Nexstar Media Q3: Political Ads, Distribution Gains Drive 21% Revenue Growth

Benzinga11-08

Nexstar Media Group Inc (NASDAQ:NXST) shares are trading higher. The company reported a third-quarter fiscal year 2024 net revenue increase of 20.7% year over year to $1.366 billion. That’s in line with the consensus.

  • Revenues from Advertising rose 22.2% to $622 million. The growth was led by a $135 million year-over-year rise in election-year political advertising.
  • Distribution revenue gained 20.2% to $719 million. This growth was driven by the resolution of a 2023 MVPD dispute, favorable contract renewals, annual rate increases, higher vMVPD subscribers, new CW affiliations, and the return of partner stations.
  • Adjusted EBITDA jumped 82.8% Y/Y to $510 million, and the margin expanded to 37.3% from 24.6% a year ago.
  • EPS was $5.27, up from $0.70 in the prior year quarter but below the consensus of $5.40.
  • Adjusted free cash flow totaled $327 million, up from $81 million in the prior year quarter. As of September 30, 2024, unrestricted cash stood at $181 million.

Buyback: The company repurchased shares worth $178 million in the quarter. The company announced a new $1.5 billion share repurchase authorization in July 2024.

Nexstar CEO Perry A. Sook said, ”During the quarter, we made further progress on our strategy for The CW, reducing operating losses by $36 million year-over-year and by $119 million year-to-date.”

”We debuted NASCAR Xfinity Series racing in September and WWE NXT wrestling in October on The CW broadcast network to double-digit percentage increases both in total audience and in adults 18-49 versus previous viewership on cable.”

Investors can gain exposure to the stock via LeaderShares AlphaFactor Tactical Focused ETF (NYSE:LSAT) and Northern Lights Fund Trust IV Monarch Dividend Plus Index ETF (MDPL).

Price Action: Nexstar shares are up 2.92% at $188.60 at the last check Thursday.

Read Next:

  • Rockwell Automation’s Mixed Q4: EPS Beats Amid 21% Sales Drop And Cautious FY25 Outlook

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