Nexstar Media Group (NXST) investor relations material

Regulatory and M&A updates

• Tegna shareholders approved the transaction with a 98% affirmative vote, and FCC applications are being filed, moving the process forward.

• DOJ interactions have been constructive, with openness to new information and a willingness to consider industry changes.

• The regulatory environment is shifting, with both FCC and DOJ showing interest in deregulation and supporting local journalism against big tech competition.

• The next DOJ milestone is certifying compliance with information requests, triggering a 30-day review period.

• Consolidation is seen as positive for the industry, aiming to preserve local journalism and foster innovation.

Post-transaction strategy and synergies

• Additional reach for the CW and presence in larger markets are priorities for future transactions.

• Focus remains on local journalism, with national streaming left to others.

• $300 million in synergies expected, split 45% from net retrans and 55% from operating expense, mainly through overhead and in-market consolidation.

• Most synergies are expected within the first year, with further medium-term gains from facility consolidation and operational efficiencies.

• Scale benefits from the Tegna deal are not included in the $300 million synergy estimate.

Advertising and retransmission outlook

• Non-political advertising was flat in Q3 and guided to be down low single digits in Q4, with local business trends stable.

• National advertising was impacted by programming changes and one-off items, but the overall market is considered stable.

• Retransmission revenue is expected to grow, with escalators offsetting subscriber attrition, and a flattish outlook for 2025.

• Reverse compensation costs are abating as content exclusivity declines, with potential for improved terms post-Tegna.