Sinclair Benefits From Strong Political Ad Growth; Political Spending Expected to Explode in 2H

Sinclair posted a slightly better-than-expected second quarter as revenue was in line with adjusted EBITDA and beat FactSet consensus. The quarter was the first since Diamond Sports Group (the regional sports networks holding company) was deconsolidated on March 1 due to the need to recapitalize the group. DSG is now held on an equity basis by Sinclair, and management barely spoke about the RSN business. Despite the change, Sinclair continues to own nearly 100% of the equity of DSG. We maintain our $30 fair value estimate.