Nexstar’s third-quarter⁤ success story: Ad sales soar and CW cuts losses

Nexstar ‌Media ⁣Group has once again proven its dominance‌ in the broadcasting world with a stellar third quarter performance. ​The period from July‌ 1 to September 30, 2024, saw ad sales rise impressively by 22%, fueled by the buzz surrounding the upcoming presidential election. But⁢ that’s just the tip of the iceberg.

The CW’s strategic turnaround

The ⁤CW, Nexstar’s broadcaster, made noteworthy strides in reducing its operating losses.‍ This quarter, the network slashed its losses by $36 million, a significant achievement ‌that marks the company’s ongoing effort to streamline operations and enhance profitability.

Revenue highlights

Nexstar reported remarkable figures across ⁢various revenue streams for Q3:

• Distribution Revenue: Reached $719‍ million, ‌marking a 20% year-over-year growth.
• Ad Sales: Saw a substantial increase, hitting $622 million.
• Other Revenues: Contributed $25 million to the overall earnings.

Adjusted free cash flow

A ‌critical measure of financial health, Nexstar’s adjusted free cash flow for the ‍quarter⁣ was $327 million. This figure⁣ underscores​ the company’s ‌robust operational‍ efficiency and its capacity to ‍generate cash after accounting for capital expenditures.

Financial revelations

Wall⁣ Street analysts had forecasted an earnings​ per share (EPS) of $5.41 ⁣on $1.37 billion ⁢in revenue. Nexstar ​closely⁢ met these ⁣expectations, reporting a diluted EPS of $5.27 and a net income of $180 million on the same revenue ⁣figure.

CEO’s insights on record results

In a letter⁢ to shareholders, Nexstar CEO Perry Sook emphasized the record-breaking ‍financial results achieved in the third quarter.⁢ He pointed​ out how these results reflect the enduring ‌strength and relevance of Nexstar’s broadcast television business model.

Detailed financial performance

Highest Q3 net ​revenue: This period saw the company delivering the highest third-quarter net revenue in ​its history, a blend of record ⁤distribution ​and advertising revenues.

• Political Advertising: Reached an ​all-time high for ⁢the third quarter, amassing $154 million, which is up ‌16% compared to the same period in 2020.

Strategic achievements with The CW

Nexstar’s strategy for The CW has been yielding positive results, showcased by:

• NASCAR Xfinity Series racing ​debut: September⁤ saw the introduction of⁤ these races, marking ​a new era for the network.
• WWE NXT wrestling: Launched in ‌October, this program boosted the network’s total audience and viewership among adults 18-49 with ​double-digit percentage increases ⁢compared to its previous cable ‌broadcast.

Strong operational performance

Year-to-date,‍ Nexstar’s operational performance has been robust,⁤ resulting in $792 ​million of adjusted free ⁤cash flow. The company⁤ utilized ‌this strong cash ​flow to reward ⁢shareholders and reduce debt:

• Shareholder returns: ‍ Nexstar returned $590​ million (74% of the free cash flow) through dividends and share repurchases.
• Debt reduction: Managed to reduce debt by $146 million, strengthening the company’s financial position.

Looking ahead: Continued⁤ growth⁢ and innovation

Nexstar’s third-quarter performance underscores the continued relevance and strength of its ⁤business model, particularly in leveraging political advertising⁤ and strategic⁤ content like sports and entertainment to drive revenues. The company’s successful efforts to reduce the CW’s‍ operating losses showcase‌ its ⁣ability to ⁣adapt and thrive ⁣even amidst financial challenges.

The future looks promising for ⁣Nexstar as it continues to innovate and grow in the broadcasting industry. The company’s strategic moves, robust financial health, and commitment‌ to delivering value to shareholders ensure that it remains at the forefront of the media landscape.

Stay tuned ‍for the latest‌ updates on Nexstar’s ⁢journey in reshaping the broadcasting industry. Share this story with your⁢ network‌ and follow us for more insights and updates!