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

Nexstar Media Group Inc 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 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.

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