After reporting higher earnings in the first quarter, Sinclair Broadcast Group said that core ad revenues were likely to be down between 32% and 39% in the second quarter because of the effect the COVID-19 pandemic is having on the economy. The company also said that it is not counting on any professional sports games being played in the second quarter and said that will result in its recently acquired regional sports networks getting money back from teams it carries, but it will also have to make payments to its distributors. The company is rebranding the RSNs and giving them a digital reboot that will also allow users to do legalized gambling through apps. Related: Sinclair Agrees to Pay Record $48 Million PenaltyGiven the economic situation, Sinclair pulled its full-year guidance until it gets a clearer picture of revenues and expenses. Sinclair stock has been hurt by both uncertainty over advertising revenues and by the way the shutdown of games is impacting its sports business. On the company’s first-quarter call with analysts, CEO Chris Ripley said he understood that its investors have been disheartened.
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