NXST - Earnings call 3 2023 | Nexstar Media Group, Inc.

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Operator

Good day, and welcome to Nexstar Media Group's Third 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.

Joseph Jaffoni

Thank you, Shamali, and good morning, everyone. harbor then safe into get the call. the read language, we'll and right I'll comments management be made call and XXXX. Private statements All by Act Reform statements for of of historical Securities statements Litigation other during of fact forward-looking may deemed purposes the than conference this Nexstar call. forward-looking to risks from differ uncertainties cautions those statements statements may that reflected to these subject forward-looking the made materially the during cause that by are and actual results

uncertainties, and December please Nexstar's additional filed details filings risks For SEC. undertakes for Commission result it's information, With Sook. ended these ahead. to on with CEO, to or otherwise. report year Perry, with Exchange Nexstar XX-K public my events now no your XX, see Form of Nexstar's and and on go annual as new subsequent obligation the and update any the host, the as or the Securities revise conference that, future Perry please to forward-looking pleasure turn statements, Chairman over Nexstar a whether XXXX,

Perry Sook

our Chief will for as Gilha, Operating and Carter. and discuss CFO. earnings good Tom to and his Lee Officer; you joining call, Mike in Also final questions who as appreciate listening all morning, be call me is our We on here everyone. today are what Baird, President Joseph, results. the third us well today quarter Nexstar's you, available With on senior Thank adviser,

developments, recent of financial and summary followed Mike's a highlights Lee with and start Ann's operations by I'll review. review, then

our distribution revenue advertising reflect successful Nextar to third net well decline as financial as the in year-over-year related DIRECTV. the with negotiation political primarily results quarter impact cyclical

but are expectations. its with network negotiation was with and pleased agreement reached internal all tough year-to-date an that that and partners. a reached to we a and "business ultimately, were the Nexstar was as our distribution recognition of value for and which completed for consistent XXXX both renewals agreement was other The our sides, usual" It and well manner all brings agreements as us, partner in as

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events. additional you facts going some to Today, perspectives from provide I'm recent and

record First, the and our of disciplined flow the execution our for on term. Nexstar's strong business operating approach strength of free model managing the consistent cash towards predicated generation long is and

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with most watched for to highly they distributors network their plus broadcast need time who a customers watching. the equals local content us the provide must-have local news and So the engaging content spend content most

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begets time sports distribution on. grow audiences which creates the significant content. local their organizations This maximize our other and of the only spend reach is audience which amount preferred This broadcast where local engagement as news and revenues looking to on franchise begets and with seek out a cycle to and amplified viewership, local and medium, virtuous value, on our by

receive model on significant match cannot of to The sports affiliation they widest League content, the which broadcast networks affiliate benefits and the revenues extending fees, their the advertising audience by Major reach including enabling them maximize their own. to possible

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distribution expect for net up our we So revenues grow I'll come contracts and as just negotiation renegotiation. reiterate, to

Shifting to economy. our a gears for moment

weakness Our as core a improvement of television national. revenues lead quarter quarter, second the seeing from impacted improved third market, front in by We're advertising be this some continue decline and rate to view trend by on to sequentially in environment economic fourth than secular. improvement continuing impact We more less anything would see date. this a the as typical or in cyclical we're to the quarter we see that rather soft

and flow, our continued by in remain we're accelerating take cash to our generate free our where We significant model mouth confident our activity our and putting money to repurchase business ability is the stock, which almost long-term of we during was million September. our half our our $XXX for worth of low third executed shareholders. quarter, of price stock benefit of advantage In repurchased the

program, program, authorization repurchased December the continue And outstanding we strategy. on XX%. XXbX-X Year-to-date, of $XXX be to started have million our Subsequent pursuant million have to repurchase quarter end, left to since we reduced in our market by a to XXXX, when we execute shares $XXX to the over we and over our stock. continue repurchase current we XX, on

Looking on bullish remain with ahead, the our making Nexstar's initiatives. we about progress future growth pleased organic and we're

accelerate major its time news network We the position expect our from NewsNation to network. audience a and established has prime news cable growth here. fastest-growing now as only modified in remains

so this coming up exciting later tuned. We have announcement stay please week, an

WWE moves will the audience, to scarce the profitability. CW cost resource in saw you from as and to the we And operation our yesterday, we've football unique season. ACC year Since drive leverage now towards more as reduce increase as with of we begun basketball. you ago, sports upcoming overall acquired CW Mike the addition, In programming for compelling network network X broadcast announced making hear and joining is Next, CW already and rights of secured Golf, later, the Live the have which

we related content, which the join airs excellent grow CW scripted programming unscripted of Series in on XXXX, we're advertising setting of The will stage inside nights. currently NFL, have Together the and and NASCAR to slate entertainment with and Infinity ratings, also Tuesday distribution. for our the

a ACC to been of advertisers positive, the new have At the positive year CW attracting football very network. on ratings

our prior quarter, the and improvement CW's renewal by completed losses over of cycle, several progress the Spectrum with course, for test from on a developing addition, owner's we on case $XX working year-to-date the use. reduced development past continue we've at partners X.X affiliation In this an performance. over the CW business And recent APSC was prior million potential to the cycle make

grow unique of linear better And to we've leveraging scale portfolio. Finally, and advertisers we'll for our of to ways majority has believe ads revenues to discussed no and a beginning as national of us. television in before, there's assets, as be Nexstar sales efforts our our we one XXXX. We sell look than portfolio bringing the digital in-house January

of X as local local the Together country over This markets the a top with XX as ability in wide by advertisers markets X/X of national to effectively XX but television margin, portfolio us our of DMAs. offer largest partner the covering the our including we also stations, the top broadcaster key well with near activation alone. just XX selected provides scale reach, are

our Antenna strategies properties ROI advertisers with Hill, that, we package engage CW, and the NewsNation, mass for to TV scaled Adding go-to-market critical excellent our to clients. own national The have advertising [indiscernible] of and our bespoke

measurement identify at we discussed a measurement last should time, be strategy, execute is margin better than sales or provide on working continue the partners, to outsource if we to revenue able which piece through partner and we we to to need the of data can our we're the Over call, a more efforts. next-generation our national we on As generate key our this process believe strategy. us

our during which benefit the a 'XX the political strong. of XXXX remainder being 'XX expect be will to we a successful the term, and add contracts of year year, distribution of particularly benefit Nearer renegotiation and from significant will

