Nexstar Media Group (NXST) Q4 2023 earnings summary

Executive summary

• Q4 revenue was $1.304B, down 12.3% YoY; Adjusted EBITDA was $411M and attributable free cash flow was $265M. Results were affected mainly by lower political advertising.

• FY2023 revenue was $4.933B, Adjusted EBITDA $1.469B and attributable free cash flow $847M; shareholder returns totaled $796M for the year.

• FY2024 Adjusted EBITDA guidance is $2.085B–$2.195B.

Financial highlights

• Q4 net revenue $1.304B vs. $1.487B (-12.3%); operating income $230M vs. $294M; net income $100M vs. $178M.

• Q4 diluted EPS was $3.32 vs. $5.30; reported net income attributable to shareholders was $115M vs. $203M.

• FY net revenue $4.933B vs. $5.211B (-5.3%); operating income $708M vs. $1.312B; net income $270M vs. $943M.

• FY diluted EPS was $9.64 vs. $24.16; net income attributable to shareholders was $346M vs. $971M.

• Excluding political advertising, Q4 revenue increased 4.3% YoY; distribution and other streams generated ~55% of Q4 revenue.

Outlook and guidance

• FY2024 Adjusted EBITDA guidance: $2.085B–$2.195B.

• Outlook depends in part on political fundraising and TV ad spend, pay-TV subscriber trends, local and national ad markets, affiliation renewals, and TV Food Network distributions.

• Renewed distribution agreements provide visibility for distribution revenue in 2024 and beyond; the 2024 election cycle is expected to support political advertising opportunities.