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Jun 30, 2020
Nexstar Q2 2020 Earnings Report
Nexstar's Q2 2020 results reflected record net revenue, operating income, and net income, driven by growth in television advertising and distribution fee revenues.
Key Takeaways
Nexstar Media Group reported record second-quarter results, with net revenue, profitability, and cash flow metrics exceeding expectations. The company's diversified business model and expense management contributed to a 40.9% increase in net revenue and significant growth in broadcast cash flow, adjusted EBITDA, and free cash flow.
Net revenue increased by 40.9% year-over-year, reaching $914.6 million.
Operating income grew by 30.9% to $196.3 million.
Adjusted EBITDA increased by 48.6% year-over-year to $292.8 million.
Free cash flow increased by 127.3% year-over-year to $194.9 million.
Nexstar
Nexstar
Nexstar Revenue by Segment
Revenue by Segment
Distribution Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Nexstar expects to be free cash flow positive in every quarter of 2020 and anticipates net leverage to decline to approximately 4x by year-end.
Positive Outlook
- Month over month improvement in pacing data
- Benefit from significantly increased levels of political ad spending beginning in September
- Nearly all markets have reopened in some form
- Key economic indicators, including employment and consumer spending, are improving
- Live news and sports programming continue to generate the strongest levels of viewership across all demographics
Challenges Ahead
- Pandemic continues to impact commercial advertising
- Economic impact on the U.S. commercial advertising market
- Unprecedented challenges that have impacted our families, the economy and our daily lives
- Softer local customer buying trends related to the COVID-19 pandemic
- Marketplace challenges
Revenue & Expenses
Visualization of income flow from segment revenue to net income