A 56% gain in revenue from retransmission consent agreements, e-Media initiatives and management fees wasn’t enough to offset lower local, national and political ad sales.
Nexstar Broadcasting Group today reported financial results for the second quarter ended June 30. Net revenue totaled $62.2 million, a 12% decline from the company’s record second quarter revenue of $70.6 million in the comparable period of 2008.
It said the lower net revenue reflects the overall downturn in advertising spending due to the impact of the current economic recession as well as a $2.8 million (77.0%) reduction in gross political spending in a non-election year.
The net revenue decline related to the economy and reduction in political spending in a non-election year more than offset a $4.1 million or 56.2% increase in total revenue derived from retransmission consent agreements, e-Media initiatives and management fees.
Nexstar reported income from operations for the three months of $9 million, compared with $16.2 million in the quarter ended a year ago. Broadcast cash flow totaled $20.1 million in the second quarter of 2009 compared with $28.3 million for the same period in 2008.
Adjusted EBITDA totaled $16.4 million for the second quarter of 2009, compared with $24.8 million in the second quarter of 2008. Free cash flow in this year’s quarter was $5 million, compared with $11.1 million in the comparable period of 2008.
Perry A. Sook, Nexstar chairman, president and CEO, commented: “Nexstar’s second quarter and year-to-date results demonstrate that the company continues to be an industry leader in revenue performance in good times and bad. Second quarter results are in line with our operating expectations for the current environment as strong aggregate year-over-year increases in retransmission consent and e-Media revenues, and the recognition of initial management fee revenue, partially mitigated the softness in spot revenue related to weak national and local economies.
“Second quarter retransmission consent revenues increased 68.1% to $7.9 million while e-Media revenues rose 15.4% to $3 million. In addition to continuing to generate record quarterly revenue from these sources, Nexstar also realized the initial benefits of its agreement with Four Points Media Group LLC as we recorded approximately $500,000 of management fee revenue.