The record revenue of $146.9 million is driven by increases in every area except national, with big percentage gains from political, digital and retrans.
Nexstar 2Q Net Revenue Up 16.4%
Nexstar Broadcasting Group today reported record second quarter revenue of $146.9 million, up 16.4% from the year-earlier period.
It breaks down to:
- Local revenue was up 5.6% to $70.5 million
- National revenue decreased 8.8% to $26 million
- Retransmission consent money rose 40.3% to $35 million
- Political revenue increased 270% to $6.7 million
- Digital media revenue was climbed 72.8 % to $13.2 million
Income from operations rose 24% to $34.9 million.
Perry A. Sook, Nexstar chairman, president and CEO, commented: ““Nexstar’s long-term strategy to complete and integrate accretive acquisitions while building complementary revenue streams that leverage our local content and relationships drove record second quarter net revenue, BCF, adjusted EBITDA and free cash flow. Our year-to-date financial results are in-line with our expectations and we remain confident that Nexstar will generate record free cash flow in 2014 based on core advertising trends and rising political spending in the second half of the year, contractual retransmission revenue growth and our expanded digital media operations. In addition, later this year we expect to close pending transactions which will result in the addition of 27 stations and benefit operating results in late 2014 and beyond.
“Our 16.4% rise in second quarter net revenue generated 17.8% growth in BCF, a 15.5% increase in adjusted EBITDA, and a 48.5% rise in free cash flow. During the second quarter, television ad revenue inclusive of political advertising rose 6.3% with core local and national spot revenue increasing 1.3%, including a 4.0% rise in same station automotive advertising and year-over-year increases in six of our top ten categories. Reflecting our expanded platform and presence in states with high levels of political spending activity, 2014 second quarter political revenue rose by 270% compared to the same period last year and by 12.8% over comparable 2012 second quarter levels.
“While political ad spending in our markets will accelerate in the second half of 2014, Nexstar’s gross revenue growth in the second quarter excluding political was healthy at just over 12% and reflects the 40.3% rise in retransmission fee revenue and 72.8% increase in digital media revenue. Recently renegotiated retransmission consent agreements combined with the growth of our digital publishing platform and digital agency services offerings resulted in a 47.9% increase in Nexstar’s total second quarter retransmission fee and digital media revenue to $48.2 million. Consistent with our revenue diversification objectives, these higher margin revenue streams accounted for 32.8% of 2014 second quarter net revenue up from 25.8% in the comparable period last year and 22.2% in the 2012 second quarter, the last political cycle.
“Looking forward, with distribution agreements representing over 40% of Nexstar’s subscribers up for renewal in 2014, we project ongoing significant revenue growth from this source in the remainder of 2014 and beyond. In addition, digital media revenue growth in the second half of 2014 will benefit from the second quarter accretive acquisitions of Internet Broadcasting Systems, a digital publishing platform and digital agency services provider as well as cloud-based content management solutions provider Enterprise Technology Group. These strategic additions to Nexstar’s existing digital platform and agency capabilities have enabled us to expand the range of best of breed content publishing and monetization tools that we offer to power our clients’ digital media businesses and have expanded Nexstar’s digital business portfolio to over $50 million in annual run rate revenues.