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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.

Total Revenue
$1.38B
Previous year: $1.1B
+25.2%
EPS
$7.97
Previous year: $2.36
+237.7%
Adjusted EBITDA
$657M
Previous year: $379M
+73.3%
Political Advertising Revenue
$298M
Previous year: $36.5M
+716.6%
Gross Profit
$945M
Previous year: $668M
+41.4%
Cash and Equivalents
$153M
Previous year: $232M
-34.2%
Free Cash Flow
$443M
Previous year: $174M
+154.9%
Total Assets
$13.4B
Previous year: $14B
-4.2%

Nexstar

Nexstar

Nexstar Revenue by Segment

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