Earnings call transcript Q2 2023

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Operator

Good day, and welcome to Nexstar Media Group's Second Quarter 2023 Conference Call. Today's call is being recorded.

I will now turn the conference over to Joe Jaffoni, Investor Relations. Please go ahead, sir.

Joe Jaffoni

Thank you, Maria, and good morning, everyone.

the the language, call. read get then just into right me safe and harbor we'll Let fact, forward-looking All during Private other historical this and Securities conference be statements comments of call, than made Litigation Reform statements XXXX. of for purposes statements by Act management may the deemed of

the are call. Nexstar results from materially to statements risks forward-looking made uncertainties the subject by during statements cautions that these that and differ those to forward-looking may actual reflected cause

uncertainties, and December please Nexstar's For future a as filed any additional filings risks details SEC. undertakes for new Commission ended of these on result with report year with Exchange Nexstar revise XX-K forward-looking public no XX, see statements, or Form Nexstar's and on events information, others. annual as subsequent obligation whether and the or the to the Securities XXXX, update

it's With your and Nexstar Chairman now to over ahead. conference pleasure Sook. go to that, turn host, please Perry my CEO, the Perry,

Perry Sook

and of Thank are Tom Lee appreciate quarter Chief on developments Ann's with our today call good CFO. discuss Ann you the and Lee by results. our review and summary With I'll you, President second operational and to today morning, a Operating Carter, and Nexstar's Joseph, recent Gliha, us highlights me joining We Officer; followed start everyone. Tom's review. financial

another way, business expect on exist. are are to is can't and generated revenue questioned linear We into future profit of the the be DTV video question by literally don't linear the the linear the executives calling go model respectfully major media today. of the comments reliant some the companies strategies We away. integrated disagree. Said public of Recently, What made to model have DTC all the XX% profits of media broadcast. video that of

We not for anywhere. to coexist is them with Linear going broadcast expect and continue thrive. to to

remains time media of Broadcast television highest any amount the daily the and largest voting the media decisions. purchasing for continues with consumers most of spent and reach to influential video audience

our Our proprietary sports our news power content partners, content is and by those broadcast of live understand the the widely particularly and advertisers the our audiences and valued reach of media. consumed in

that confidence attributable record supported our thrive across outperforming free In all consensus flow. QX, by extend results. financial continue will further is broadcast to we cash Our adjusted of including revenue, metrics, key model and EBITDA the our expectations net financial

news, for performance management business and reflects relationships strong and solutions benefits our scale combination local our focuses our at Our the model and the company-wide unit of viewers proven advertisers entertainment of sports decentralized and operating delivering exceptional marketing which in on business margins. attractive for

cash the consistent free flow provides invest while financial in to return flexibility our generation capital us to with future shareholders. Our to continuing

$XX.XX shareholders approximately In half per free half million we in year, dividends of form XX% the cash first share to and returned for of $XXX our repurchases, attributable first flow. representing share the this of

and monetization. including the our We enthusiastic NewsNation are our all platforms. for CW and of growth assets with initiatives, that about The initiative of leverage X.X's number will of potential new growth our in-house organic of the ATSC broad a future sales future

weeks a in we the recent optimism is started opportunity years individual growth at top day a which at contract and back company as his the position shareholder this My for to General and including shareholder of into Nexstar's including honor Tribune look XX free to cash and successful ago, a expansion company's Nexstar's and flow And we has realization during retirement continue reflected to end position Media goes highly completion period Carter, structuring, partner by after will as are oversaw television the Tom and continued of and growth Media be my accretive tremendous But XXXX. per the of I'd transactions, future, like $X.XX been for few cemented our Nexstar. and before of the nation's unprecedented local XXXX, XX stock as which friend. look largest he broadcaster. the a year announced company, at and largest share the my Tom The who where is and Tom today. synergy to the his tenure, take was extension,

the our you support a that saying capacity of end goes missed CFO, team the to know years Always Since Tom player, without two advisor to ample to contributed successor. at intention many our retire previously conclusion transition of of and Tom to What had tremendously. he our already appointment so his we've me and ago will Lee will the far Ann Tom contract, transition to be as growth it one he his seamless has as had with this I firsthand, time year. the senior Board his in a identify and continue through of signaling

role our a Biard, President group. distribution he affiliate join and Nexstar and Operations previously Distribution to brings direction News the Chief forward colleagues will content Entertainment for many Mike's former in of the I at Fox spent we as as to strategy, and Mike Corporation Fox and Last XX that this level. match President Officer Operating for and Fox for at Nexstar's his next years take business later affairs over Fox us month, a the growth. team Sports, that energy multiplatform are Mike's affiliate Nexstar's as portion Nexstar Fox of Fox perfect of we knowledge great relations, look known for month. and largest complement good capabilities have my experience, announced experience of Fox Mike and

initiative our Directors. year, our of ongoing approved to At our declassify level, Board of Board this proposal part regarding refreshments, the Board shareholders

for who become in President Miller, stepped of Dennis and of and election us. the the member, and October working Going vacated fills a forward, advertising of will appointed each great Verizon Board Chief our elected Media local newly the and is was in enterprises. rest within former insights for the standing experience will down brings at Board national to Tony a and annually next USAA, Wells. beginning at position Brand member be with Officer landscape the Board the Officer CW He year Network. large Chief XXXX. be deep Board addition Tony Tony he knowledge by And

