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Dec 31, 2023

Nexstar Q4 2023 Earnings Report

Nexstar's Q4 2023 financial results outperformed expectations with strong free cash flow generation and shareholder returns.

Key Takeaways

Nexstar Media Group reported Q4 2023 net revenue of $1.3 billion, operating income of $230 million, net income of $100 million, adjusted EBITDA of $411 million, and attributable free cash flow of $265 million. The company successfully renewed distribution agreements and managed shareholder returns through dividends and share repurchases.

Net revenue was $1.3 billion, a decrease compared to the prior year quarter, primarily due to a decline in political advertising revenue.

Adjusted EBITDA reached $411 million with a 31.5% margin.

Attributable free cash flow was $265 million.

The company returned $137 million to shareholders through share repurchases and dividend payments.

Total Revenue
$1.3B
Previous year: $1.49B
-12.3%
EPS
$3.32
Previous year: $5.3
-37.4%
Adjusted EBITDA
$411M
Previous year: $598M
-31.3%
Political Advertising Revenue
$30M
Previous year: $266M
-88.7%
Gross Profit
$554M
Previous year: $985M
-43.7%
Cash and Equivalents
$135M
Previous year: $204M
-33.8%
Free Cash Flow
$146M
Previous year: $406M
-64.0%
Total Assets
$12.1B
Previous year: $12.7B
-4.7%

Nexstar

Nexstar

Nexstar Revenue by Segment

Forward Guidance

Nexstar is establishing guidance for fiscal year 2024 Adjusted EBITDA in a range of $2.085 billion to $2.195 billion.

Positive Outlook

  • Potential increase in political fundraising and spend on television advertising.
  • Favorable renegotiation of affiliation agreements.
  • Growth in virtual MVPD revenue.
  • Successful renewal of distribution agreements.
  • Benefits from exclusive broadcast rights for sports and entertainment content.

Challenges Ahead

  • Changes in national and regional economies.
  • Ability to service and refinance outstanding debt.
  • Pricing fluctuations in local and national advertising.
  • Competition from others in the broadcast television markets.
  • Volatility in programming costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income