Big drops in political revenue and network comp from the year-ago quarter are offset by gains in core revenue, retrans and e-Media money.
Nexstar 1Q Revenue Increases 2%
Nexstar Broadcasting Group today reported financial results for the first quarter ended March 31 that included a 1.9% increase in net revenue to $69,945,000, up from $68,626,000 in the same quarter a year ago. Income for the quarter was down 6.7% to $9,166,000.
The company’s revenue components included:
- Local revenue rose 3.7% to $43,257,000
- National revenue grew 2.1% to $15,061,000
- Retransmission fee money was up 15.6% to $8,517,000
- e-Media revenue climbed 23.8% to $3,673,000
- Political revenue fell 82.2% to $560,000
- Network compensation was down 20.9% to $841,000
Perry A. Sook, Nexstar’s chairman, president and CEO, commented: “Nexstar’s strong operating and financial momentum continues in 2011 as reflected by our record first quarter net revenue and record ‘odd year’ EBITDA and free cash flow. Our strategies for building new-to-television local direct billings combined with the ongoing advertising rebound drove Nexstar’s sixth consecutive quarter of core television advertising revenue growth. In addition, we continue to make significant debt reduction progress and, as announced last month, will expand our station base and coverage through the accretive and de-leveraging acquisition of two CBS affiliated stations later this year.
“Nexstar’s 2011 first quarter revenue increase of 1.9% was driven by growth in both core local and national revenue — including a near double digit gain in automotive advertising — as well as ongoing robust e-Media and retransmission fee revenue growth. Strength in core television advertising trends — which began for Nexstar in the 2009 fourth quarter — is continuing in 2011 and we are well positioned to grow all of our non-political revenue sources throughout 2011.
“During the first quarter, the continued execution of our strategies to leverage the content chain and diversify our revenue sources more than offset the 82% year-over-year decline in political advertising as well as the benefit in last year’s first quarter from advertising related to Winter Olympics programming. Excluding the impact of political revenue from both periods, Nexstar’s first quarter 2011 gross revenue rose approximately 5.2% compared with the first quarter of 2010. Total first quarter retransmission fee, mobile and e-Media and management fee revenue rose 17.1% to $12.7 million, and these higher margin revenue streams accounted for over 18% of 2011 first quarter net revenue, their highest contribution to our quarterly revenue mix since these revenue streams were established.”
Read the company’s report here.