Tony's the The will which During our leverage of he NewsNation marketing assets some we deployed billions experience our of grow most career, Nexstar dollars country's local and firsthand His for which broadcasting brands. as CW, industry. is largest in further national high-profile the and Hill the the knowledge, footprint, of and benefit

even when we CW about than acquired excitement the to our see that it. on move Let's as is opportunity we greater

our year profitable most have of we our but only terms at stations, on but Nexstar so may this know, year, CW affiliates further our the affiliate distribution to renewals As our last side. revenue not already margins. from our are also through see far distribution and you benefited grow acquisition in stations CW opportunities

will its thesis station we and example aligning of Francisco, the a for the we CW is a just leading CW. In affiliate Our and represents broadcaster announced on expanded operators KQCA operator as CW will Sacramento, announced network interest better the Tampa the week, San and as it broadcasters also Philadelphia which in straightforward, Hearst believe is last that has with network, beginning Hearst stations the for by launch extended And our that alternative CW run, broadcast one in Television, CW us. with that September. affiliation and the had California. new agreement with in it This June,

the such of broadcast revenues. to and of September, properties, ecosystem. investments growth and drive CW on ACC CW the to than LIV content Series Indy, rights will “Moneyball” advertising the making documentary accelerate one and To its viewer, Days we've starting Inside including to the as secured order less are distribution sports sports-related in viewership Golf, X, including In series, to revenue on all which the inspired our football network, of NFL, CW which that year in grow growth basketball NASCAR this for ownership, premiere the of the expected September XXXX coming already at the matters p.m. to February engine we of live programming sports variety XXX sports and are the X:XX and to the a in Xfinity our

in agreements In year the weekends programming. fact, just of these CW XXXX, per live will beginning have XX sports with three

partners delivers the streams. you, it sports our broadcast promotion ratings As highest and will local attendance for medium ancillary tell television widest revenue to as and sports live is their the engagement distribution level the while and best providing to drive at bases fan

to of their when audiences are they the attracted they on generate XX% reasons that broadcast. know NASCAR us was was One greater races that

greater than we audiences in the in with on the demo RSN. firsthand incumbent Clippers XXX% the station at Angeles As our Los where deliver we know, average

reach our content to acquisitions, revenue approach and breakeven in opportunities our XXXX. increase impeding new Importantly, to our without should disciplined reflecting these growth path

Fox, think get number you have Mike time, like us portfolio. to about over If growing team with weekday Biard of with looking we it, the to where CW increasingly the board, want same sports now go. of we and the live its programming And hours on is

fastest-growing the while international for growth driven unscripted. of progress that properties, with the network news cable content confident productive the strike, slate Nexstar by position touching TV, will a in our it and that volume already time. writer was Finally, NewsNation The majority as developed In fall forward upfront being had was CW, with its TV the on and are Hill the with Antenna Rewind standout CW, NewsNation, not XX% the we prime a our hurt May, in

program during the the debut milestone first the marked and Elizabeth very network program, And news proud of addition becoming network's NewsNation We're Reports. evening Vargas major a political daytime a the XX/X of of a The new the Hill we with launch NewsNation. of expanded quarter, ensemble with called programming,

on portfolio story NewsNation topic of strong the the into driving our and the our Whistleblower laser-focused quantifies we're assets, content. record, and interviews on of better that news sales hearings about afterwards. Supporting being viewership the of our consumption broke congressional and UFO the ad with research measurement large UFOs, entered recently the

an ad leadership and local of digital that brings that including Strober, is sales Chief under Nexstar capable bear, we're working both linear, side, force the OTT. national the On nationally and the and Officer, assets of leveraging breadth Michael the Revenue building and locally of integrated to

tools being our property measured. measurement for now, To us sure And recently need and to attractive we we for owners sports issued better and measure to demonstrating is audiences. our rights But agreements, accurately monetize punch reach one-two the we brands. and believe sports measurement same help already our of assets, RFP next-generation right to they're company to current monetize. under advertisers the measure better We're goes activation an how to and national local our better our make end, that

and measure customers. accurately Nexstar. we hope for process, we the partner believe at we beginning just see that will for summary, can us value we're this a to the that a deliver our We scaled opportunities identify help of growth In

We this and have growth that a national local and we that of differentiated industry believe to really unicorn value. assets generate in will are shareholder continue tremendous collection

all me Carter. Tom now over to that With let turn of the call said, Tom?

Tom Carter

morning, good and Perry, Thanks, everybody.

Before been of this time tremendous the to I the operations me thank lifelong in the Nexstar developing rewarding the times good Perry dig allowing of building and experience to and professional friendships be company. for for my bad My has want Nextar quarter, growth I into part at life. Nation business review most in and the in the

make be of the Mike as know air. senior by end here smooth mountain the fire, on or will I I'm year is as sure I possible. and course leave hands. After nice was the very enjoying me Colorado role Biard in you'll that, a joining I cool transition the through company in golf Nexstar, my as find advisor the sitting to working in good excited the

in Something we experienced a quite while. Dallas haven't in

to $X.XX offset to net review. Now and the operating another operating of in benefit television distribution digital and related certain overall. of strong removal due softness The revenues, of the generated strong impact negotiations continued with partners' of MVPDs some quarter billion, advertising midterm by reflecting and performance a turning the political decline. of advertising quarterly quarter's advertising absence of the continued CW our continued to the acquisition of the We also contributed with carriage to revenue decline

station group approximately national digital Core XX% network, television was including CW in accounts rates XX% excludes core X.X% but and decline year-over-year, revenue the advertising local for of X.X% declined any and down driven includes both rates decline of for our national by is double-digit advertising, our revenues of our decline and advertising. TV advertising core the in advertising, single-digit mid responsible spot which of a which

shared we expectations the call. earnings with last consistent on is performance our This

our by market. a XX station like national were more advertising illustrate tend more advertising year-over-year. digital you, include To exclude impacted better our as bit to presence We – have large act continue to station be top for this of to we advertising in if markets, many like core only our peers which X.X% and television would markets, declined do, our revenue top revenue

