•
Sep 30, 2020

Nexstar Q3 2020 Earnings Report

Nexstar reported record third quarter results driven by strong revenue growth and effective cost management

Key Takeaways

Nexstar Media Group reported record third quarter net revenue of $1,118.2 million, a 68.5% increase year-over-year. The company also achieved record operating income, net income, BCF, adjusted EBITDA, and free cash flow. The company allocated capital towards debt reduction and share repurchases, demonstrating its commitment to shareholder value.

Net revenue increased by 68.5% year-over-year to $1,118.2 million.

Adjusted EBITDA increased by 209.1% year-over-year to $443.6 million.

Free cash flow increased by 268.3% year-over-year to $219.0 million.

The company lowered net debt by $162.5 million and repurchased $125 million of Class A common shares.

Total Revenue
$1.12B
Previous year: $664M
+68.5%
EPS
$4.08
Previous year: -$0.1
-4180.0%
Adjusted EBITDA
$444M
Previous year: $144M
+209.1%
Political Advertising Revenue
$132M
Previous year: $10.9M
+1114.7%
Gross Profit
$697M
Previous year: $346M
+101.8%
Cash and Equivalents
$410M
Previous year: $317M
+29.1%
Free Cash Flow
$219M
Previous year: $40.8M
+436.4%
Total Assets
$13.3B
Previous year: $14.1B
-5.8%

Nexstar

Nexstar

Nexstar Revenue by Segment

Forward Guidance

Nexstar expects record results in the fourth quarter, reflecting the final weeks of political spending leading up to Election Day. The company is encouraged by the advertising rebound, particularly in the auto category, and the launch of News Nation.

Positive Outlook

  • Month-over-month improvements in pacing data.
  • Expected record results reflecting the final five weeks of political spending.
  • Advertising rebound across the station footprint, notably in auto.
  • Resurgence in large box retail spending, fast food, home improvement, attorney and sports wagering ad spending.
  • Successful launch of WGN America’s primetime national newscast, News Nation.

Revenue & Expenses

Visualization of income flow from segment revenue to net income