Net revenue growth drives record 2Q operating income of $23.5 million, adjusted EBITDA of $34.5 million, and free cash flow of $19.3 million. Double-digit gains in political and retrans help power the results.
Nexstar Broadcasting Group today reported record financial results for the second quarter ended June 30 that included net revenue of $88.9 million, a 17.7% increase over last year’s second quarter.
Core local and national revenue increased 6.7% — including a 16% rise in automotive advertising, while television ad revenue inclusive of political advertising rose 12.7%.
The company said that while it expects political advertising growth to accelerate in the second half of 2012, Nexstar’s gross revenue growth in the second quarter excluding political was healthy at just over 13%.
Perry A. Sook, Nexstar chairman, president and CEO, said: “Beyond the strong gains in our core television operations, second quarter results extended the growth of Nexstar’s subscription based mobile and e-MEDIA revenue sources. In total, Nexstar’s second quarter retransmission fee and e-Media revenue rose 55.4% to $19.7 million and these higher margin revenue streams accounted for 22.2% of 2012 second quarter net revenue.
“Positive core advertising trends, revenue diversification initiatives and growing scale combined with a company-wide focus on expense management continue to bring strong operating leverage to our business model leading to significant year-over-year cash flow and margin growth,” Sook added.
He continued: “Second quarter 2012 station direct operating expenses, (net of trade expense) and SG&A rose primarily based on higher variable costs related to the significant rise in national, local and political revenues and the operation of new stations in Wisconsin, Michigan and Indiana, while corporate expense increased largely related to costs associated with the Newport transaction and the completion of the strategic review process.”
““Our current platform is on track to generate the highest annual free cash flow in the company’s history as expected revenue increases combined with operating and cost efficiencies and annual cap-ex commitments of approximately $16 to $17 million positions Nexstar to generate record free cash flow growth over the record 2010 levels of $60.1 million. We look forward to the completion of the Newport station acquisitions later this year or early next year which will increase to 67, the number of stations that Nexstar owns, operates, programs or provides services to.”
Read the company’s report here.