XXXX, rate the the of second of overall what in we're QX of seeing to political In slight decline displacement in core television to the in part QX our saw due we in of a improvement last year. advertising quarter

growth QX the CW Excluding and dollars largest see extremely in categories increasing and top-performing comparability telecom. heating fourth advertising purposes, manufacturing, in its XXXX. terms auto, over category conditioning, We're were repair for trajectory pleased quarter maintain XX% attorneys, of our for air automotive, the the quarter, to home spent, our of

and we're this vehicles manufacturers have category for continued the encouraged and millions with suggests which the quarter. inventory, most reports in were of decline categories recent overall, can savings fast levels, The responsible investments core automotive medical by continue newspaper, gaming, advertising in to food about and restaurants and category category indicate below spend that is radio, XXXX of the quarters betting, three cable that the bank revenue of While declining sports improve. health our rebound care, remains TV, now and

billion quarter spending. year-over-year for XXXX of $X We election reflecting our prospects Turning second advertising projections in locally we both the about growth Again, share highly year to XXXX almost and for extraordinarily optimistic election Nexstar cyclical positioned political revenue are dollars well XXXX. in to cycle political decline remain political. versus in take generated million, in billion industry $X spend of with and nationally. $XX

the on annual million revenue second growth growth Nexstar the distribution quarter, the delivered by of the agreements terms approximately in with of prior escalators, renewal and was quarterly revenue MVPD improved $XXX driven in XXXX growth CW. another period a inclusion Revenue as virtual our distribution of year. marking over X.X% as the and rate increase well in

the Our negotiations sorry, and growth more MVPDs. the partner offset – ongoing I’m stations vMVPD of to related impact attrition carriage some continued of of with than subscriber certain our MVPD removal

carriage addition from increased stations TV. of and in YouTube mid-single-digits was independent benefited CW, the on the Subscriber our and MyNetwork

Excluding our the CW, was up X%. revenue distribution

to contract, regarding As peacefully in our a ceased our our content providing – enter our seen, July in you’ve our probably on beginning with with into a despite new renewal – DirecTV beginning conjunction July X, negotiations distribution of we efforts them. current ongoing to agreement

those We will provide an update on our next quarterly conference call with negotiations. regard to

million. by our than quarter second e-commerce. to CW digital national Revenue approximately increases of and inclusion advertising agency Record $XX growth weakness year-over-year advertising services digital was in which Nexstar’s and offset and local driven revenue the revenue business, more in increased revenues the XX.X% digital and some

X%. Excluding revenue decreased the CW, digital

XX.X% consolidated flow EBITDA free was second a second representing margin million, cash On basis, million. quarter attributable quarter adjusted was a $XXX $XXX and

second EBITDA. was $XXX quarter amounting XX.X% of XX% million, and adjusted margin to Excluding EBITDA $XXX cash a free million, the was CW, quarter adjusted second representing flow

to it’s and Ann? the Ann update. turn Lee remainder of my Lee financial the call over pleasure review With for to that, the

Lee Ann Gliha

Thank you, good Tom, morning, and everyone.

the Perry most As you always, revenue a CW on and jump expenses. Tom financial I’ll on details results color gave side, and so provide to then the the little of

one-time which of second restructuring $XX with $X the expectations. million was adjusted and all loss, $XX of of charges, EBITDA the expenses million exclusive of In line of revenue primarily million quarter, our generated CW of comprised in

costs in due news Bureau NewsNation the on local to SG&A reduced and content. we our our programming revenue, inclusion and markets, our other the of which of increased million, offset by proceeds calculations quarter were the of excluding operating and further syndicated news free a Washington, the gain NewsNation programming expansion at to CW. flow expenses, variable as EBITDA reduced reduced expansion the insurance expenses. local our related and depreciated on reliance in at well offset to $XX related at by costs to the fees adjusted received back cash for and first as lower asset even D.C. consolidated Moving direct Increases affiliation depreciation Together, amortization primarily and

XXXX million including expense QX $XX including $XX of total $XX to of non-cash compared million $XX expense million XXXX. was of million, expenses in the second approximately compensation non-cash compensation quarter corporate

for was and depreciation flow versus accounted the this free due are item of acquisition to million primarily programming costs, the CW. XXXX amortization amortization in as adjusted CW’s million prior and our note QX Please broadcast in quarter included EBITDA line of $XXX $XXX are which rights. year the that definitions cash of in the

the this to about refer information earnings please more For release. schedules our in amount,

with $XX CapEx our last Last constraints. second chain million $XX in CapEx year’s compared in supply million and year. was by expectations levels the quarter line impacted quarter Second second quarter to were

Second SOFR interest year line the the prior quarter in increasing our expense net impact interest from quarter $XXX rates for $XXX the was Cash our million floating million to expense in quarter with $XX due to of expectations. to debt. rate million increased and LIBOR applicable

taxes to advertising the quarter. cash on in $XX Network received over decrease two tax QX represents revenue. the a lower Second year for Network, our XX% distributions primarily as in lower based in year equity Food income QX related Food and at was related we income payments million investments amount expected tax $XXX Network reflects prior distributions time quarter QX ownership distributions. are TV the at which related Food through primarily from The We TV XX% the TV reduced estimated to were payments operating million the have made. payment from reflected quarter

the expect we and $XX third is Non-cash be on $XXX new full in project for we comp to for overhead approximately corporate actual and $XX given $XX of year year. approximately executive area grants. be transaction and costs for But quarter, Looking in million and based price the overhead stock ahead, million renewals. quarter the to the hires will vary contract the million corporate stock comp and million expected recent exclusive around

tax one-time For a cash other when use taxes, rate tax calculating XX.X% and before adjustments. our we estimated

