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Mar 31, 2023

Nexstar Q1 2023 Earnings Report

Nexstar reported record first-quarter net revenue, driven by distribution revenue and the acquisition of The CW, which offset declines in political and Olympic advertising.

Key Takeaways

Nexstar Media Group reported record first-quarter net revenue of $1.26 billion, a 3.9% increase year-over-year. The growth was driven by distribution revenue and the acquisition of The CW. The company returned $225 million to shareholders through dividends and share repurchases.

Record first quarter net revenue of $1.26 billion, up 3.9% year-over-year.

Adjusted EBITDA was $491 million with a 39.1% margin.

Attributable free cash flow was $383 million.

Returned $225 million to shareholders through share repurchases and dividends.

Total Revenue
$1.26B
Previous year: $1.21B
+3.9%
EPS
$2.97
Previous year: $5.99
-50.4%
Adjusted EBITDA
$491M
Previous year: $643M
-23.6%
Political Advertising Revenue
$8M
Previous year: $23.7M
-66.2%
Gross Profit
$719M
Previous year: $720M
-0.2%
Cash and Equivalents
$413M
Previous year: $326M
+26.6%
Free Cash Flow
$458M
Previous year: $560M
-18.3%
Total Assets
$12.5B
Previous year: $13.1B
-4.8%

Nexstar

Nexstar

Nexstar Revenue by Segment

Forward Guidance

Nexstar expects 2023 to benefit from recently renegotiated distribution contracts and anticipates strong upside in 2024 from presidential election year political advertising and additional distribution contract renewals.

Positive Outlook

  • Benefit from recently renegotiated distribution contracts
  • Strong upside from presidential election year political advertising in 2024
  • Additional distribution contract renewals expected later this year
  • Leveraging linear, digital, mobile and streaming assets
  • Nationwide reach with local activation

Challenges Ahead

  • Cyclical year-over-year decline in political and Olympic advertising
  • Softness in the advertising market primarily due to national advertising
  • Losses related to The CW
  • Increased news expenses related to the expansion of news programming at NewsNation
  • Reduction in the TV Food Network distribution

Revenue & Expenses

Visualization of income flow from segment revenue to net income