Mike, the who over us turn to mid-August. call going I'm to in Now joined

at capabilities perfect Sports, His having overseeing business As last broadcast served News Operations of affairs relations growth affiliate Fox content multi-platform distribution Corporation. to and strategy brings call, is seasoned support FOX's veteran, Fox objectives. television the a our as Entertainment and recently most Fox Mike Distribution for we complement Nexstar's discussed President Fox on and experience

over turn all said, So with to that of me the let now call Mike.

Michael Biard

morning, everyone. good and Perry, Thanks,

would my have on what here, Nexstar brief respect first I have I thought why join it is I and Carter, Nexstar. tremendous with team, here. predecessor, the and Lee helpful for accomplished be to inevitable Perry this chose Ann comments some including my earnings Given start Tom call to

a Nexstar's my record of provides become assets career, business. reach scale watched mix performance and than anyone a powerhouse the Nexstar's and in shareholder returns. to of of at course exceptional scale I've financial media both the national activation true Over with local media greater Today,

positioning was and I something was to Fox could leave me at and what motivated significant and believe and the business the join Nexstar's I Nexstar player What in the growth potential happy the any industry, to in over which it in been so to I pass than opportunity very the more not while not to participate sector. the term, ultimately the achieve building company come is uniqueness has of the And give other was to medium long looking team up.

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and company's my business We of upside stages experience aligns are into executive in CW. unlocking early can with of and to at years network and the given many expansion the I This meaningful the what directly table, my background the in the of NewsNation bring FOX. interests the potential

Americans bolstered served material. the convert Centrist and and strong move will the of know I news by genre of want capturing well viewership opportunity feel of is be NewsNation large the and to audience news options. growth existing the not WG as of do majority The comprised in fact-based firsthand, in polarized journalism The the America, news cable who the by

will immediately rare distribution And stations, that when Nexstar weather of CW wisdom the Vertical the broadcast I bought affiliates, a pivot agreed and of and the dramas compelling recognized strategy. the the CW appeal sports and integration resource programming drive broad advertising teen-focused from CW, to In to revenues. of growth. content network CW Nexstar's with of leverage

always and enormous We see same as on saw opportunities FOX, in CW. sort shape is are possible taking made the us can shareholders, front businesses a characterized approach early delivering that to of of the the these it at There this consistently I with Indeed, its we at history Nexstar disciplined has already healthy we generate. returns investment free cash Nexstar. that and execution of flows strong by

Nexstar's tenure in I've expect common variety shareholder contexts And of great career. that my taken for we record, future. extend positive Personally, years, and will share the pride I over to my throughout track returns a vision here contributing

in So the financial Nexstar's with today's fired also being running. colleagues shareholders I've the our and of starting call. closely with my with I'm engaging to here coming ground hit and community working next to looking the forward years, about up growth. phase quarters support I'm and earnings

billion in decline from And political operating part of compared the with of stations year to QX The temporary was in billion comparison quarter. removal impacted the revenue $X.XX CW. and revenue that, to prior in of related offset primarily to net by $X.XX by the cyclical year-over-year review. an contract the MVPD let's the inclusion turn negotiations, the advertising

pro XXXX increased dark, forma advertising that and partners excluding the year-over-year. net in comparable revenue X.X% by a time basis, would our revenue, periods were of On political have we and CW

For television advertising, digital group station which year-over-year. both advertising and but X.X% networks, any national revenue, our includes declined our excludes

with last expectations CW, our call. to of slight X.X%, the marking an the of down X.X% advertising. which down earnings in shared consistent was XXXX rate decline second the core performance the due advertising on from Excluding we was national quarter, is improvement This a reduction

station by flat. advertising illustrate television exclude the market. large better, peers ad markets, presence revenue We advertising markets quarter of continue were be bit to XX do, more have core to national would this in top in To station if to and the our been as many for which our impacted tend networks like digital our revenue our include we a act

large in a in entrenched identities achievement market and local some are brands communities, is best significant stations portfolio the which true stations our with profitable of our top Notably, most in DMAs. and their the

#X station CW have Los throughout For news KTLA, news example, in WGN, affiliate or in consistently #X the #X day. and independent rated an morning rated Chicago and the Angeles a

with in these partner an looking affiliations organizations to primarily professional ideal expand markets presence leveraging only CW by broadcast can their larger strong sports our audience us that addition, makes In reach for the deliver.

its it Clippers with the example, deal through to season. 'XX/'XX For XX air KTLA extended LA September that in the announced successful games tariff

our continues trends favor market addition, to these the advertising remain in markets in In the larger as recover.

saw rate year. are quarter modest we part third what to improvement advertising seeing in displacement due In to QX further in decline television last XXXX, in versus our QX we core the of of of overall political the the

for CW top-performing comparison were the auto the repair our home Excluding manufacturing. and quarter purposes, categories in