the taxes, includes is for tax Please purposes. third amortization income for cash XX% Nexstar’s payment. excluding CW, one deductible of calculating tax The and depreciation quarter about note book only

in of the quarter by carryover net million is last including and Approximately CapEx of year, full portion of a funded currently the million from million CapEx projecting insurance year. are proceeds. $XXX for $XX We CapEx cash $X third

expense interest third cash Nexstar’s current repayment. expect forward reflecting curve for for for peaking We shows approximate million debt full our The year the the forward and interest the $XXX in million quarter to currently $XXX curve and falling rates October thereafter. and now expectations

accounted the payments balance sheet. was million. outstanding the of unrestricted as purposes an we amortization to made losses XXXX the Because of CW in designated June for $X.X as XX, mandatory Nexstar’s are our slightly debt have agreement. not down quarterly the for of leverage billion, our subsidiary, for associated credit quarter at Turning calculation we CW with the $XX

lien XX, lien is of our As was Nexstar ratio X.XXx. XXXX such, at first our net which covenant first well only X.XXx, June excluding covenant for CW and below

for excluding C Our at total Nexstar, W net leverage was quarter end X.XXx.

on During to for we our relation outstanding respective the in SOFR our in industry LIBOR provide order to amended the transition mission B’s loan credit to facility in standard terms. from quarter, term

again of years, advertising. to not our typical but return will in but up tick a is to average, grow EBITDA quantum with throughout we we slightly XXXX in as non-political year the calculate on political an debt expect two LTM basis total leverage, which of fall the versus As year,

CW. Our million related of cash including $XXX cash was $XX to million, the balance

which repurchases and million share quarter of quarter and free dividends $XX shareholders of returned $XXX or flow, generated $XXX $XXX flow. dividends XX% For we million our attributable the dividends half repurchase quarter, $XXX attributable share we together with first and million paying totaled repurchasing million of – cash first first stock, to in million cash

deploy consistent shareholder to manner As in creating to commitment we highest a move our is value. forward, strategically the we will that with continue our cash

for financial the the review line the concludes questions. That call. please Operator, for open

Operator

you. Thank

Please We will Dan Kurnos with Instructions] first your session. question. now proceed conducting from be Our with [Operator a Benchmark. comes question-and-answer question

Dan Kurnos

And Mike, the professionally landscape Good Perry, moving Tom, some He a in on around morning. in but great You fill. us toughest called you as your what out Thanks. hire, Great. content of strategy, negotiators wish costs. it’s people in willing respected big obviously of one most Few person AAB the say, broadcast probably best. up as can just are and grabbed earned first it Perry, I on you your know a upfront licensing definitely let thoughts retirement, Tom broadcast has is. shoes give respected, I seen you up from you’ve spend? clearly there. Moneyball spend we’ve to step terms in the bigger to

of monetization could to of So talk just kind the sort through forward? going pursuing kind of and you continue your strategy willingness of that sort

Perry Sook

Sure.

it’s just with which I of consistent into for delivery. bets to if the in just the taking that selling the having we market strategy will us going what was season terms Cup pay out rates the to regular we’re and XX we’re that some the our our sports for weeks and the with right ACC which able make of chose a out gives same of the was NFL take the plan, and the upfront that actually weekends bet think those the thought opportunistic it Xfinity with to Series, to the in And We the matchups smart season monetize risk season versus behind acquisition over successfully we moved was programming on season is jam we’re with whole standing and that these this quickly of some and over regular considered upfront. according network, generally Series, now as that that calculated go length up agreements. reach know the of NASCAR things weekend

a in that on for Netflix. and own not content ultimately be that ends Brad And up programming so, where It’s it’s got Schwartz Dennis together. to channel we participate can backend just financially putting the can like be are the entertainment just backend, barker something the and Miller we

the we some been charging we influences the the CW to programming the the of predecessor we go to what themselves price historically owners have able the And it. after, we that air, paying so on renew that for series And on at put discounts or were pay substantial themselves. were the programming that incumbent

because all that’s couldn’t And we the want. of get we that rights

XX old cognizant upside. divisions, I mandate, network, a they’re the will out everybody’s startup year to The unscripted, that brought exactly run know are they has and participate but a They now is the it’s mentality. all whether they Dennis these entrepreneurs the has in see digital, mean, the folks there. various this So in entertainment, on a mission, opportunity

it’s So I say Moneyball.

do We’re budget smartly league competing obviously the it to we’ve networks and run. got a same as the to X on walk, got crawl, to in and Big we’ve got but do we’ve it

Dan Kurnos

just, know said on you’re loss next call is to the Got kind Tom then helpful. negotiation. update it. ongoing And a I That’s The new going us of tactic.

the half resolution NFL got outages? think you about big how the of renewal. up two guess sub just back a have looming, chunk Perry of maybe these I You of in do Tom, or or You’ve coming year

So has environment anything now? the changed really right given

Perry Sook

in I’m not going which outcome expect we back think the meetings Sunday, able is terms to that August, of air past back, gear. has that having look future were went MVPD our to We and acceptable certain on July historically instructed agreement to here. to end we Angeles with and our college MVPD to you I both reach able you and if be the tell the professional we’re parties. and can been negotiating since and look time predict No, with agreement with coincidentally renewal fully about satellite both company every in Los team years we’ll our in are the significant have into other it’s commercial by that as high an football a that off kicks reach counterparties. I we four

Dan Kurnos

helpful. Super it. Thanks Got guys.

