the variance due to timing and half permanent savings. Turning to Slide six, our ventures portfolio continues to transform away as we look to position the portfolio in more majority owned assets over time. Total cash inflows during 2024 totaled $2.00 9,000,000 including $47,000,000 in the fourth quarter. Ventures had $4.00 $6,000,000 of cash at year end and after our comprehensive refinancing of SPG, we are now able to carefully examine the potential uses for the cash balance at Ventures. We continue to examine outside investments for ventures that would we would be able to consolidate our results as well as potential for returning a portion of the cash to shareholders over time be that a share buyback authorization or other shareholder friendly actions. Lucy will provide more detailed breakdown of the business unit financials in a bit. But first, I wanted to provide an update on the Pay TV great rebundling we've talked about in recent quarters. Before I turn it over to Rob, for a broadcast update. On Slide seven, we turn to the Charter Pay TV bundle example once again. The streaming services now included in Charter's Sinclair Plus pay TV package have seen another $3 in incremental value as several of the streaming Charter subscribers now enjoy more than $81 per month worth of streaming services, which equates to a 59% discount versus YouTube TV and a 66% discount in net effective rate for Pay TV over the past twelve months when taking into account those streaming services.

Notably, even though Charter is just now launching an aggressive marketing campaign to highlight this redialing, the company is already seeing positive impacts in its business. As Spectrum reported its lowest net subscriber loss figure in almost three years. We continue to highlight the tremendous value available in the Pay TV bundle. With that said, let me now turn it over to Rob to continue the discussion about our broadcast business.

Thanks, Chris, and good afternoon, everyone. Turning to Slide eight. Several weeks ago, we made a significant marketing announcement by introducing AMP sales and marketing solutions and AMP Media, just rebranding of our internal sales and content [indiscernible] is redefining how we connect with our customers and audience. [indiscernible] The rebranding is designed to do several things. First, we want to highlight the fact that we are more than a broadcast TV We also have a strong digital product highly ranked podcast and social verticals. We have found relevancy in all platforms. We want our sales forces to be focused on offering to the to advertisers to more effectively engage audiences wherever they may be however they want to receive our content. In addition, the strategic evolution of our business will involve a revamping of our internal processes to build stronger sales teams with cutting edge resources. This is part of our transformation strategy to migrate from a traditional broadcast company to a multi platform media and we cannot be more excited of our potential and amplifying what we do. On Slide nine, had a very successful 2024 from a distributions perspective. We successfully renewed retransmission consent agreements representing 80% of our traditional Bit four subscriber base.

It is worth mentioning that with respect to the remaining 20%, we remain in active negotiations with this MVPD and our fourth quarter results and first quarter guidance reflect accruals based on the current state of negotiation. Which continued to progress. We also completed a long term renewal with NBC our last network affiliation agreement renewal in this [indiscernible] Combined these successful renewals, gives us greatly enhanced visibility in both our retransmission revenues as well as our network programming fees for the next several years. Notably, since we are frequently asked about our mid single digit two year CAGR, for net retrans revenue guidance it is worth noting that our 2024 net retrans revenues grew by more than 5% over 2023. Following our renewals, we have even greater visibility and reiterate our previously stated net retrans guidance. Turning to Slide 10, I just wanted to put a quick bug As we discussed in our preliminary numbers on our last call, we recorded a record $4.00 $5,000,000 of political revenues in 2024. Not only was the full year at record for Sinclair, but we also broke out record in all four quarters of the year.

Excluding the impact of the Georgia Senate runoff in 2020. The $4,000,000 for full year results representing doubling over 2016 levels and a 16% increase over the 2023 Georgia runoff total. We are well positioned for what we believe will be highly in both the twenty twenty six midterm elections and the dual open presidential election in 2028. Let me turn it back over to Chris to provide a couple of our industry updates.

Thanks, Rob. On Slide 11, I wanted to turn back to next gen broadcast to briefly discuss one of the more exciting industry developments for the technology. Last month, we announced a joint venture with Scripps, Gray and Nexstar to combine our commercial next gen broadcast efforts under Edge Beam Wireless. This joint venture allows us to create a nationwide spectrum footprint that no individual broadcaster could achieve on its own.

In fact, Edge Beam will start with ATSC three point zero national coverage of approximately two thirds of U. S. Households.

