Nexstar Media Group (NXST) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 net revenue of $1.4 billion, up 20.7% year-over-year, driven by all-time high distribution and advertising revenue, including record political advertising.

• Net income rose to $187 million ($5.27 diluted EPS) in Q3, up from $25 million in Q3 2023, with Adjusted EBITDA up 82.8% to $510 million.

• Returned $233 million to shareholders in Q3 and $590 million year-to-date via dividends and share repurchases, reducing shares outstanding by up to 6.3% and debt by $146 million.

• Expanded The CW network to 54 affiliates, covering 46% of U.S. TV households, and reduced operating losses by $36 million year-over-year in Q3.

• NewsNation delivered strong election coverage and audience growth, supported by local news resources and partnerships.

Financial highlights

• Q3 net revenue was $1.37 billion, up 20.7% year-over-year; nine-month net revenue was $3.9 billion, up 8.0%.

• Distribution revenue reached $719 million in Q3, up 20.2% year-over-year, and advertising revenue hit $622 million, up 22.2%, with political advertising at $154 million.

• Adjusted EBITDA for Q3 was $510 million (37.3% margin), up from $279 million in Q3 2023; Adjusted Free Cash Flow was $327 million, up 303.7% year-over-year.

• Q3 net income attributable to Nexstar was $187 million ($5.27 diluted EPS); nine-month net income was $480 million ($13.96 EPS).

• Cash from operations was $839 million for the nine months, up $22 million year-over-year.

Outlook and guidance

• Expect continued improvement in The CW's operating results, with a focus on monetizing sports programming and upcoming distribution renewals in 2025.

• Management expects increased political advertising revenue in 2024 due to the election cycle and sufficient liquidity to meet obligations.

• Non-political advertising is pacing down low double digits year-over-year for Q4, with December expected to improve.

• Will provide 2025 outlook and guidance with Q4 results.