Operator

next comes proceed Fargo. with Steven question. Our Cahall Please your from question Wells with

Steven Cahall

a miss Yes, thank luck you. of want course. the good thinking. you and just just first to kind as Tom line golf retrans congratulations on with echo to follow-up We’ll my lot. well, on Maybe And Dan’s certainly first of

folks in think There you started range there. thought retrans the when the about with what you always year guidance. I are a curious was

think part part cord been might cutting was I that. both and of previous that have of new blackouts

from most a of your huge are of opinion outside But what just August love would’ve us get right think July that blackout is now. to sports, not a of we’d it’s sort how the retrans in around pretty light you So probably and anything your about we you’re should occurring so guidance. surprise to for expected? current context

Lee Ann Gliha

I we would at point fact at that to able Yes. look into in of a I we at take think that when think we a be we the the we has other we guidance, consideration put only And are than blackout. look, we mean, of when now come to we time, lot thought guidance we whole a together, into heck know our that And point. I agreement. take I some consideration in and what wouldn’t know kind point that at say changed

we materially to dark. provide future of sort that’s So nothing we’ll other But as have go that updates there’s changed than on forward.

Steven Cahall

Food does on been and the know distribution, network. then flow and Network risk a little a choppy really it’s a advertising cord provider Thanks. face as quarter-to-quarter historically. cutting that’s EBITDA cash I more cable of And a Group It stable little maybe

sort it prior do there? to you’re or remain the at Just of curious, expect change next from seeing you or you’re any year for what two, seeing, levels

Tom Carter

that notably businesses are I response. same generally factors in I regard. not not are say, they’re the immune they’re some would of that most speaking than national Well, that to any direct we having think more luck

not deterioration, themselves on started just their continue three no we see debt we in the on to one Bros. side, have But modest news as Discovery least Warner most well. necessarily that their might us specifically allocate a and they're there's has of to channels, told the the Food Network, the strategy and resources very deleveraging, is out NOW, doesn't terms HBO ability maybe partnership. So important And which because have but operating the at Food including bullish is to I really to us that with from but new Network are think you of they programming. regard believe, affect and good prove they to discovery

So you perspective. may from see material our results, some variability but the in nothing

Steven Cahall

coming the have But some that grabs, may linear could to then on ask won't linear conglomerates certainly And national networks just networks. some Thanks. networks that specific. you more networks for lot be do just a – find include can just based speculate cable to of Thank suggested that anything to strength include there distribution you. of bigger up fit a have lastly, I M&A? ABC, media about good and think to national the of way CW, possibility the on given generally market kind you in long-term or done the be any having you after

Perry Sook

think networks supposition I or broadcast only XXX% start English with networks, are position commercial of the there virtually Well, country. language and that five that we the operate reach

that's the and strongest. our a is the as local that scarce the link distribution So obviously resource feel special. is chain Obviously, we something partner, in

what say as situational, available but it point at other price, to I which will X. assets exclusion come was relates it what X the FCC, I Big two So, can't a Big X with. what be – would Big totally And top that would not of rule for own purposes CW, the means it network you of is the the network considered at out

would deal We us. be fit it the do possible, be it everything we legally, would but would And right right with the everything. have look technically, at So at for to else.

Steven Cahall

lot. a Thanks

Operator

with Partners. question with proceed Huber next Please Research Craig your question. Huber from comes Our

Craig Huber

your can for Tom, us, plans Great. uses Thank you. for your just or you would if long-term Perry you spectrum? update on alternative

Perry Sook

that think you spectrum, is Scripps. an particularly in and I called it's at are BitPath this spectrum population with the spectrum with unnamed applications Nexstar uses worth its look business but two with Scripps, of unduplicated at saying the if and and one we are we basis. reached of different point, and development different its arrangements, after States XX% assets, United on assets one both going That Well, Sinclair

So, holds HPE. tests – we are in in promise. we with – great in think are And and we have discussions that

uses in the major as a well car. We have automotive the regarding Hollywood discussions had studio as manufacturer with

trucks involved in enhanced where of We is trying are and which is know South any Korea it technology develop BitPath currently needs with also that a GPS, anything, that exists vehicle or that think in where the to like from a know to truck to you services the fleet proposition. provide need UPS location-based that a can to XG is of at fleet a cost fraction XG of news it we to current

that's just in. involved we're of handful that things So a

because work industry, I develop goes agencies I more not your out kinds work, doesn't there rely but the is, on from because don't only in mean stamp receipt. The out, things. an follow the country pumps do your work, if gas they navigation mandate primarily GPS all a Defense backup GPS As to put the GPS things is don't ATMs Department a to car of one interesting time of to think for the that of on

service. ability has And it to our provide to national of very XG the to an preliminary its has transition about discussions fill our reach we trying formal because to industry that So to a And backup. part that been provide deemed as as ATSC interest the in in X.X. ubiquitous mandate are industry of be in

an the So of say terms a in X.X don't parts. power. is want percent app, I is think to leader lot reached it the killer around continue under our out do was X.X Nexstar of the build to, as us to population own signal the we of presence but I with one opportunity moving for there country.

We an the air manufacturers to regulators, investors air. to and committed set continue X.X. the of on think announcement that that before that's both New continue We the the go understand that would We be end important to quarter will of on to York the year. City we're have to and put before markets end hope to about

a lot thoughts on So monetization. of Craig, are the things the works, those in the current – of some but

Craig Huber

of first the Both does revenue? company And decade? thinking you get are might your significant Perry, see end when large of goes for to that at according you material on When front? slug the plan? it what the And really

Perry Sook

will been five I saying – think years. it I've

of So the – the decade. toward five us years takes end into

yet I early counterparties as would characterize proof-of-concept from it think I have revenue think and we next don't but as will I significant. as year,

encourage a uses. the will if requirement we point. will to similar scenario spectrum spectrum simulcast which deployed give X.X signals kind the do X.X will think, up X.X, and free too with on in that will have which others in not for have if have crawl-walk-run again, can us the those whole of it some and one where move I substantially X.X more air, first can that and I quicker think point, ancillary So sunset at beneficiary, the to be Obviously, away get that be to to

faster, front legislative replacement we're XG I move this lot and think folks well. the of But that working a regulatory So, to there motivate do could the as quicker.