Once the stations of all four partners are converted, we will be able to reach approximately 98% of all U. S. Households. We anticipate even more broadcasters will partner with Edge Beam to deliver truly nationwide services of our expansive, reliable and secure wide area data cost effective price points for use cases such as streaming video offload, automotive connectivity services and precision navigation among many other potential use cases. We view this announcement as a groundbreaking development for next gen broadcast monetization as well as for the broader broadcast industry and we're very excited about the potential going forward. Speaking of excitement, the industry is optimistic on the political changes in Washington. Specifically at the FCC with Chairman Carr at the helm. Turning to Slide 12, we are hopeful that many of the woefully outdated FCC regulations that have hampered growth in the broadcast industry over the recent decades will be revisited if not eliminated in the coming months.

While the timing and extent of these changes obviously remain to be seen, the industry is hopeful that most of the outdated ownership rules impacting the sector will be modified to allow sensible M and A and portfolio rationalization. Addition, we will be lobbying for other issues impacting the sector, particularly the rules that prohibit broadcast from negotiating directly with virtual MVPDs. As well as the rules that will allow the industry to wrap which will help accelerate wide adoption of next gen broadcast products and services as evidenced by the industry's filing earlier today. On Slide 13, I wanted to take a moment to highlight our 2024 Sinclair Cares community impact. During the year, we donated more than $7,000,000 of on air promotion time and supported over 400 different charitable organizations. In addition to raising over $24,000,000 for those charities, we collected more than 4,000,000 pounds of food, provided over 3,500,000 meals collected over 300,000 toys, provided over a 250,000 diapers and donated almost 6,300 points of blood. I could not be more prouder of our viewers advertisers, partners and employees that helped drive this significant community impact across our footprint every single year. Now let me turn it over to Lucy to discuss our financial results in more detail as well as our successful refinancing.

Thanks, Chris, and good afternoon, everyone. Turning to Slide 14, I want to highlight our recent comprehensive balance sheet refinancing. The refinancing is the result of months of hard work by many people but I want to specifically thank our debt holders and lenders for their support during this process. The centerpiece of our refinancing was a $1,000,000,004.03 0 eight year, eight point eight percent first out first lien note. The broader refinancing not only address our 01/2026 maturity, but also extended the maturities of certain of our other debt such that our weighted average maturity is now over six point five years. Pro form a for the completed transactions, our first out first lien net debt leverage is below two times. With first lien net leverage at 4.2 times as of year end twenty twenty four. Our balance sheet is now not only the industry's longest in terms of maturity profile, but more importantly, well positions us to participate in what we hope will be a period of renewed M and A activity within the sector. Turning to Slide 15, you can see the transformation of our balance sheet and the extended maturities across our various debt tranches over the coming years.

With our closest meaningful maturity now not until the end of twenty twenty nine. Slide 16 shows our year end 2024 cap table and our pro form a cap table following the refinancing. On Slide 17, we highlight our fourth I won't spend too much time here as Chris touched on most of the key drivers in his commentary, relative to our November guidance But I did want to highlight that adjusted EBITDA beat our guidance range by approximately $5,000,000 at the high end of the range. That was due to stronger distribution revenue while modestly lower subscriber churn as well as lower immediate expenses on compensation and sales related costs partially offset by the slightly softer poor advertising in certain categories. On Slide 18, our consolidated media revenue results in the quarter were up 21% compared to 2023, driven by growth in political and distribution revenues while core advertising was down due to the political crowd out effect. Turning to Slide 19. Adjusted EBITDA grew by 83% year over year in the fourth quarter driven by higher political and which more than offset a modest increase in media expenses, a associated with the additional incremental media revenues.

On Slide 20, we present our fourth quarter finance I do want to remind everyone that we preannounced our local media results on '27 prior to the launch of our refinancing. As compared to the fourth quarter of twenty twenty three, distribution revenues were up 5% driven by our contract renewal cycle in 2024. Core advertising declined 9% year over year primarily on political crowd out as well as some modest softness in several macro economic sensitive categories late in the quarter. However, Local Media adjusted EBITDA was within our guidance range for the quarter as a result of the better distribution revenues and favorable media expenses. Turning to Tennis Channel results Total revenues were up 6% year over year slightly above our expectations due to digital advertising revenues, which more than doubled.

