Nexstar Media Group (NXST) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 net revenue of $1.27 billion, up 2.3% year-over-year, driven by growth in distribution and political advertising revenue, while H1 net revenue rose 2.2% to $2.6 billion.

• Adjusted EBITDA rose to $398 million with a 31.4% margin, up from $335 million and a 27% margin in Q2 2023.

• Net income rose 41.3% to $106 million in Q2, with Q2 diluted EPS up to $3.54 from $2.64.

• Returned $190 million to shareholders in Q2 via $55 million in dividends and $135 million in share repurchases, reducing share count by 1.7%.

• Board approved a new $1.5 billion share repurchase authorization, with $1.9 billion available as of July 2024.

Financial highlights

• Distribution revenue reached a record $734 million in Q2, up 5.5% year-over-year, offsetting MVPD subscriber attrition.

• Political advertising revenue was $45 million in Q2, more than double Q2 2020 and up $37 million year-over-year.

• Non-political advertising declined 4.7% year-over-year but improved sequentially from Q1's 7% decline.

• Adjusted free cash flow for Q2 was $78 million, up 5.4% year-over-year.

• Q2 net income attributable to Nexstar was $118 million, up from $96 million in Q2 2023.

Outlook and guidance

• No update to full-year adjusted EBITDA guidance; current trends and political ad expectations support confidence in meeting targets.

• Expects continued growth in political advertising revenue in 2024 due to the election cycle, with significant increases post-Labor Day.

• Non-political ad revenue for Q3 pacing down low single digits year-over-year, with crowd out from political expected to intensify in Q4.

• The CW remains on track for breakeven by Q1 2026.

• Company believes liquidity sources are sufficient to meet operating needs, capital expenditures, and debt service for at least the next 12 months.