Nexstar Media Group (NXST) Q4 2022 earnings summary

Executive summary

• FY22 delivered record net revenue of $5.211B, Adjusted EBITDA of $2.223B and attributable free cash flow of $1.502B; shareholder returns reached a record $1.02B.

• The media platform covered 116 markets and combined local stations with national networks, digital properties and a 75% interest in The CW.

Financial highlights

• Net revenue was $5.211B; operating income was $1.312B; net income attributable to Nexstar was $971.1M; diluted EPS was $24.16.

• Adjusted EBITDA was $2.223B, with a 42.7% margin; attributable free cash flow was $1.502B.

• Net cash from operating activities was $1.403B, up $188.2M YoY; year-end cash, cash equivalents and restricted cash totaled $219.7M.

• Core advertising revenue fell 2.5% to $1.718B; distribution revenue rose 4.0% to $2.571B; digital revenue increased 13.0% to $364.6M.

• Political advertising reached a record $505.6M, compared with $45.2M in 2021, reflecting the midterm election year.

Outlook and guidance

• Retransmission fees are expected to keep rising until payments better reflect the audience delivered; more than half of the subscriber base had distribution agreements renewed in 2022.

• NewsNation planned to expand from 17 weekday news hours to 24 by end-2023, then to 24 hours a day, seven days a week, by 2024.

• The target is to expand ATSC 3.0 coverage to ~50% of U.S. TV households, from 35% at year-end 2022; the standard is intended to support new data services.

• The board raised the quarterly dividend 50% to $1.35 per share starting Q1 2023; future capital deployment is planned across dividends, debt repayment, repurchases, acquisitions and investment.

• Adjusted EBITDA-to-free-cash-flow conversion was cited as greater than 60%, with strong ongoing cash generation underpinning the long-term growth outlook.