The drop to $60.4 million is pegged to lower ad revenue, especially political, that could not be offset by a 28% rise in revenue from retransmission consent and e-media initiatives.
Nexstar Broadcasting Group’s net revenue for the quarter ended Sept. 30 totaled $60.4 million, a 14.1% decline from record third quarter revenue of $70.3 million in the comparable period of 2008.
The company said the lower net revenue reflects a $6.8 million or 87% reduction in gross political spending as well as the overall downturn in advertising spending due to the impact of the current economic recession.
The net revenue decline related to the economy and significant reductions in political and automotive spending more than offset a 28.1% year-over-year increase in total revenue derived from retransmission consent agreements, e-media initiatives and management fees.
Perry A. Sook, Nexstar chairman, president and CEO, commented: “Nexstar’s third-quarter results highlight the benefits of our revenue initiatives related to retransmission consent agreements, e-media and management agreements; select accretive station acquisitions; and our success in generating new local direct advertising. Third-quarter retransmission consent revenues increased 27.4% to $7.9 million while e-media revenues rose 8.8% to $3.0 million. While we continue to generate record aggregate quarterly revenue from these sources, Nexstar also recorded approximately $0.5 million of management fee revenue in the 2009 third quarter. As a result, despite the unfavorable economic environment, Nexstar’s 2009 revenue comparisons, excluding political, have improved on a quarterly sequential basis throughout the year.”
The Company incurred a loss from operations of $13.6 million for the three months ended September 30, 2009 compared with a loss from operations of $36.8 million in the third quarter of 2008.