Due in large part to the dramatically expanded distribution of Tennis Channel two, which is formerly T2. Adjusted EBITDA for Tennis Channel also came in above our forecast due primarily to lower production, marketing and G and A expenses. When I look back on our consolidated full year 2024 performance, as compared to our original guidance presented in February of last here. We overachieved on expense items across the board. Notably, as seen on Slide 21, consolidated media expenses came in $38,000,000 better than the midpoint of that original full year guide. While our non media expenses beat our original guide by approximately 10,000,000 and CapEx of $84,000,000 for the year is well below our original midpoint guide of $114,000,000 As we stated throughout 2024, this was a company wide focus. On managing costs, and we thank all of our employees for embracing and continuing to execute in this regard. Turning to Slide '22, we introduced our first quarter twenty twenty five guidance. We expect first quarter media revenues to be lower by 2% to 4% Year over year on a consolidated basis, due primarily to significantly lower political revenues in Elanie Lex year as well as some continued softness in a few core advertising categories.

We anticipate core advertising revenue to be down by approximately 3% at the midpoint of our guidance range while distribution revenues are expected to be 4% higher year over year.

Our consolidated adjusted EBITDA is expected to be within a range of $90,000,000 to $102,000,000 dollars versus $139,000,000 in the year ago period.

Again impacted by the absence of material political revenues in this off cycle election year.

Net cash interest expense of $143,000,000 includes $75,000,000 of non recurring fees and expenses associated with the refinancing that we do not anticipate being able to capitalize. Again, that $75,000,000 is non recurring.

Slide 23 contains our full year expense guidance. Which includes a modest 2% increase in media programming, production and SG and A expenses year over year. CapEx, while flattish to twenty twenty four is levels, would be declining if not for a carryover from 2024.

We expect approximately $28,000,000 in increased net cash interest expense in 2025 Based on current interest rates, and reflecting the recent refinancing and excluding the non recurring $75,000,000 of Q1 refinancing fees and expenses.

We are forecasting cash tax payments in 2025 of $216,000,000 at the midpoint of guidance.

And that's largely driven by approximately $170,000,000 in forecasted cash tax payments associated with Diamond's emergence from Chapter 11 protection in early January. I'll now turn it back to Chris for some closing remarks before we open it up Q and A. As you've seen, it was a very active and successful year for Sinclair on many fronts.

Turning to Slide 24 to summarize the year in review.

We have seen continued strength in the broadcast TV business model. 93 of the top 100 most watched telecasts in 2024 were on broadcast TV. And two point five weeks ago, Fox delivered the most watched telecast in the history of American television and Super Bowl fifty nine, with 127,700,000 total viewers besting the record previously held by last year's Super Bowl. In fact, to further highlight the power of broadcast television, Nielsen recently reported that our telecasts of the Portland Trail Blazers led the NBA in audience growth year over year through the All Star break. With a 68% growth rate as our broadcast signals now cover 100% of the Portland market as opposed to the team's prior telecasts on Root Sports. We also benefited from political record political revenues 2024 of $4.00 5,000,000 a 16% over our pre run off 2020 revenues and a doubling over 2016 political revenues. We anticipate continued political revenue strength in 2026 with highly competitive congressional rates and races and control of Congress hanging in the balance. In addition to 2028, which will see dual open presidential primaries for only the second time since February. Following some softness in late in the year and in early January around specific categories.

We are confident that with our multi platform content strategy, effective yield management and sales optimization processes, we will continue to drive best in industry growth in core revenues as we have consistently done so over the past several quarters. In addition, our distribution team had a very busy and successful 2024 which greatly enhanced our visibility on our net retransmission revenues for the next several years. Thanks to our recent agreements with MVPDs as well as renewing our last [indiscernible] affiliation agreement until 2026. This led to more than 5% growth for the full year. Looking forward, we are seeing regulatory optimism for the first time in several years with hopeful expectations for loosening M and A restrictions and next gen spectrum relief to sunset ATSC one point zero. And lastly, If we do usher in a new age of M and A opportunities, our balance sheet is now well prepared for it. With the longest maturity profile in the industry, a weighted average of over six point five years following our recent refinancing. While our financial priority for the Local Media segment remains delevering our balance sheet, After our comprehensive refinancing, we now are able to carefully explore the potential uses for cash balances at Ventures.

We continue to examine outside investments that we would be able to consolidate in our results as well as the potential for returning a portion of the cash to shareholders over time. Be that a share buyback authorization or other shareholder friendly actions.

We will continue to keep the investment community updated on this topic. [indiscernible] Thank you very much for joining us today and your interest in Sinclair. Rob, Lucy and I will now take your questions.

Thank you. At this time, we will be conducting a question and answer session. First question comes from Stephen Kehoe with Wells Fargo. Please proceed.

This is Deborah on for Steve.