XX% pleased automotive, maintain the dollars to for of XXXX. consecutive advertising its QX are over in growth largest see our spent trajectory terms category increasing We fifth quarter,

and spending inventory We are the below encouraged is headroom XXXX of remains believe continued have by this overall levels category, there rebound and continued that levels automotive given automobile rebounded.

for cable bank X/X in savings decline most radio/TV betting, newspaper, the medication quarter. responsible drugstores gaming, the The revenue category paid sports is core with and investments, advertising were programming declining about of categories

Turning cyclical revenue to political. third political advertising reflecting spending. Nexstar generated in of $XX decline million, year-over-year year quarter the election

to we in XXXX about political our cycle of prospects local with projections including growth advertising billion broadcasting. billion XXXX, spend Vivik's-Cmac for in for Perry optimistic the As mentioned, $X toward election revenue expected go remain $XX.X

extraordinarily both Given our XX% of dollars, extensive well footprint covering contested are and elections, share to over locally nationally. we take and positioned

local in capture Congressional President the broadcasters Dan cycle. advertising recently "When share that, our ad political of election that our dollars advocacy, is view of In the super and efforts." foundation comes continue the Konstan, reinforces XXXX to will Republican largest fact, packs and of all Fund recent the broadcast from the leading commentary stated consultants leadership our it to

going and little point. dessert." stake out Streaming Democratic campaign, saying, picture the is a asparagus, but get Dave President to the entree. is Dave painted consulting clearly radio analogy and vegetarian, is you an a "As are of digital firm, broccoli and his On you're Main side, Now the Street not broadcast solid his positive with the equally a political Communications, dinner, Heller,

renewal with successfully during on completed agreements our partners distribution up period. quarter, the of In third we our all distribution. Moving to for the

the XX As outcomes was long-term stated was with are market we that with DIRECTV And longer of justified know pleased those we into the while negotiations. earlier, disruption which Perry expecting, extend days more than outcome September, the approach. the than

prior the where to way, on the was deal on where versus we period was significant. ended another Said the we based were dark up going dark ROI

CW affiliation the all completed side, Network. we including agreement deals, network On and with affiliation successfully my FOX,

virtual by or related quarter the DIRECTV the subscriber certain versus stations agreements $XXX stations on Nexstar's continued million MVPDs distribution in for approximately the impacted terms to of of was escalators, the year. of quarter. partially prior inclusion decreased CW. renewal continued the The removal ongoing representing aforementioned Distribution growth X.X% in by MVPD and revenue of our negotiations MVPD by distribution and days removal attrition, from partner of and more on million $XX primarily half third base, XX improved annual than rate offset in XXXX subscriber of revenue and revenue

Further revenue revenue excluding and partners where would comparison distribution declined XXXX, were the have X.X%. purposes, our our up CW, from would periods distribution X.X%. been we the dark, Excluding for have

was the CW, independent the low attrition digits, CW YouTube in stations carriage Subscriber of addition increase markets. our affiliates impacted new the in MyNetwork by TV on single and large in positively and TV of

continued the revenues, the Nexstar assuming disruption our distribution removal expect MVPDs quarter, X net service large for up from the excluding to in partner forward, and in be teens. high distribution be mid-teens up revenue to no we Looking and stations for and stations of CW quarter QX

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

digital increased CW, the X.X%. Excluding revenue

the of the touching I opportunities which said CW, one company. Quickly the is as exciting on at earlier

term including long affiliations CW live the in network Nexstar for relationships, And that mentioned terms the and dollars. for we're profitable stations. in content CW both affiliated performance investing fortifying most sports in on our broadcast our matters that by of acquiring viewer, of and the to margin gross we last more call, the As stations are

television engagement for local to the sports highest of which announced Football and deal bases for streams. NASCAR, broadcast to and in organizations major with ratings drive to demand has organizations WWE demand attendance ACC fan starting providing distribution in from to just agreements number while return exclusive Basketball; That into and and wise is level on XXXX; There XXXX; broadcast us carriage for sports a and including deliver strong also our XXXX. their in will enter television promotion Golf, NXT the allowed revenue ancillary Live at

CW to the proposition we viewership of to value affiliates the expect which and All of drive help and distributors. our

And engaged partnership, over our that full advertising early the first new Subaru successfully XX on for ACC, ACC sponsor. where presenting seen of strategy returns and Verizon sponsor the halftime we season with we've as partners the including as

college XXXX. Our ACC and versus football in game viewers total Saturday network was XXX,XXX Cincinnati on broadcasting watched the the Saturdays most since pit, delivered began first

out men's to schedule night women's same exciting Notably, aim, the is season. by December a in remarkable ACC achievement the on the of XX basketball right CW on beginning football we by games with NBC's followed ratings demo begins never Tech, football of featured on many X. Beat X%. with This headers come the double big and had X during Saturday any more on forward, ACC Duke schedule the looking gate marquee afternoon to our games And Miami, Sunday That college participant kind. adults or for Georgia in XX released network that for a Noted Saturdays sports with visiting XXXX hosting Final

Sonova the quarter Crossing inside while programming, fall FitaSurvive, and Spencer the among wins including Kitch, other during NFL, new Sisters, others. several Swarm, Sullivan's notched launching CW the

viewers. Mist In X as million which the over attracted for served patent, home addition, the CW exclusive USA

were CW for quarter able affiliations improved Paramount and previously were Sinclair stations Hearst, to that Gray, As a the from affiliations negotiations and we date, to we and our the transferred no result fee. with affiliated on successes the owned CW with affiliation in paid CW terms complete of

against executed remarks, in Oklahoma the to I stations, group we several weeks. more the of the successfully Additionally, CW outset our both be Francisco, station network Tampa, to with the coming strategy Philadelphia, affiliation in San and City announced billings benefiting by transferring vertical mentioned at my and the Nexstar

and million primarily revenue of quarter, In Year-to-date, of reduced $XX million of And onetime losses Ann? adjusted and the loss the by loss, million call in comprised QX. of my the again CW the from with million improved pleasure $XX versus of losses EBITDA track for This remain CW the it's Lee reduce generated we the expenses restructuring excluding have turn $X.X remainder million $XX XXXX on that, in losses sequentially the company, $XX Ann third the predecessor of in financial we to and over next breakeven to toward to review couple the Lee years. update. charges.

