Nexstar’s 4Q Net Revenue Climbs 19%

Nexstar Media Group this morning reported financial results for the fourth quarter of 2022 that included record 4Q net revenue of $1.49 billion, an increase of 19.3% from the same quarter of 2021.

The 4Q revenue comprised:

• Core ad revenue of $477.5 million, down 3.3%.
• Political ad revenue of $266 million, up 1,307%.
• Distribution fee revenue of $615.6 million, flat.
• Digital revenue of $112 million, up 10.1%.
• Other revenue of $15.7 million, up 0.5%.
• Income from operations was $294 million, down 9.5%.
• Net income totaled $178.1 million, a decrease of 32.1%.
• Free cash flow was $422.1 million, up 27.8%.

Excluding The CW Network (Nexstar’s purchase was completed on Sept. 30, 2022), 4Q net revenue was 1.4 billion, up 14.3%, adjusted EBITDA totaled $661.8 million, up 32.5%, and free cash flow was $458 million, up 38.7%.

Nexstar's portfolio includes WGN 720 AM Chicago.

Perry Snook

Perry Sook, Nexstar’s Chairman and Chief Executive Officer, commented, “2022 was a monumental year for Nexstar as we generated $5.2 billion of revenue as well as record levels of Adjusted EBITDA and free cash flow.  We returned approximately 68% of our 2022 attributable free cash flow, or a record $1.02 billion, to our shareholders in the form of share repurchases and dividends. Our ability to deliver record results and excellent shareholder returns – including being one of the best performing media and entertainment stocks in 2022 — underscores the benefits of our unique scale, the strength of our operating model and our ability to consistently generate substantial free cash flow.

“Our strong financial results are a referendum on the power of the broadcast model and its ability to deliver audiences at scale and strong levels of free cash flow. Our portfolio of local and national media assets provide nationwide reach on par with other broadcast networks and local activation at a greater scale than any other broadcast network owner, creating a differentiated and attractive value proposition for advertisers, brands and content owners in an increasingly fragmented marketplace. We are focused on the continued expansion of our capabilities and leveraging our linear, digital, mobile and streaming assets in new ways to deliver new levels of monetization, growth and shareholder returns.

“Looking ahead, 2023 will benefit from the 2022 renegotiation of our distribution contracts representing more than half of our subscribers, and 2024 will benefit from presidential election year political advertising and additional distribution contract renewals. For the 2023/2024 cycle, we expect to generate pro forma average annual attributable free cash flow of approximately $1.25 billion, inclusive of $90 million of attributable losses and associated tax benefit from The CW. Our strong free cash flow enables us to not only increase the percentage of capital returned to shareholders in the form of dividends but also continue to opportunistically repurchase shares, as well as reduce debt and pursue other strategic opportunities to further enhance shareholder value.”