Our question is, there's a lot of optimism that the new FCC could act to relax local station ownership rules.

Should we think of Sinclair as more of a buyer or more of a seller if there's room for consolidation? And if a buyer, how much of the cash adventures would you be willing to commit for dry powder versus other investments or returns to shareholders.

Great. Thanks for the question. So look, as I mentioned in my prepared remarks, we are very optimistic as I think the rest of the industry is for deregulation. The timing and degree of which will have to be seen.

But as I think about M and A, there are three buckets that of opportunities that we are considering. One is the first bucket, I would characterize as sort of cleanup. Buying in our GSAs for instance, that would be immediately accretive to both leverage and our valuation produce a bunch of synergies and require minimal cash out the door. The second bucket is station swaps. That's where say us and another large broadcast would trade stations in overlap markets. And those can be done with low to no cash as well and would generate a significant amount of synergies So again, very accretive to both our valuation and to our leverage multiples. And then the third bucket is large scale M and A. The good news is I think all three of those opportunities are in play currently. Even with the rules as they are currently This administration, I think, will will follow the rules as drafted. That was not the case in the prior administration. So we're looking forward to just taking advantage of the rules as they exist today. And as I said, we're hopeful that there will be further loosening in the future. But I guess my message here today is that just with what there's a lot that can be done And so we're very excited about that.

In terms of whether we would be a buyer or seller, We're either. We're here to maximize value for the shareholders. And so we're flexible. And certainly, you can see that in the example of station swaps where we'd be both a buyer and seller at the same time.

And then your reference to venture cash, as I mentioned in the remarks, now that we have done the comprehensive refinancing and STG has the best balance sheet in the business We are re examining those cash balances and we are looking for new investments for ventures, but we're also looking at potential shareholder returns as well, like I mentioned. Needing to use that for M and A, I don't think will be needed. But that flexibility is always maintained.

Okay. The next question comes from Dan Kurnos with Benchmark. Please proceed.

Great. Thanks. Super comprehensive guys. Chris, just long, long overdue on the sunsetting of one point zero. Obviously, we've been waiting for a while for that and then kind of the go forward steps here think we're also kind of eyeing '27 as a real revenue year, there's a lot more that you guys have announced and you guys have some extra initiatives that are unique to you. So how do we think about the impact of ATSC over the next two to three years? Yes. Thank you for that. It is like this is a watershed day with the filing from the NAB putting in place hopefully if accepted by the SEC a sunset of Wandeto, which will significantly increase the revenue opportunity that we have within three point zero because there'll be so much more spectrum to be used, which could be used for more content, but also be used for the day Edge Beam Wireless with our broadcasting partners to go pursue. So we think it's a huge development that sunset is being put in place As I've stated before, I do think there'll be some amount of revenue generated in 2025 as it relates to 3.0, but it will be small.

And it will build from there. The other good news is that between now 70% of the country, which is plan where the top 55 markets would transition completely by February of twenty twenty eight, We are working on other strategies to increase additional three point zero capacity within the markets that we've already transitioned and actually complete the 20% or so of the markets that we have yet to transition. And we can do that through additional channel sharing, improvements in compression, And as Edge Beam develops more uses for our spectrum which are honestly popping up every other day. The need for more capacity is going to become the limiter. And so between now and and 2028, we'll be working on increasing that capacity so that we can generate more revenue And then when when all of one point zero is sunset, that's when the real volume of new revenue will start to come in to the industry.

And then just one more You gave color on some of the stuff we're seeing with Charter. We've heard positive kind of re bundling Comcast as well. So ecosystem maybe pacing a bit better Just what are your thoughts on sub trends And I know you guys don't have reverse up until the end of twenty twenty six, but I think your peers may start to talk about reverse coming down. So just how should we think you gave some pretty strong comments on that, but just those two pieces together for people. Thank you.

Yes.

Thanks. Look, I'm more optimistic about Pay TV than I have been in a long time. As we've detailed, the charter strategy bundling and streaming we think is a winner and we're already [indiscernible] good signs of that with their they had a really great report in Q4. Now we won't see the results of that in our business till for a quarter later. Because we're in arrears. But even Comcast who hasn't copied the Charter strategy saw an improvement in their last quarter churn trends. So when you add up the combination of our new contracts which we put in place over the course of 2024, which I think really improved the outlook for our retrans [indiscernible] improving churn, which you're starting to see in some of these bigger players as they as they counter as they actually react to what's happening in streaming, and streaming becomes more expensive and less convenient and all the other things that we've talked about. We are you add that up and we think our net retrans outlook is extremely positive. As you noted, on the network side, we don't have much up So I think we were very successful in resetting expectations through our last cycle.

