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Dec 31, 2022

Nexstar Q4 2022 Earnings Report

Nexstar reported record Q4 net revenue and strong growth in adjusted EBITDA and free cash flow, driven by political advertising and the acquisition of The CW.

Key Takeaways

Nexstar Media Group reported record fourth-quarter net revenue of $1.49 billion, a 19.3% increase year-over-year. The company's adjusted EBITDA increased by 19.8% to $598.2 million, and attributable free cash flow increased by 27.8% to $422.1 million. Excluding The CW Network, adjusted EBITDA increased by 32.5% to $661.8 million, and free cash flow increased by 38.7% to $458.1 million.

Nexstar's Q4 net revenue increased by 19.3% year-over-year to $1.49 billion.

Q4 adjusted EBITDA increased by 19.8% to $598.2 million.

Q4 attributable free cash flow increased by 27.8% to $422.1 million.

Excluding The CW, Q4 adjusted EBITDA increased by 32.5% to $661.8 million and free cash flow increased by 38.7% to $458.1 million.

Total Revenue
$1.49B
Previous year: $1.25B
+19.3%
EPS
$5.3
Previous year: $6.19
-14.4%
Adjusted EBITDA
$598M
Previous year: $496M
+20.6%
Political Advertising Revenue
$266M
Previous year: $18.9M
+1307.4%
Gross Profit
$985M
Previous year: $781M
+26.1%
Cash and Equivalents
$204M
Previous year: $191M
+6.9%
Free Cash Flow
$406M
Previous year: $287M
+41.3%
Total Assets
$12.7B
Previous year: $13.3B
-4.4%

Nexstar

Nexstar

Nexstar Revenue by Segment

Forward Guidance

For the 2023/2024 cycle, Nexstar expects to generate pro forma average annual attributable free cash flow of approximately $1.25 billion, inclusive of $90 million of attributable losses and associated tax benefit from The CW.

Positive Outlook

  • 2023 will benefit from the 2022 renegotiation of our distribution contracts representing more than half of our subscribers
  • 2024 will benefit from presidential election year political advertising
  • 2024 will benefit from additional distribution contract renewals
  • Strong free cash flow enables us to increase the percentage of capital returned to shareholders in the form of dividends
  • Strong free cash flow enables us to continue to opportunistically repurchase shares, as well as reduce debt and pursue other strategic opportunities to further enhance shareholder value.

Revenue & Expenses

Visualization of income flow from segment revenue to net income