Craig Huber

And last could, my I if then near term. just question, more

me again, clear. through go just for Just some

change core was importantly, you to ad for be excluding year-over-year? core, what the more expecting revenue, XQ And third percent CW, please? quarter, are CW, what that Your the excluding

Perry Sook

advertising? excluding was total I Tom's about down QX talking the, what, it revenue commentary in CW think the that revenue, was was – core believe I you're

Craig Huber

Core advertising, yes.

Lee Ann Gliha

also, was advertising Core double-digit also that more driven national national type fact down spot. big decline by lot in that And we've primarily was affiliates a those CW X.X%, the focus. be to rates we impacted of got tend that are by markets in and

rate quarter displacement of part that of lot that the a I of improvement to in political to quarter, advertising year decline, slight television the fact last for overall the and third seeing third core the of we're in is second related a quarter, our of think due because [ph]. revenue there's the to

Craig Huber

guys. lot a Thanks Great.

Operator

Please question proceed Bank. your question. next with Soff Benjamin comes Our from Deutsche with

Benjamin Soff

advertising think Hey bit measurement with much on your audience? you guys, current you the little then elaborate platform, thanks and question. a tools a where issues bit for the you how wondering you could and they was I how And if a undercount is national guys initiative on just could going up Thanks. wondering that more if that elaborate going? are little standing you opportunity see

Perry Sook

baseline. Well, what to on want as you depends Sure. your use service it

metered compare when NewsNation board. interesting at the in the you for look a whole XX%, It's than of and almost to across then count the that delivery numbers markets country. reported we're markets that in, that's numbers, that NewsNation the national just under use north number get Comscore, up is audience If greater and the add often we number Nielsen they in overnight we we the look individual we our to at

undercounting. issue We the have – obviously, measured incumbent what the the using with completely on was provided. an would different So weekend there a experience is which CW sports in measurement provider the iSpot technology, to

And these put our design this all can our that XXth like present want an what have RFP end the expire bring to as contracts the along measurement of measurement lines you we to you community year – decided, out into measurement is so at the for. this of We'd we see we to what saying, to century.

that such number margin with currently greater error operating limited discussing. the and We're is than data of outmoded the sometimes we're

it, under be is One of a XXXX. we're unified best and with comes submit terms incumbent in this be as service pretty So we'll last to than what assets, well assets which selling for of see started company. providers the in company more and It's of for up of they're that go the win. one measurement our is negotiate standing We our may we Nielsen a project Nexstar sales will from calling force the But RFP. write this it basically quick Comscore, to our local one year. turnaround. This all the made invited assets, a what national that try will RFP we three-year the one And and with but this architected

implementing next the then of of will we hold as We it this year, national piece piece we speak in are and the this year. local

customer, The holding population. than the because be on at we out is here is And do we customer scale totally – reach clients, go of what focused it's whether or directly. on activation any XX% approximately local to focus we other company the to can that U.S. the local the better meant agency companies, national there clients

So buy-on do do to the overlay with a business clippers. you news, states want the your We concentrated. you we where can do a did in as a network is deal news can local

at So team, a to with local are or sign that autographs Again, deliver. because our a player the store show at at activation function. you if up NBA local relationship opening hour kind the we're scale. for the an we can telecast, into but a of things Those appear to charity wanted

consumers company in media. more really a we that feel our that than direct in So other that with regard brands we're we and reach unicorn any

our of there. that our the headquartered everybody of every is, it's view we all want national markets, XXX is interesting company. that top sell train So And to is advertisers a there to assets the in one of

broadcast, at you matter of diginets. those a of experts And for develop our broadcast, traditional unified subject digital larger so want the can to and relationships, have is our obviously, and help people the in just OTT, bring – broadcast, goal, cable, day local want wallet, qualify end share earn national to want you pitch a you

going same has market. And so together to everybody of putting so that all focus the that for

a market, volume, few Strober delivered the has Sales. of in are pretty force. the the a doing mean, advertisers in We're process supportive good upfront, middle in He that Head the new in is not even CRO. are is of Michael a standing of we're other good our up story is the that. there. responding. NewsNation of Head out selling and results sales are I XX% So and precious that national very hiring hired our news National of Activation. folks And rough He of XX Local increase But a in And there all Sales very is dollar growth advertisers out market selling the and for

NewsNation doing ask both and and with take what now that I can is on it, and fronts. we're CW you've had the all So grow for

but never So I'm pleased, satisfied. often

Benjamin Soff

thanks. Great,

Operator

Our question. next with proceed Stephens. with Please question from Zangler comes your Nick

Nick Zangler

has non-scripted the years? as shift original the been congrats of to thus assumptions outcome post result faster potentially a account Or a that and to acquisition more coming the which shift in initial on the sports favorable guys, higher content may results, your profitability a sports run did of CW for acquiring far? and to from lead the CW, to here. content that Hey the Thinking the plan accumulated all about a your you've on scripted congrats great plans CW for

