Nexstar’s Q2 Net Revenue Rises 2.3%

Nexstar Media Group this morning reported financial results for the second quarter of 2024 that included record second quarter net revenue of $1.27 billion, an increase of $29 million, or 2.3%, from the same quarter a year ago. The rise, it said, reflected growth in distribution and advertising revenue.

“Record second quarter distribution revenue of $734 million, increased $38 million, or 5.5%, over the comparable prior year quarter. Distribution revenue growth primarily reflects the impact of distribution contract renewals in 2023 on terms favorable to the company and annual rate escalators, growth in vMVPD subscribers, the addition of CW affiliations on certain of our stations, and the return of our partner stations on one MVPD in January, which more than offset MVPD subscriber attrition. Distribution revenue includes retransmission revenue, carriage fees, affiliation fees, and spectrum leasing revenue.

“Second quarter advertising revenue of $522 million increased $11 million, or 2.2%, compared to the prior year quarter reflecting a $37 million year-over-year increase in election-year political advertising to $45 million which more than offset a $24 million year-over-year reduction in non-political advertising revenue due to ongoing advertising market softness. Advertising revenue includes television and digital revenue primarily from businesses and political advertisers.

“Second quarter net income of $106 million increased $31 million, or 41.3%, compared to the prior year quarter, reflecting increased revenue and lower operating expenses driven, in part, by reduced amortization of broadcast rights at The CW, offset, in part, by reduced income from equity method investments related to the performance of the TV Food Network in which we have a 31.3% interest and increased income taxes. Net Income margin increased to 8.4% from 6.0% in the comparable prior year period.

“Second quarter Adjusted EBITDA of $398 million increased $63 million, or 18.8%, compared to the prior year quarter primarily reflecting revenue growth and a $33 million year-over-year reduction in losses at The CW, which more than offset a reduction of cash distributions from equity method investments from TVFN primarily related to lower advertising revenue. Adjusted EBITDA margin grew to 31.4% from 27.0% in the comparable prior year period.”

Perry A. Sook, Nexstar chairman, president-CEO, said: “Nexstar delivered another period of solid financial results, building on our strong start to the year. Following a first quarter in which Nexstar generated record first-quarter distribution and total net revenue, we did it again, generating our highest-ever second-quarter distribution and total net revenue.

“During the quarter, we continued executing on our plan at The CW, reducing operating losses by $33 million year-over-year and $83 million year-to-date as our organizational and programming changes are driving improved cash flows and the third consecutive quarter of ratings growth in primetime entertainment programming.

“Overall, our strong year-to-date operating performance yielded $483 million of Adjusted Free Cash Flow and we returned $358 million, or 74% of Adjusted Free Cash Flow, to shareholders in the form of dividends and share repurchases.

“Looking ahead, we expect to benefit from anticipated record levels of political spending on broadcast television in the second half of the year.”

Read the company’s report here.