Nexstar Earnings Top Expectations On Heels Of $35M Acquisition, Raises Dividend By 50%

Nexstar Media Group, Inc NXST reported a Q1 2023 net revenue growth of 3.9% Y/Y to $1.26 billion, beating the consensus of $1.24 billion.

• Revenues from Television Advertising declined 6% Y/Y to $425 million, comprising Core Advertising revenue that fell 2.6% Y/Y to $417 million and a 66.7% Y/Y decline in Political Advertising revenue to $8 million.
• Distribution revenue rose 9% Y/Y to $728 million. Digital revenue expanded 16.5% Y/Y to $92 million.
• The adjusted EBITDA margin contracted to 39.1% from 53.3% a year ago.
• EPS of $2.97 beat the consensus of $2.67.
• Nexstar Media generated $383 million in free cash flow.
• In Q1 2023, NXST inked multi-year deal with YouTube TV to renewal and extension of carriage of The CW Network's affiliated stations across the country. 
• Yesterday, the company disclosed the buyout of KUSI-TV from McKinnon Broadcasting Company and Channel 51 of San Diego for $35 million.
• Dividend: The Board of Directors increased the dividend per share by 50% to $1.35.
• Repurchase: The company bought back shares worth $175 million in the quarter. 
• Perry A. Sook, Chairman and CEO, stated, "Looking forward, we expect 2023 will continue to benefit from recently renegotiated distribution contracts representing more than half of our subscribers at the end of last year, while 2024 will see strong upside from presidential election year political advertising and additional distribution contract renewals later this year."

Price Action: NXST shares are trading lower by 1.05% at $164.26 premarket on the last check Tuesday.