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Nexstar
🇺🇸 NASDAQ:NXST
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Jun 30, 2023

Nexstar Q2 2023 Earnings Report

Nexstar outperformed consensus expectations in Q2 2023, driven by strong performance across key financial metrics.

Key Takeaways

Nexstar Media Group reported second quarter net revenue of $1.24 billion, which was essentially flat compared to the prior year quarter. The company's strong performance was attributed to the benefits of scale in company-wide relationships and decentralized local and business-unit management. Adjusted EBITDA was $331 million and attributable free cash flow was $100 million.

Nexstar outperformed consensus expectations in the second quarter across all key financial metrics.

The CW entered into sports programming agreements to carry ACC football and basketball beginning in September 2023 and the NASCAR Xfinity Series beginning in 2025.

NewsNation became a 24/5 news network with the debut of new expanded daytime programming.

Nexstar shareholders voted to declassify the Company’s Board of Directors.

Total Revenue
$1.24B
Previous year: $1.25B
-0.4%
EPS
$2.64
Previous year: $5.56
-52.5%
Adjusted EBITDA
$331M
Political Advertising Revenue
$9M
Previous year: $86.7M
-89.6%
Gross Profit
$703M
Previous year: $744M
-5.4%
Cash and Equivalents
$346M
Previous year: $276M
+25.2%
Free Cash Flow
$81M
Previous year: $219M
-63.0%
Total Assets
$12.3B
Previous year: $12.9B
-4.7%

Nexstar

Nexstar

Nexstar Revenue by Segment

Forward Guidance

Looking forward, Nexstar expects the balance of 2023 will continue to reflect their ability to outperform the overall advertising market and benefit from renegotiated distribution contracts. They are even more excited about 2024 as Nexstar will realize upside from presidential election year political advertising, additional distribution contract renewals this year, a slowing of losses related to The CW Network, as well as expectations for a declining interest rate environment and a recovering economy.

Positive Outlook

  • Ability to outperform the overall advertising market.
  • Benefit from renegotiated distribution contracts.
  • Upside from presidential election year political advertising in 2024.
  • Additional distribution contract renewals in 2023.
  • Slowing of losses related to The CW Network.

Challenges Ahead

  • Ongoing impact of negotiations with certain distribution partners.
  • Continued softness in the advertising market.
  • Increased news expenses related to the expansion of news programming at NewsNation and Nexstar’s local news operations.
  • Reduction in the TV Food Network distribution primarily related to lower advertising revenue.
  • Losses related to The CW Network

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Nexstar