Lee Gliha

Mike you most you, cash attributable the of given CW, of guidance review this good adjusted revenue our flow, the and we on everyone. saw and comments on a will with Mike, the details EBITDA Thank on expenses, provide I side gave morning, the along impacts so quarter. and some free

reliance at NewsNation expansion variable revenue third write-down part by calculations due and costs well to quarter expenses, inclusion of programming the news further reduced direct of excluding on SG&A offset offset costs and EBITDA assets operating were flow and and promotion increased the NewsNation costs of the to as related reduced adjusted reduced in at increased health lower and content. by syndicated affiliation news care local free even our related primarily in and $XX depreciation cash to fees, costs, programming amortization, as in Together, million, our of Increases and CW. compensation the expansion

$XX compensation QX million XXXX expense of QX third was and $XX XXXX million prior of to noncash noncash compared XXXX. million the including year in including expense was $XXX versus of million expense the compensation the CW. primarily amortization million, in million, the total $XXX to quarter corporate due approximately $XX of acquisition $XX depreciation quarter

of are our as item rights. cash this EBITDA amortization in broadcast accounted for of adjusted and costs, are programming included definitions flow CW's free which Please note that the in line

investments received the represents the Network, from amount, schedules our For ownership quarter. release. which more a the prior related distributions year XX% XX% primarily earnings to in million decrease to from refer our equity TV We in on this please information Food in $X QX

amount lower advertising distribution TV reduced to Network tax-related revenue. Food reflects primarily Food TV The Network QX is distribution. lower at Our income related a from

EBITDA consolidated it putting So was all XX.X% million, a adjusted together, representing $XXX Third basis, margin. quarter on a

Excluding the EBITDA representing third quarter was million, a XX.X% adjusted CW, $XXX margin.

in CapEx million million our was versus proceeds Year-to-date, to $XX none CapEx last last insurance $XXX year. associated $XX quarter million excluding CapEx and quarter compared we was with a received Third with line small of versus have million the improvement and funds tenant $XX million To in year, expectations repack. date, of $XX third amount last year.

Our our those CapEx proceeds, we is not into insurance net plant. physical of but reinvest proceeds back

So proceeds of million CapEx insurance was last includes carryover year. $XX CapEx and of net about year-to-date million $XXX from

the Third net $XX the increasing million to from SOFA to quarter, rates year was due higher increased quarter $XXX quarter for to given yield interest Cash $XXX million slightly than the our expectations interest impact expense floating applicable prior curve. our debt. expense million higher rate of in an

was free quarter third cash $XX were free quarter all flow cash the XX% And million, Third adjusted to that flow third together, And million. amounting consolidated putting EBITDA. quarter million. attributable cash operating $XXX $XXX CW, taxes of excluding was

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

Nexstar's before a CW, tax use excluding purposes. tax estimated rate XX.X% we amortization taxes, depreciation [indiscernible] is of calculating the and cash other for onetime book deductible XX% For tax about only when our and

full and carryover of CapEx CapEx earlier. the fourth million mentioned currently the are portion I last projecting year, in We quarter from year million including for $XXX the $XX of

chain the million $XXX by CapEx resolved excluding of proceeds $XXX $XX this effectively improvements Approximately supply last have for and CapEx year. insurance year figure million the which $XX million to due is and million was from reduces carryover $XXX which delayed to TI of year, the funded issues, and million,

for year, Nexstar's expectations We the our reflecting $XXX forward approximate to $XXX quarter and debt fourth expect million cash full repayment. million for curve expense interest and current for the

attrition the result recent interest macro $X.XX a cash subscriber annual attributable end free of of to of the advertising, billion a high guidance to process only As around and $X.XX the events away This XXXX billion, view flow being trends on average in range current and are prior of XXXX mirror. the a XXXX year-end, rearview budget our of and top at the few we weeks range from of to formal consensus. our with reflects

Turning mandatory quarterly Nexstar's September and made of balance down sheet. $X.X at well as the to CW $XX and XXXX, September is our of Nexstar, we X.XXx, the XX, the quarter ratio lien our was slightly below covenant at was as is we for first payments such, XXXX, outstanding net which Because billion, -- first excluding CW XX, lien covenant only X.XXx. for have debt amortization million. designated

Our Nexstar, was X.Xx. the excluding at leverage CIW quarter -- total for net end

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

including of of million balance to the forward Our comprised quarter cash end stock share our million CW. X repurchases Together $XXX with or in free in attributable $XXX together million at quarter of cash cash free million, $XX million to $XXX cash was the related we flow $XX cash on returned quarter hand, generated shareholders, XXX% of first totaled we with repurchase flow the reserve. as first pulled of dividends months which, cash flow and and second dividends $XXX million and and

