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Dec 31, 2020
Nexstar Q4 2020 Earnings Report
Nexstar reported record fourth-quarter results, driven by substantial increases in political advertising revenue and distribution fee revenue, as well as strategic cost-cutting measures.
Key Takeaways
Nexstar Media Group reported record fourth-quarter net revenue of $1.377 billion, a 25.1% increase year-over-year. The company achieved record operating income, net income, Adjusted EBITDA, and free cash flow. Nexstar allocated $224.3 million toward leverage reduction and repurchased $84.3 million of Class A common shares. They also initiated pro-forma average annual free cash flow guidance for the 2021/2022 cycle of $1.27 billion.
Nexstar's Q4 net revenue increased by 25.1% year-over-year to $1.4 billion.
The company's adjusted EBITDA grew by 73.3% and free cash flow increased by 154.9% compared to the prior year.
Political advertising revenue saw a significant rise, contributing to overall revenue growth.
Nexstar is reinstating guidance and expects to generate pro-forma average annual free cash flow of approximately $1.27 billion over the 2021/2022 cycle.
Nexstar
Nexstar
Nexstar Revenue by Segment
Revenue by Segment
Distribution Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Nexstar expects to generate pro-forma average annual free cash flow of approximately $1.27 billion over the 2021/2022 cycle.
Positive Outlook
- Improving economic trends
- Continued double-digit growth of distribution revenue
- Spending related to the return of high-profile events including the NCAA basketball tournament
- Spending related to the Tokyo Summer Olympic Games
- Excellent visibility to delivering on or exceeding our free cash flow targets
Revenue & Expenses
Visualization of income flow from segment revenue to net income