But I wish our competitors well in their next cycle And I think that the dynamics within the industry are positive towards the affiliates in that regard.

Great. Thanks, Chris. Appreciate it.

The next question comes from Aaron Watts with Deutsche Bank. Please proceed.

Afternoon, everyone. Thank you for having me on. Two questions. First, you're guiding first quarter core adds down around 3%.

I heard your comments that it feels like there's some firming up as the quarter unfolds. Based on what you're seeing in the marketplace today, do you think you can grow core advertising for the full year? And maybe you can talk to some of the key factors and verticals playing into your outlook And then I've got one more.

Yes. This is Rob. And the answer is yes. We do think we could it into a positive One is that's one of the reasons why we rebranded our we have national scale and we're going to hit local geo targets. So thus the name AMP Sales and Marketing Solutions And because we have a cross platform solution, it's not one stop shopping. And we're coming up with unique activations across our platform that will drive it. Automotive right now in the fourth quarter, somewhat soft first quarter of soft but you're going to see heavy inventories on the local dealers to Tier three. And at a given point, the dealers are going to have to activate and we project buying down the interest rates. Right now, there were softness due to high interest rates and it's our belief that the interest rates will will soften and be more attracted to go lease or buy a car We're seeing our service category in And so we expect as the consumer confidence grows, that we'd be able to turn this into a positive year for us.

Yes, Aaron. And just to put a finer point on that too, we definitely a firming in the business as the quarter has progressed. From some of the late weakness we saw in late Q4, early Q1.

And so we see that as a positive sign. As you know, the general economy is certainly sending mixed signals to people. But we've seen affirming there. And then also remember for the year, most of the crowd out is in the back half of the year. So that is going to auger well for the back half of the year.

And in addition, we are selling our sports very successfully. On a Fox to Fox comparison 23% to 25%. We were up $1,900,000 in revenue. Year over same like year with the affiliates. We are facing to be up as well with the March Madness And so we're capitalizing on our two largest affiliate base groups having these marquee events in first quarter and March Madness bleeds over into somewhat early April as well.

Okay. Very helpful guys. I appreciate all that. If I could ask one more. A bit of a political advertising postmortem, you're coming off a record year. That said, as you've now had time to suggest how it all shook out, how do you feel about Broadcast TV and Sinclair's Sinclair specifically defending your share against digital, CTV, etcetera, as we think ahead to this the next round 2026, 2028, Thanks for that, Aaron. I think the last political session was a resounding success for Broadcast TV and just reaffirmed how important we are in the ecosystem We were the only media that increased dollars versus 2020. We're up 9% as an industry. And clearly, there was a new player on the scene connected TV, OTT ads, which took about $2,000,000,000 of spending, but it largely took that from digital media, cable, radio and other sources. So And then as you further dissect what happened in the last election cycle, Republicans spent 53% of their budget on broadcast and Democrats only spent 39% on broadcast. And so I think that just underscores the ROI that is delivered by broadcast. When you take a look at how the last 2024 political season played out.

And I'd also say we're the only ones that can touch the local communities. Everybody else is just about tonnage. We're able to do local town halls, [indiscernible] showcase the different people running locally as well. We also play in the connected TV space. So again, thus the name changes because we offer these solutions across all platforms on a go forward basis and we did it in the last election cycle. So coming off a record year, we don't see anything slowing down. We'll have a very competitive midterm leading into first time in a long while as we both Chris and I iterated on that there will be open primaries for both the Dems and the Republicans.

Very helpful. Thanks again, guys. Next question comes from David Hamburger with Morgan Stanley. David, please proceed. Hi, thank you very much. If I could ask a couple of questions and then one housekeeping. On the net retrans revenues, I appreciate you reiterated guidance mid single CAGR over twenty twenty three to 2025. I was wondering if we could get unpack that a little bit. It looks like your distribution revenue guidance for 25% is up 4%.

Then I know this is not apples to apples, so that's where maybe hoping you could provide some guidance. I see the for the year, you're guiding media programming production SG and A expense up 2% year over year.

Can we think about that as about that net retrans revenues this year will be up say about 2% versus the more than 5% last year, and maybe in that context, it looks like you did 80% of your retrans renewals, but it looks like Comcast has not renewed. And then maybe you've been on kind of one year extensions or something with Comcast and maybe you can highlight what your anticipation is for for that renewal?