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

us as Someone differentiates recently the significant point out flow our we generate, talk and as to about to pointed cash from which set. much me peer we for

buying day, the value about that long-term of our back is of end to What's we're At this an by and boot. low cash analysis the me near on that Nexstar to the with striking multiple group flow EBITDA trades creating the shareholder stock. end peer

in by As last our in Perry and share XX% XX% shares in by on XXXX. but X over for about more it a it's our the program we at when earnest per -- you since about repurchase XX% reduced years. We And began XX% look XX/XX/XXXX. since mentioned, XXXX, year-by-year basis, year been over

continued share be expect a appreciation. base way continues to we can price growth to our see shrink, powerful and share So this

be And capitalizing what's for what short-term metric we interesting losses includes which EBITDA consolidated those of to of trade even that consider to our you expect our we valuation. CW, into upon is effectively more XXX% the the losses

at If analysts of at 'XX expectations losses the share. impact you is nearly break the CW, of these average the per the multiple of and X.Xx 'XX for that average out their a $XX for look

the generate confluence the headwinds to business, future. foreseeable bullish continue economic ability for and our the XXXX, we about to of outlook fundamentals continue our substantial cash in to be of the Despite flow free

As manner earlier, for the we we long-term it prudent Perry as to our testimony create value to will shareholders. plan a mentioned on believe in execute repurchases continue to that

to his Tom for the for over earnings up call. what a a for Carter few last Tom? lines on to questions, we open turn call the we is wanted Before minute remarks

Thomas Carter

call morning, good with great and and miss last and work Ann, my people Nexstar. Nexstar and everyone. XXth earnings its Lee I'll environment. This Thanks, is

not we've to the the take we to what the As what put to built this on optimistic have back I in could future level. I about team next of business Nexstar is and more look place and come, be

years, as hands over are Ann Lee great CFO. to last As X-plus with you've in you know gotten her the

Ann Lee prior you I As worked to my and together know, may of at not Bank joining America Nexstar. but

time, seat virtually a seen we made. eye on she every been have have history the to long So we has in we've eye decision that over And here, together.

is to as family cloth same end will Nexstar And Biard seamless. DNA And of and friends the I'm I and poured from the into the all this have parts time of I and and going transition been more skill be spend missed. with ready had of have retire wife, to day, that outside life at enjoy the company. scaled the the my Mike is forward. set Mike's in cut has I it instrumental Nexstar Nexstar provider his leading industry as

analysts go positive to friend, years. Thank investors the all, colleague Thank team most Sook And you of you to the question, for for I'll questions. up it -- life-changing and can incredibly for XX-plus up this my you luck with all. best that, our Operator, Perry the an at and to for And to of call and please? open and first opportunity. open Nexstar you, calls

Operator

[Operator of Kurnos Dan Instructions] with from line question first And our the comes Benchmark.

Daniel Kurnos

night. the to and guess in deals the as last for you you said Great you missed that the all, we Tom, them deal Perry, good either we Obviously, just time. guys will done, last maybe listed your be just or Next saw Mike hear Mike, you on call, remarks. WWE Mike. have Obviously, on I prepared

I as like bit or a impactful be deals just deals coming the aspect of late portfolio the don't And viewership. raising asked 'XX. this that to of auger front little deals continue flowing then, about get think expect online positive that degree start monetization you the those more how parts and of board, incremental some on and kind news recently how sort impact as question Like of on kind But I diamond until online. this this do CPMs those across we those come network to both you see different we've of of combination, a the about the broader as I as think to expanding national well guess, color think of time, can the you push. 'XX we just to as cash take frankly, about should I to last to we and local could through? cadence how know but X some deals think the that in gotten maybe flow of well we'd news

Perry Sook

schedule really, and if Well, to be sports mind's in let to the then But acquisition to turn this obviously me afternoons Ann affiliate daypart of is look we weekend when obviously renewal you would participate I'll and night the also that lead-in as of the hadn't, helpful. portion our our Mike viewers were things to Dan, that best the start, we add around deals going are now, if on we've of was the eye, a People the NASCAR, at improvements the color is also want, make And over following we're out out that airs sports go conceive revenue programming which obviously, Each CW the which subsequent entertainment for life slate. and obviously, And we it over and done Live, expanded we discussions, and that our if incorporate obviously, when modeled in we've of were had to schedule. were But the them sports think And a these agreement. the Lee to and our deal. and it's eyeballs. future. night a base to want network tend does us. in providing cadence to has opportunistic been we But our to in that we it entertainment have are ACC, content that distributors wouldn't the new live what sports, acquisitions broadcast. good broadcast love WWE, one make these for of money up value-creating and some of for generate of stay there the

fees, time. the very to So the and everyone at quickly, came had modeled prepared these again, again, to opportunities be move us and money these moved to fast we to over a the tent. increase get has I on these, clip under way CW they we And been think, at rights make

hard. we value-creating tell believe the you and be when there'll hey, stations, level. And we profitability. brought a for assets monetizing had success so for stations local the and had important these this to on and I on I We was, at our sports have fall, summer And It way now the sports. great that hit never we before. scale are local our sliding But assets can mean, network. that local past Livolfon,

participate, at that sports the had opportunity station. or play they to CW was before approach local same advertisers to so to the and want buy never on had to you You able want

good. all So

it that from if a to and -- I think the Lee like. a little turn macro over level, potentially Mike, weaves he and can but you'd let further can go Ann into me

Michael Biard

the deliver that holders out of the that increasing level, for has That valleys we're our CW lining evidence night the and what and the the distribution investing inside fact package carve level the on of the it's a trends in rights saw all in in I little was level at a Bally's their also last teams it telling is up XX-game both we're the with seeking NBA perfectly through think redone national broadcast. to deal. the And just level, affiliation CW news seeing tidbit company deal that industry seeing broadcast. national with at at done being I related is the bankruptcy that with team deals done. only all levels to can timing the add the I'll that kind reach search the and and ubiquitous The the really deals the for being at right applies of at the is local broadcast now. local

we're ownership with to the So and the demand perfect terms being in of that CW well and for able of both at a positioned, at network the our also time. at really local stations then finding the affiliates ourselves leverage broadcast of level ownership