Perry Sook

we NASCAR there for size And distribution. closed was Clippers RSNs, only I relationships program long that cultivation bought first we deals on a the context for five with the through made we had at of that I We We didn't us. literally a that in the the the in of sports that larger right that that the began top weekends at collapse and our right would would because say opportunistic the we're time mind's CW. when eye the were the began say with time the NBA CW. our contracts up we of we network wider knew experience that were the at were a and

partner. of the telecast and reasons were team on sports. on very LIV weekends. first time wanted said, live those us. for and at XX%, that's up to our Obviously, ratings you our our prime LIV are Sunday, nights was on told the They time Saturday weekend We the wanted was a and opportunistic one fact introduced the the prime is And sports well, simple I buy air,

recirculate products. can audience into audience other you your and So new

opportunistic, like the starting the over to about we line and would good money where a but And of both them will we about ACC it's NASCAR time. was say that end of getting I all and the with figuratively. made feel deals. CW And lot up, good literally feel for about both now make and acquisitions it paper, I So, on we've just

Nick Zangler

here, Thanks. could so, down recently national channels core revenues that your element And there and in softness of pressure really in a for secular the then broadcast – forward. in I be what’s going available potentially just if an such for I'm would core what channel guess, limit TV, CW. resulting that particular. on Connected for secular is maybe as obviously, to you if could the just to revenues And an acceleration Understood. the view, obviously, alternative this spending X%, reflect potentially excluding wondering,

to... thoughts your that particular, that, Just advertising, think is accelerating whether in on you national

Perry Sook

I wouldn’t try business. too read and advertising cyclical a as much into

us you piece. We’re report, years is talk the our back you hear look most earnings XX I about downturn at if National volatile. went most I economic the National in volatile think and of an mean, and being

and So, the to want change. are Tom, cash see closest I National budgets. buying. customers want the they in things, are see sea you to that but capture cautious to different their register, I that They a amplify But still of just economy see first buying be advertisers don’t share Those pull to some? may wallet. an

Tom Carter

time, a normal to of that’s post-COVID that. and a levels. from heavy of of for been that Sure. cable, a comments I media declining return to to back category I TV, couple years in various perspective, to was and quoted we’ve spend companies information healthcare reflective newspaper, some just top going more back in period of government out in the disputes other Radio, of my of Medical dispute medical to coming obviously, kind and has refer COVID regard categories. with obviously, and and the we’re that started with a been

well. you’ll betting, on already forward big now of I our hit, for and of tough general, think of investments, Texas, I those when and think and betting sports and off savings again. outside some see it in as that take left banking showed Florida obviously, the large a Bank in quarter a there and more California, we’re a first markets sports where was numbers markets in up are seeing a and the on process large approach fewer early those and going states rush measured the betting Gaming number is in case, again, to sports door

the sequencing So performing see they’re as categories, and be up those prior in categories well. can situations levels, dollar really, not the to to may look that some at relative particular why of year’s you if you

Lee Ann Gliha

also, I And say, like national the in we’re think see decline starting rate terms lessening on of of slight side. just to would Yes. I the

goes kind just be to getting you’re overall that in So of seems to is which everything what economy, the back seeing better.

Nick Zangler

there. color Thanks, guys. the Really appreciate

Operator

Our next question proceed Capital Loop with your with Markets. comes from question. Gould Alan Please

Alan Gould

questions your job Tom, the my to taking on Thanks on and dito me let congratulations terrific a retirement. for you and

XXXX, but cycle. comment that I’ll that to of agreement? due distribution no there on the visibility more, take was a you guidance? the lack XXXX the here. Is I’ll the few guidance, because annual of reiterate question, Well, First stop Or can

Lee Ann Gliha

being one on obviously our have we here think a I MVPDs. situation of Look, dark

And this in revisit the as quarter, so of of we indicated. Tom kind next all will

Alan Gould

the ongoing in negotiations, wording, with And Okay. the correct? was specifically MVPD one that that

Lee Ann Gliha

Yes.

Alan Gould

the you will on the near-term impact revenue sports, in that Okay. incremental affiliate your do Or ad investment CW, profits? sports and incremental And this the on any think potentially have does offset fees costs?

Lee Ann Gliha

sports our respect business. CW to material with expectations in the no There’s change near-term for the

generate and we’ve made that decisions, type think, mentioned more to to looking in as revenue Moneyball I think fashion, costs. those Perry those offset the I are

Alan Gould

the was year? how CW question, last this upfront And Okay.

Perry Sook

change I up Dollar it’s the The that, was sports, CW the us. but terms basically again, the the of of you right color flat digits. our are money, to with the programming new reaction not Ann, marker, important And absolute Lee with think, sports overall dollar obviously, rates go volume living, volume good in But upfront, ahead. I and any were dollars up. want an think, the Unit for style performance. prior pretty to mid-single going was more on provide if year. to

Lee Ann Gliha

market Look, down was upfront Yes. the think that I overall. overall

our for I fared think expectations CW that what that line in with business. were has the

increase the the and, we’re to as will end. I on opportunity – the yes the a the then think little seeing less as will And us with upfront because economy also market in come back back that the there’s market more provide sold way benefit that calculated will will think, so continue national they I on scatter hopefully, bit and a us

Alan Gould

Okay. Thanks the taking for questions.

Operator

next Crockett question. Securities. proceed with comes your with Barton Our question Rosenblatt Please from

Barton Crockett

congratulations, at your this wanted just all guidance about great, you. you’re on Okay, I beat but not sounds the help. anything saying a thanks a retransmission. ask to great. point, about plan horse, Thank and for retirement question former And ton your a dead

on You’re correct? the get distribution deals. until you kind Is that wait clarity

Lee Ann Gliha

Yes. That correct. is

Barton Crockett

Or Okay. being idea sports the you the you new fees? there retransmission this the rights about alone? then affiliate cost And advertising for commitments, recoupment yes, on fees of you All give are terms that cover is in right. also sports, thinking the on can an – leverage

Lee Ann Gliha

compete difficult on only fees the advertising, you is distribution would rights not it’s as on for or affiliate stream. a fees, characterize that. distribution retransmission to I without having It’s fees absolutely, focus Yes. revenue Look, what think sports

Barton Crockett

Okay.

