The increase to $1.2 billion was driven by strong political advertising revenue and healthy year-over-year increases in distribution, digital and other revenue, offset by a decline in core advertising.
QUARTERLY REPORT
Nexstar’s 2Q Net Revenue Up 10%
Nexstar Media Group this morning reported financial results for the second quarter of 2022 that included record 2Q net revenue of $1.25 billion, an increase of 10% from the same quarter of 2021.
The 2Q revenue comprised:
- Core ad revenue of $500 million, down 2.5%.
- Political ad revenue of $86.7 million, up 920%.
- Distribution fee revenue of $646 million, up 4.7%.
- Digital revenue of $88 million, up 20.2%.
- Other revenue of $11.1 million, up 20.7%.
Income from operations was $333.4 million, up 15.6%.
Net income totaled $226.5 million, an increase of 13.4%.
Free cash flow was $219 million, up 20.9%.
Perry A. Sook, Nexstar chairman, president and CEO, said: “Nexstar delivered record second quarter financial results, including all-time high second quarter net revenue, Adjusted EBITDA and free cash flow that once again exceeded consensus expectations. Our results benefitted from strong year-over-year growth in political advertising, distribution, and digital revenues.
BRAND CONNECTIONS
“Total television advertising revenue growth of 15.7% was driven by record second quarter political advertising revenue, which more than tripled on a quarterly sequential basis and rose four-fold versus the comparable 2020 period. In the first half of 2022, we returned 61.5% of Nexstar’s year-to-date free cash flow to our shareholders through a combination of dividends and share repurchases. This represents an all-time quarterly and six months high return of capital to shareholders of $284.3 million and $479.5 million, respectively.
“We continue to have solid three-year visibility on our growth trajectory, given the expected continuation of strong political advertising for the 2022 mid-term and 2024 presidential election cycles and the renewals of distribution agreements in 2022 and 2023 representing the substantial majority of our subscribers. In addition, we do not currently see evidence that macroeconomic challenges are having a material impact on Nexstar’s business. As a result, we are reiterating our pro forma average annual free cash flow guidance of $1.4 billion over the 2022/2023 cycle. The board’s recent approval of a new $1.5 billion share repurchase authorization, further underpins our confidence in Nexstar’s free cash flow growth outlook.”
Read the company’s report here.
Comments (0)