Lee Gliha

said, . of we with just we're line, I say, previously. do. to we And life look modeled And to consistent working forward is this out could communicated straight all we've we've be would said Perry it. on but what never as a And what achieving

Michael Biard

place a to want acquired like a market didn't sports we I the particularly to add those way there's my really into remarks, football fans to had college place thing an mentioned go we to not game in ever opportunity in just the to current the our that beginning like the we I'll difficult first the as have really certainly change never to do that. way the did of it you And prepared a environment, do well, nothing will fact the on next remarkably if to season, would CW, habits, close that where and given viewership we going rights and relatively year. it's

the XX So look kind both we'll sports habit NASCAR WWE, programming viewers but for and of of that viewers of the particularly to us to kind about There's and seen have and to to for look the just weeks station there CW WWE weeks excited you've that level more of network go create with programming. minds the go it. We and to memory, develop announce that kind pattern for muscle the like that. in kind and NASCAR, be nothing of at XX to of that with couldn't

Daniel Kurnos

Lee just helpful. free on I cash ask Ann, Super can it. quickly Got the guide.

end, delta probably I -- on a that. about think the is of than high the curve Just half less rate little at

us You mentioned you some the of any just granularity the other things. incremental give Is can the pieces any of moving remainder delta? there on around

Lee Gliha

pieces Yes. I lot mean, in of look, Dan, number. there's this moving a

I of of -- range. impact the to things. being kind because if of our which pointed being that's dark it's gets a to you addition on it of obviously, to all of get and in the gets out, sort -- dark rate But us expense, its us number and the the part that dark you get together to new put So the interest mix in being of on far lead which can't attrition, about the as too lot partners advertising the market, down there's think

Operator

line Barton question next comes with from Crockett Our Securities. Rosenblatt of the

Barton Crockett

of the to, Okay. kind I little a CW wanted first, bit outlook. on ask more clarity

bought maybe X the when guys the So were we're million. in you CW, to talking being cost losses, which or around the $XXX really the put figure low

the also already you're your previous to Here, but next to of of year, communication. for this that talking being flow kind time months or It's million. some cash net first in more $XXX free excess within you're talking is

give is or it on good better? how things those steeper, but some time color wondering profit more maybe could on that just faster maybe losses I'm return to great. are So is be investment the that you the this that initial reconcile? Is X If and would the

Lee Gliha

Yes.

that a guidance. was we're like the I period be train. part we you're was to figures. say $XXX on of going of never that said time losses sounds low said to We breakeven it would the in never the X cumulative million. the That So

market, free our last on terms But side would track provided us we cash guidance time. of improve we've on of gone especially obviously, continue also color flow I to still that's bit. had an in -- in national since that period are to then, the think some the we a advertising I say, profitability. against

that the You and year that continue over time. with improve benefit profitability we've get done saw what expectation that going to next to we're year-to-date. We'll

The other thing we I own this. obviously, would of mention XX% is only that,

And also to those you we losses tax have So XX.X%, those of that number. and kind which a then at XX%. multiply that bring it benefit by take get from losses down

initially, that's focused. So free on guidance always we're we're cash that when we're flow talking because where a basis about quoting our

of we're I still earnings what that of would and see figures in think terms transparent our like thinking and very about those We've say in very, X those release. we've that sort low you'll in figures about what I we're look strategy to So continue numbers. been

Perry Sook

that if writer people strikes I just in of or that for initial back you of the on look CW. view that content contemplated the acquisitions a to value in the at things NASCAR, network. the as absolutely the value-building None Hollywood want of advertising WWACC writers acquisition was have announced advertising separate X that those the recession, result pull are add all will, of this since creating, happened strikes, we of CW, Live, and

we're on portfolio going So of think X is full first this an took think, I to of. that able couldn't pretty the literally months I advantage been what to sports CW, be and are where and we do acquire rights the opportunity more we in bullish extraordinary, we've extraordinary where I

purchase but because have season because now make The of the obligation around. that out. is to exercise content that goes money. into next the we [indiscernible] year have owners aired So and we -- writers' strike obviously, of moved last believe able to this don't strike lot has That designed The we and former a writers' weren't from things

think parts, of I the on view has our CW lot don't moving but there are So a changed.

able I'm anything, under we've if put in fact, In the been confident given more our ownership. content to contract

Michael Biard

not investment of I'll these work have sort We is make our sort take the 'XX. system, things the right? least you of time, to with with that the the striking then to stations. stations be that in that And distribution will directly of we we're manifested of in the the benefits both and which earliest own on on that of affiliated deals the and Absolutely. now through side, and in and sorts respect to say content just won't operated the at also deals come, distributors see That until being that and -- the is thing

Perry Sook

see day back, not does here, and on to little how said couple react in on these we initially going the in the to said or it how depend going forward And But by we profitability moves name XXXX, a bit acquisitions, We're depending a will whether perform. where a absolutely month, the economy we shows how that with and this quarter advertisers a next path of years network. to a that's happen. necessarily obviously,

Operator

with Deutsche question Soff the of Benjamin next comes line Bank. Our from

Benjamin Soff

One the impact was what in moderate apologize then level you anything quarter if Disney going I might a blackout? at help declines missed talked or subscriber if can or around out forward. still year you if obviously, will but the I the declines the the next it But from deal. the X from the churn at It's think that secondly, are your And guys DIRECTV that you consequences of to from pacing that here? deal of industry pace And see here? think subscriber similar early, continue of this, just the it parse wondering from you views about Charter I'm guys in

