Nexstar Media Beats Q2 Aided By Political Advertising, Distribution, Digital Revenues

Nexstar Media Group, Inc NXST reported a second-quarter FY22 net revenue growth of 10% year-on-year to $1.25 billion, beating the consensus of $1.23 billion.
Revenues from Television Advertising rose 15.7% Y/Y to $499.7 million, comprising Core Advertising revenue that fell 2.5% Y/Y to $413 million and a 920% growth in Political Advertising revenue to $86.7 million.
Distribution revenue rose 4.7% Y/Y to $646.1 million. Digital revenue expanded 20.2% Y/Y to $88.2 million.
Margin: The adjusted EBITDA margin expanded 210 bps to 39.1%.
EPS of $5.56 beat the consensus of $5.05.
Nexstar Media generated $219 million in free cash flow.
"Our results benefitted from strong year-over-year growth in political advertising, distribution, and digital revenues," Chair and CEO Perry Sook said.
NXST board recently extended the employment agreement of Sook through March 31, 2026. Sook founded Nexstar in 1996 and has served as CEO since that time.
The company's board recently approved a new $1.5 billion share repurchase authorization.
Outlook: Nexstar reiterated a Pro-forma average annual free cash flow of $1.4 billion for the 2022/2023 cycle.
Price Action: NXST shares traded higher by 1.43% at $193.16 on the last check Thursday.

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