Nexstar Q2 2022 Earnings Report
Key Takeaways
Nexstar Media Group reported record second-quarter financial results, including all-time high net revenue, Adjusted EBITDA, and free cash flow. The company saw strong year-over-year growth in political advertising, distribution, and digital revenues. Nexstar is reiterating its pro forma average annual free cash flow guidance of $1.4 billion over the 2022/2023 cycle.
Record second quarter net revenue of $1.25 billion, up 10.0% year-over-year.
Adjusted EBITDA increased 16.1% to $486.3 million, representing a 39.1% margin.
Free cash flow increased 20.9% to $219.0 million, representing 45.0% of Adjusted EBITDA.
Returned $284.3 million to shareholders through share repurchases and dividends.
Nexstar
Nexstar
Nexstar Revenue by Segment
Forward Guidance
Nexstar is reiterating its pro forma average annual free cash flow guidance of $1.4 billion over the 2022/2023 cycle.
Positive Outlook
- Expected continuation of strong political advertising for the 2022 mid-term and 2024 presidential election cycles
- Renewals of distribution agreements in 2022 and 2023 representing the substantial majority of our subscribers
- Company does not currently see evidence that macroeconomic challenges are having a material impact on Nexstar’s business.
- Board’s recent approval of a new $1.5 billion share repurchase authorization
- Confidence in Nexstar’s free cash flow growth outlook
Revenue & Expenses
Visualization of income flow from segment revenue to net income