Lee Gliha

Yes.

and as people then and attrition of perspective, Disney avoid package more attrition DTC becoming Charter we And are think -- think the think costs subscriber subscriber should trading. DTC up. into it, help offering, rate the and is help you're from deal of up will the services we bundle that charter rebundling we with expensive just So overall also, believe or attrition up seeing that an going more look, I the cost

And these quickly only bullish ability up so that should to how as on we -- then company. and bit said through in of to we're revenue were time. were may ecosystem, parse the we come did every out We the the at the out from impact, of assuming comment that, But partners to quarter, and CW the think call. the you on will we on X.X% in same it distribution MVPD see be basically And the So the excluding of into would time DIRECTV we DIRECTV come very up little also that quarter. know, dark that for I come that the contracts probably over universe. take that impact had mean a that took have beneficial we our dark. we'll a made help that few period in were that been Mike that have of future for would that sort that XXXX, and can the years, happen. the time third

Operator

with next Cahall Fargo. Our from Wells question comes the of line Steven

Steven Cahall

So the just on retrans more and distribution comments.

the in be by the that and would guidance the the pretty it like I much single in third guidance quarter think the digit Disney some guidance you I'm more started of And you'd you high the double fourth excluding on quarter, happened that for range Charter. as extended year to with were bit digit. the if up year. right unexpected just said, for maybe things low math blackout, seem doing the maybe And a

matter if you kind the you Cox distribution risk in some to that done. were DIRECTV I'm if kind helped take that big curious if having major that rate of into, exceeded X you So distributors heading of but the I'm the think, of looking December, and I just of that. deal imply achieve. now I'm wondering wondering and that's set stage another increases done And that would out correct,

on that are So thank wondering foreseeable that morning really remain for future? station the Bros. green the for XX any from I'm larger that's improvement. any the they markets what the Or Are all ad Warner shoots? your one. in And those then, We seeing the just market where market. expecting not expectations you XXXX. do you necessarily will you top ad Mike, think market this in from ad are seeing for any the they're not first color heard They're here.

Perry Sook

Yes.

So I'll take that.

I own are internal We like with think the we're So math year-to-date the been on seeing. distribution able our you've what spot consistent on done, deals that what with we've to achieve that feel Steve, expectations were. that's

your So is I math good that from perspective. think

going remainder have the negotiations, I think into that how just of out. plays we'll see to our

good of really all about that's think there's I the everything know been questions And about really happened case. has I case. been we date. truly that to been usual. as business It's lots feel been the yes, it has truly

in that see numbers. can our You

So that's we station go that Obviously, as all sort forward, think more we out. of revenue. really how as do. to of we'll doesn't lion's just respect that Bros. the I to watch Warner Advertising, plays expect and our have have advertising business With share local business the we usual like

that overall saw terms similar going in seeing I in guess, decline think seeing of second the sense third shoots We quarter is as quarter. fashion We're the from sequentially of we've terms business quarter about, our I quarter. our of moderating. that a in it third in talked in to are rate amount fourth we the again some, the -- we're into green

that, about somewhat in hopefully, forward feeling all positive even So that of we're look and rectifying further XXXX. itself to

Operator

Huber question the line comes from Huber of next with Partners. Our Craig Research

Craig Huber

was I little a your latest again First decline digits. think held that in said sub maybe you in it's it's quarters, Wondering bit guys the retrans period have recent worse. if housekeeping of mid-single What a question. down or question, year-over-year? more

Perry Sook

Yes.

affiliates declines said our period, positively and that and really all low that we new that's CW in for in sub about we got And got few of a also added single carriage current is the carriage for to large Mike as -- So able the and his as really which TV. markets, a achieve, impacted in we commentary, that's of things were well. talked which And by we stations digits. our network my being independent was on YouTube CW number

So positively figures. our attrition impacted that subscriber

Craig Huber

outlook the maybe on local also Can you auto national as what please, both as advertising. And both for can? touch Great. at then the best category, for you level the well on is your the outlook Okay.

Perry Sook

that from mean, Yes. see I Look, are positive growth. year-over-year I perspective, auto we a be think continuing an to

the see us. starting into end getting saw tougher having where period we we I positive some think time factor for year, some a last the we're but comps towards it of of of improvement to continue we're because be that

Craig Huber

against And big any side reprieve fine then had Did you expense the in going with contracts? the at side blackouts. quarter, you network the the network that Lee Ann, your obviously, compensation X of all get on

Lee Gliha

Yes. There's some on impact that, yes.

dollar to make that number been confusion if the was what You have just blackouts, so than would less had want there you side. it there's I the didn't network about some -- have sure that. out comp

Operator

question Our from the Inc. next of comes Zangler line with Nick Stephens

Nicholas Zangler

-- We've of Curious year or wondering been that just if mentioned But of the anything on upfront a period? have the advertisers that's you hearing year. commentary flexibility, demand if release. whether I guys looking about could thing same any year. indicator was if general if hearing hearing in for know for are as a not I different? that weaker this so, leading have commitments bulk this demand for in you that you just or been you flexibility and just softness the XXXX provide offering more additional you're just into press kind

Perry Sook

successful I advertisers We new had upfront. the Yes. Look, on a the added, say I we upfront think, XX mix. to would side,

very We ratings Nation have network a positive being from the impact of growing perspective. a strong News

that overall our Obviously, environment. all upfront upfront great we from benefit be. ended perspective, kind this where So of of of would thought we sort had we is we up a a on not

reports the all But see just can about You that.

