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Mar 31, 2022
Nexstar Q1 2022 Earnings Report
Nexstar reported record first quarter financial results, exceeding consensus expectations with all-time high net revenue, Adjusted EBITDA, and free cash flow.
Key Takeaways
Nexstar Media Group reported a strong start to 2022, delivering record first quarter financial results. The company exceeded expectations, generating all-time high net revenue and Adjusted EBITDA, as well as the highest quarterly free cash flow in the company's history. These results were driven by increases across all core and political advertising, distribution, and digital revenue sources.
Nexstar's Q1 2022 net revenue reached a record $1.21 billion, an 8.6% increase year-over-year.
Adjusted EBITDA increased by 12.5% to $642.7 million, representing a 53.1% margin.
Record quarterly free cash flow increased by 15.9% to $560.4 million, representing 87.2% of Adjusted EBITDA.
The company returned $195.2 million to shareholders through share repurchases and dividends.
Nexstar
Nexstar
Nexstar Revenue by Segment
Revenue by Segment
Distribution Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Nexstar anticipates strong mid-term and presidential political advertising and distribution agreement renewals, expecting to generate pro forma average annual free cash flow in excess of $1.40 billion over the 2022/2023 cycle.
Positive Outlook
- Strong mid-term and presidential political advertising expected.
- Distribution agreement renewals representing a significant percentage of subscribers.
- Healthy core television advertising environment.
- Expectation to generate pro forma average annual free cash flow in excess of $1.40 billion over the 2022/2023 cycle.
- Nexstar's diversified media platform produces compelling local and national news, sports, and entertainment content.
Challenges Ahead
- Recent macroeconomic challenges.
- Potential impact of changes in national and regional economies.
- Ability to service and refinance outstanding debt.
- Successful integration of acquired television stations and digital businesses.
- Pricing fluctuations in local and national advertising.
Revenue & Expenses
Visualization of income flow from segment revenue to net income