Nexstar Media's Q4 Revenue And EBITDA Surge, Misses EPS Consensus Amid Political Ad Spending

Nexstar Media Group Inc NXST shares are trading higher premarket on Thursday after the company reported a fourth-quarter FY24 net revenue increase of 14.1% year over year (Y/Y) to $1.488 billion, in line with the consensus.

• Revenues from Advertising rose 29.6% Y/Y to $758 million, led by a $223 million Y/Y rise in election-year political advertising to $254 million.
• Distribution revenue gained 1.4% Y/Y to $714 million, driven by favorable distribution contract renewals in 2023, annual rate escalators, an increase in vMVPD subscribers, new CW affiliations on certain stations, and the return of partner stations on one MVPD in January.
• Adjusted EBITDA jumped 39.9% Y/Y to $628 million, and the margin expanded to 42.2% from 34.4% a year ago.
• EPS was $7.56, up from $3.32 in the prior year quarter but below the consensus of $8.04.
• Adjusted free cash flow totaled $411 million, up from $245 million in the prior year quarter. As of September 30, 2024, unrestricted cash stood at $144 million.

Buyback: The company repurchased shares worth $178 million in the quarter.

Nexstar CEO Perry A. Sook credited the record net revenue to increased election year political advertising.

Nexstar has a presence in “nearly 85% of contested election markets across the country,” he said.

The company continued to grow distribution revenue, Sook added.

In 2025, key company initiatives include renewing distribution contracts representing approximately 60% of Nexstar’s subscriber base.

Outlook: Nextar Media sees FY25 adjusted EBITDA of $1.5 billion to $1.595 billion.

Price Action: Nexstar shares are up 5.92% at $155.00 premarket at the last check Thursday.

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