[Audio Gap]

add, selling year. growth this were Well, we I'll just

established So But ancillary one we our selling only way in sports. a other probably gratifying show on But upfront, out the in one not the NewsNation we move and bit through to new our to going there with the other. CW properties or new -- the just relationships We're move and market we plan growth players caution, were basis I antenna of not growth want the the are entities upfront. but follow-on and and did the advertiser opportunities. the few was most the then vis-a-vis

effort to of our We be So with hold up. conscious we And market pleased the a in a we more upfront. obviously, than inventory inventory, laying taking there'll we were did where down quite ended robust back the scatter majority well. had

Steven Cahall

Understood. That's provided. virtual helpful. And you that commentary just then the guys on MVPD

shouldn't basis going at what is can extract channel. a the think effectively, Is look or MVPDs differently, that you vMVPDs that we forward, on really you're net suggesting similar I economics of right? simply guys distribution regardless

Lee Gliha

at of I distribution think think revenue distribution saying we're -- revenue. that is, day, the yes, there's I different as end cash lot go the our fungible. is into of what net and And a components our

in So a different money. partners ways make for to our There's for make instructive. money. vacuum And of there's different doesn't really these to looking ways us -- at isn't things sort

And who think we've we being think saying look, our will coming positive continue what able what opportunity our this the peers be said grow was I contracts the in period about as was that more commentary to original like, I for of we thing. rates those that. one do lower and was a there's from our to on net grow to renewal. come last is our up be distribution comment to expect revenue of

Operator

And from of line Research. Jim with question comes our next the Goss Barrington

James Goss

on comp. how you ports might as And affiliates CW is see like would own in And lay I'm anchoring And there you to prime having very things that restrictions might go Fox earlier that what similarities fetch wondering forward? seem are comment to the doing. be you out important time development know about lineup you now the you preemption platform? implementing? I the core to way would one other they're It mimic a stage. emulate reasonable Mike's to in be does the if

Michael Biard

Sure.

And circulation that come that I for a towards with memory play muscle to like overall of I of as kind across led sports the viewers starting historically programming see our actually anchor the think to marquee the by to we from proper increase tent-pole network, the to we're make is out a that and strategy CW there. more is experience, will which say broadcast pivot said to as network away has programming. teen know among mentioned broad raise I not place its been from appeal develop programming the really awareness. earlier, dramas programming

We're our swings what you're across a time really in to just that. think see We're going I So going is prime in disciplined to take board. going some way. the it to do

team will sort we're generate historically. a think, level different a program have and that to a we've I term of viewership and think rule to, but Perry by that than of thumb, and going think and used follow we're try and to base I with seen moneyball, continue broad here sports programming it we appeal going the anchored the of broader

James Goss

do some would maintaining plan a in at there XX% Or the minority point? up take XXX% other interested that seem the Is parties stake? to the you

Lee Gliha

Look, as mechanisms stake that we've acquire them there's for disclosed, us to quick to for it us. call back put to

the future. time. that We'll analyze right there's that for at an the So opportunity in

James Goss

last network bonafide saying. major a And as you're now thing, NewsNation Okay.

on the properties on thinking morning even in it news broad built terms Are on of nightly network might had. your platform the extent Sunday you simulcast implement. CW terms that some the you you of or way going or network in perhaps some You Nexstar-owned other to either

Perry Sook

morning, think evening weekends. affilate morning in in local are -- for has Angeles conversations are and Those X-hour somewhat say revenue about don't for a would successful that. victim necessarily success Sunday there our national show or they're I some of I just trading KTLA, very be with affiliates Saturday, own that interested news broadcasts had that early a We've national. long that are that X- to in trading we going ratings CW and bellwethers. Los

but something to be news connection may new the return of may little getting if reach a there leave weeds big investment that through I'll be less it's of top the the well, then resourced some but a a your programming be the to mean, like might the people at think CWs what's I with in to may CW that, events of on allow or this simulcast them. -- venue, just and markets XX NewsNation, be I in That a to But point, those bit. opportunities at interested kind some big sample that missing new some increase along to of question events that you're the it interest lines.

CW So plans that then NewsNation affiliates put there starting would there CW best local from am sure afoot leave that broadcast and nightly newscast local that stations, the there. was network that. sure for think to local with of again, a successful and plans using this are what's at are I no I their I founded on and and this that -- it And local local. build on have own the not well, I'm because, company

Michael Biard

just add that. I'll to

we News events, in does I companies, think and or really really broadcast network category as Perry a that that whether We've in have news, different the league, that pairing said, the cable Nation the it's big simulcast, put news, the opportunity sports sample. seen whether it's to that right? different network historically like of now the breaking with things different does a put with for CW you

Operator

And over for we of back question-and-answer remarks. closing management session. now the the have to the I'll turn reached end call

Perry Sook

thank All much, you operator. very right. Well,

to like couple leave I'd of up, just final wrap you we thoughts. a Before with

the very discussed we we that future As feel today, is bright. Nexstar

conviction our competitive volatility in not on growth position business in model, going We share in marketplace. prices, our and Nexstar's have do business. reflective our in of believe what's strong The we opportunities the our is fundamentally

executing So we're keep just the going to to delivering shareholders. and

cash billion, last forms over was in the flow dividends XX% we the $X of of months, or XX over repurchases. attributable which of shareholders to million Over share delivered returned $XXX or free

is for one objectives clear myself, a than a aligned value obviously, XX have no with I commitment top And of more long-term set shareholders. as creating am. our greatest the We shareholder for that

for the us results with we New So quarter Year. Thank to again fourth joining report you. today. speaking thank our you look We to forward when all you in

Operator

for your disconnect lines may and at time. you conference, this your today's concludes this participation. you And Thank

Nexstar Media (NXST) 8 Nov 232023 Q3 Earnings call transcript