Tom Carter

And timing well has out this ACC if about worked the really because this of fall, you X. begins sports it, September think

NASCAR on can affiliates starts in we the proven we’ve to this. So that deliver early And XXXX.

some programming from the time is to able And let’s from something we’ve time at proposition hours and be in XX with given think that hours sports So a hours with order Sunday. take perspective prove CW XX the honest, Saturday something and ACC have to be like NASCAR or appropriate a from from the to then sports we in we’re weekends, got XX value where of programming that sports. that of affiliates to going or to we sports CW out include weeks,

we a to put want significant value that to there’s So improvement proposition forth affiliates. the

Perry Sook

there affiliate sizable will relates groups, of And our is revenue guidance, affiliate and and affiliation I’ll in to we will fee specific, CW we but guidance. be, that, to as the with just in current which been number be add negotiations is it haven’t upside a nor

as the a not We got for the lot and listed affiliate between may all that call. MVPD business. will I of off sell Lee we our buy and a a business, next distribution. increased virtual may So a There a is to Ann of hope MVPDs negotiations. way. now and yesterday, byproduct happen opportunity things down were things, and our sat settle insignificant NewsNation We We’ve and distribution increased the that

lot the of that go baking So into a there’s ingredients cake.

is it a running there’s event, can. into enough change a as guess, I right But of in much know guidance we equation, And and multivariable of if go the point I change we to any variable and guidance update wanted an to company so this and that our equation, that a a in things now, is guidance, there’s things make. thought go our to a lot let’s And the into expect will know not material as it’s don’t deliver, lot we way. that single don’t

Barton Crockett

and that’s that, appreciate good me. you. Thank Okay. for I

Operator

Goss question Please next from with comes Research. question. proceed your with Our Barrington Jim

Jim Goss

All And your into contributions you. thank for ask year, you wonder to be things if I’ll to be you you debates And incremental important economic have be of I step that any Are about XX/X I XX/X? do the doing Might broken these might and career Thank or now going you plans might political successful to that number congratulate doing path you I about again? And to a be going NewsNation network? the a will record right. and talk Nexstar. particular the Tom. you’re take next reputational? the to of

Perry Sook

want year, channel and give to but national we expand. active to don’t Sure. competitors, were as I our our any offered in as the programming playbook last and will will we as those do were as of that XXXX. we be be plan in successful national have And to those wildly interest implication potential cable debates And to

by We commitments will syndicated our X, that’s XXXX because last programming September be will when out. contracts of run the XX/X

the So in XXXX that’s those up in execute for those month. another that will begin model staffing about for And and been to plans yes, have we already already made, we use guidance. here,

the mornings The weekend shakers that weekend, think our us I see Washington. more show panel – the access allow will in So to and probably expand Hill you’ll to movers and

debates. there’s a more that includes plan So comprehensive

We’re doing won Kennedy. with Town We’ve Halls.

And We’re will be prime doing time and with as opportunistically the candidates Democratic on time promoted. available as Republican well themselves to events goes those they us. make and some

we national an national all we level As level service a for find far – make are interruptions money sponsor voters with be commercial don’t Those more. the at implications hour full public a as in as the the might because underwriting interested again, to local that, offered to are unless no for of service debates, them. at any such and or as the debates go, on our the those

side. us to active, political if expect in not more, on the So XXXX be as

Jim Goss

one. Okay. one Thanks. And other

time maybe to you to just for going the with programming strikes or have because you’re the at to redefining there and actors strike? a implications strategic be, writer are do CW, your you’re need but should any Regarding workarounds come what good regard

Perry Sook

We that that and from shows scripted are Paramount were on have network. all in appear four renewed season that Warner’s currently that the planned from shows XXXX, XXXX the we

they produced. get only everything those farther pushed at the that on on, been schedule of now goes shows is are those the programming and XXXX into the further All XXXX, programming and affected least or so produced and being reality is until further pushed that acquired four strike has the already else

our of made the most we’ve schedule scripted going percentage of of a with the the the So as big fall. we’ll commitments that five any networks have broadcast into

We well. also have a which to noisy think bring more I lot profile the shows, reality as attention and will high network

And So some we others of chaotic we chances this in afraid kind when big take tend when to our environment. swings. like are is

So is I us the help do grow hopefully the scatter correct market that think vis-à-vis the expectations, on that prove and will in that well network. that one we’ll our tech we’re to

Jim Goss

All right, very much. thanks

Operator

over There are would Officer, no comments. Chief further Perry back this I questions closing at time. for Executive floor turn now to like to Sook, the

Perry Sook

on quarter mobile ways levering and our on another across monetization in continue drive our focused strong Nexstar entire Maria. digital, and portfolio. to of and increased strategy we growth assets to linear new posted Thank financial results, execute you, our streaming

While to have will our we be is year recovery, performing now, moderating expected well rate contract record-breaking impact in the a interest an what losses of anticipate are XXXX the full are wind very what environment. our political we XXXX backs declining CW year about be and optimistic at we economic as with we also distribution a at to renewals, the

shareholders to the cash of significant while modest value. pursuing share opportunities enhance return maintaining in further flow form that strategic very leverage free to allows of repurchases, dividends shareholder and strong to and Our a us percentage

report and turn I’ll November when today, we us you in for again back it everyone, Maria, you, results. speaking joining quarter forward look to Thank you. to our we third to

Operator

concludes conference. This today’s

You disconnect time. may at your participation. lines this you Thank for your

Nexstar Media (NXST) 8 Aug 232023 Q2 Earnings call transcript