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Sep 30, 2023

Nexstar Q3 2023 Earnings Report

Reported a decrease in net revenue due to decline in political advertising and distribution revenue impact but highlighted growth in digital revenue and return of capital to shareholders.

Key Takeaways

Nexstar Media Group reported Q3 2023 results with a net revenue of $1.13 billion, a decrease compared to $1.27 billion in the prior year quarter. The decline was primarily due to a decrease in political advertising revenue and distribution revenue. Despite the revenue decrease, the company focused on returning capital to shareholders, repurchasing shares, and paying dividends.

Net revenue for Q3 2023 was $1.13 billion, compared to $1.27 billion in Q3 2022.

Core advertising revenue decreased by 2.3% year-over-year to approximately $391 million.

Digital revenue increased by 15.1% year-over-year to approximately $99 million.

The company returned $246 million to shareholders through share repurchases and dividends in Q3 2023.

Total Revenue
$1.13B
Previous year: $1.27B
-10.8%
EPS
$0.7
Previous year: $6.24
-88.8%
Adjusted EBITDA
$236M
Previous year: $489M
-51.7%
Political Advertising Revenue
$19M
Previous year: $129M
-85.3%
Gross Profit
$375M
Previous year: $758M
-50.5%
Cash and Equivalents
$164M
Previous year: $347M
-52.7%
Free Cash Flow
$102M
Previous year: $294M
-65.3%
Total Assets
$12B
Previous year: $13.1B
-8.0%

Nexstar

Nexstar

Nexstar Revenue by Segment

Forward Guidance

Nexstar expects the balance of 2023 and full year 2024 to benefit from recently renegotiated distribution contracts. In 2024 Nexstar will realize upside from presidential election year political advertising, reduced losses related to The CW Network and an improving economic environment.

Positive Outlook

  • Recently renegotiated distribution contracts are expected to benefit the balance of 2023 and full year 2024.
  • Upside from presidential election year political advertising in 2024.
  • Reduced losses related to The CW Network in 2024.
  • Expecting an improving economic environment.
  • Clear set of objectives for creating the greatest long-term value for our shareholders.

Revenue & Expenses

Visualization of income flow from segment revenue to net income