Okay. I'll deal with that and then I'll hand it over to Lucy to talk about some of the guidance questions. But look, in regards to our remaining MVPD that the 20% or so that we're still in active negotiations We have put In progress. We'll have that wrapped up soon. Yes. So, David, we don't have full year revenue guidance on The Street. But what I would tell you is we expect Growth in the net retrans [indiscernible] with broadcast the rates kick in, the step ups renewals kick in based on when the renewal occurs, right? So it's not like in cable where everything happens on the first day of the year. These occur as you're cycling through. So we had a lot of renewals in 2024. So we will see the effect of those year one renewals as we go through 2025. As well as some nice annual escalators that take place as well. So we do expect net retrans to to grow in 2025.

Okay. That's helpful.

Just curious if you maybe if you take a longer timeframe how you think about how should we think about the growth in net retrans as we go through the year and into next year? [indiscernible] giving explicit guidance beyond 2025 right now. However, as we've noted, we've seen some positive signs on the churn front. We think that the charter strategy is already working and will work even better once they really start to publicize it. And we think other MVPDs will follow. When they see that success. That coupled with the new deals that we put in place, which I think more appropriately deal with the current environment in terms of how we spread the rates around. We add all that up and we believe that net net retrans will grow [indiscernible] Okay. Thanks. And just on leverage, can you just kind of reiterate what your leverage targets now are and now you have first lien and second lien debt, as we think about secured leverage overall versus total leverage and maybe a little bit about how you think when you might achieve those targets and how Yes. So the leverage for total net has not changed. It's still high three, low four times.

We certainly are not going to get there this year. In a non political year and given the tax payment that we have related to the Diamond emergence. However, We will look the business will naturally delever, right? 26% is, as we said, we expect to be a big midterm election year. As we run through our podcasting strategy, right, which we just really launched a year ago. That will contribute to the EBITDA. As Chris talked about with potential M and A, right, with whether it's expense synergies on swaps or savings on bringing in JSA's at very low leverage multiples. All those kinds of things will will help delever the company as well as the ability to go out and also buy in some of the the debt that's trading at [indiscernible] Okay.

Thank you very much. Up next is Benjamin Soff with Deutsche Bank.

Good afternoon. Thanks for the question. Really exciting stuff. With the balance sheet transactions and then the commentary about potentially returning cash to shareholders. So I'm wondering what you would want to see in the business before you begin that process? Well, I think what we're saying on the call is we've already see it in the business. So there's nothing more that we need to see Getting the comprehensive refinancing done at was a major milestone that we wanted to get done before we made any big commitments one way or the other. And now that it's done, we have the flexibility to both invest in new control investments, which is our strategic intent but also take advantage of what we think is a woefully undervalued share price where we still are way, way below our some of the parts. So So that is very much on our mind. And then you highlighted a pretty large TAM for Edge Beam. How do you think about competition for that TAM from other industries? And what do you think broadcast's fair share is of that opportunity? Well, the three areas that Beam is going to be focused on first is streaming offload the CDN market, precision navigation, and automotive connectivity. [indiscernible] Those are just three of the first use cases, which already have POCs pilot clients, a lot of work has been done by the various broadcasters in those areas And so Edge Beam is coming in with a running start and is going to take all that work and start commercializing those into real revenue.

And the TAM within those three is about $50,000,000,000 By the way, the entire TAM of the broadcast industry is about $40,000,000,000 So, the idea here is to play into different pools of opportunities And I don't think that we're just going to be limited to those three. Other markets. There'll be others as we develop the asset. And if you Just assume a small percentage share in those much larger markets in totality it's significant revenue for the industry. And we have value propositions within each of those, which are unique Either we can do something at a much lower cost or we can do things that other wireless systems just simply can't do. And so, it remains to be seen what we ultimately grab in terms of [indiscernible] But you don't have to make a very percolian assumption for a lot of revenue start flowing our way. Okay. Appreciate the color. Thank you.

We have reached the end of the question and answer session. And I will now turn the call over to Chris Ripley, President and Chief Executive Officer for closing remarks.

Thank you, operator, and thank you all for joining us today and your support of Sinclair to the extent you have any questions or comments please don't hesitate to reach out to us. Thank you for your participation. [indiscernible] [indiscernible] [indiscernible] [indiscernible] [indiscernible] [indiscernible] [indiscernible] [indiscernible] [indiscernible] [indiscernible] [indiscernible]