NXST - Earnings call transcript Q1 2024 | Nexstar Media Group, Inc.

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Operator

Good day, and welcome to Nexstar Media Group's First Quarter 2024 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, Maria, 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 this during cause that by are and actual results

uncertainties, and December please Nexstar's additional future a as filed any details filings risks For 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, otherwise. annual as subsequent obligation whether and the or the to the Securities XXXX, update

my It's Nexstar's Chief Chairman and pleasure the your go to turn Perry please host, now conference Founder, Perry, ahead. Officer, to Executive over Sook.

Perry Sook

will importantly, exceeded business free another revenue will consensus $X.XX million. quarter profitability of everyone. Financial you, cash President marked and again This our call Lee results our once and Baird, Thank year Joseph, on Mike first billion, be expect and underscore Operating quarter are We distribution good an EBITDA the Officer; strong with recent appreciate followed well $XXX adjusted me Ann morning, summary and first . Nexstar's strong by Chief us Mike's we company. quarterly today's a high our of Officer; XXXX the highlights, today. excellent driven then as to financial of delivered start all-time as expectations to operational and more joining of review what review, Ann's for model. you questions. your Gliha, Chief by Lee start and I revenue get net with record we'll flow We morning, and Adjusted

us. major the Consumers the distributors anchored broadcast the We've surprise in provided bellwether ecosystem. our pay-TV offerings largest X well environment by been by execution, news consistently programming local is generation is the current in to to validated stations. nation's Free value view that bundled the as no are clear nation's financial our the pay-TV as network. returns. X broadcaster And owner is is continued Our that clear by outperformance cable networks, and fastest-growing flow the of Nexstar's of strong broadcast the our of importance and cash and shareholder industry consistently further

and article many which the I recurring has authors recently in it, told corporate to theme But own innovate the to continually disruption, that industry. a the there a that And disruption the review to needs on even and came is subject success, been business in for to grow of across note losers. or companies. been have trade-off Harvard only for their a industries be clear their a disrupt years winners leaders now way pay-TV be between

generate new the companies of to and in these is To a world market which, direct-to-consumer Looking and than because value the it's our by proposition. losses And now of of disrupting date, years generated these suffered, destruction. business linear more our mind, at the majority products, dollars have in business products been digital cap billions of disruption, diversified has of lose-lose companies models. also their X.X profits the media launched linear since seeking industry,

going and across national reach the special our pay-TV As our to industry that for be audiences. to programming, sports as given the been, has see a result, forward. pricing must-have and direct-to-consumer are content we unrivaled bundles, including maximize expect being relies developed always anchored and it programming demand event viewer local on rationalized broadcast models Better and spending with to as all programming

value of virtuous assets, combined returns. to diversified continue and strong including our broadcast the growth multiple financial portfolio national shareholder long-term momentum fuel and The will drivers business, media support of with of strength cycle proposition local Nexstar's to the our

Mike, of the to CW. over those towards over progress briefly me call starting the our owned for on continue with a and drivers, some we're let growth touch Nexstar network we the turning as making breakeven. year, excellent Before just has march

driven operating improve for by CW's over $XX operating first the $XXX by costs. expect in million. And full quarter a CW's $XX The year, profit by programming profit improved to million reduction million we year-over-year the

In controlled broadcast growth that 'XX first continue throughout broadcast CW terms programming year. the viewership the 'XX, where quarters the of And the sequential confident delivered ratings the lineup. positive trends of Nexstar the season viewership, the season, in first we're X will

series to back overnight the night last look CW premiere XX I the if total #X and X fact, had for Tuesday, Tuesday this recent the new performance both the highest in CW ratings the police XX/X of in its most are was and In on seasons. in available, adults to season XX viewers, which

season October year, We're accelerated especially launch the beginning in network well races the of NASCAR on final as airing Series CW next the exclusively of excited Xfinity all X WWE the on X. including as this the races playoff of with the about late launch the for on September this

our have the the CW ledger. affiliations Nexstar added the being To date, on We're of side larger significant the to group CW has the to other benefit we also finding additional of part to led station profit XX station operating which of opportunities for leverage enterprise.

entered been audience NewsNation And doing the as have begun off all has at the work growth has to pay of to we [indiscernible]. generate NewsNation officially

with finale in largest NewsNation featured it of month brings funniest sketch consumer network what a in the network the Significanly enthusiasm funniest surpassing we value news pay-TV one last May on been and event network it. our have of [indiscernible] as of Gosling years, the years on Mike distributors and if as what audience I in curb cable as SNL NewsNation MSNBC you sketches second was, said, XXXX both town Live, Ryan to in seen and news the as hall have the Butt-Head in may in the distribution your their and as Saturday recognize the in series report Bevis it, of highly may the You now CNN Night googled offering. recommend NewsNation Bay haven't is

more will XX/X value that consumers News X get we the of to And when June distribution even on expansion for complete this the year. Nation

revenues signals of this of devices progress or data Nexstar U.S. of We spectrum large for business positioning the also simultaneously. on conversions make developing require amounts to continue moving the partner a this ATSC the owned advanced Diego that and and past to earliest station from will We're goal in following business to ATSC believe multiple surpassing served quarter. our initiative, generated our from X.X population X.X We San by the industry. XX% be applications applications timing from Chicago

systems. I provide think to capabilities us advantages GPS, satellite-based terrestrial if broadcast unique you will, we think some compared where our

In this even regard, technology. are delivery who manufacturers, delivery in are from Internet all looking digital networks, of manufacturers broadcast efficiency we Things gain device auto industry to seeing using signing and data providers the content our interest of and Internet the

joint activities our pursuing new with technology, broadcasters. as our and as business development own ventures through we're commercialize well through other customers To

to our or of able scale achieve where partner X our are with other as Here's of maybe assets to spectrum nationwide advantage X we spectrum. the broadcasters is coverage

distribution in Nexstar renegotiation the of reduced financial significant presidential in our political deliver to year XXXX, given advertising and related year that another confident remain we will losses network. successful the of ahead, results XXXX, contracts election Looking CW strong

continued to platform We're drive maximize of strengths our strong growth strategy returns. our and focused every to on executing opportunity leveraging and shareholder the

valuation current announced as by confidence upsized for first strength to quarter now our prospects our Our growth further of as well including the share in business our purchases. is continued allocation, our and recently relative long-term capital our Nexstar's reflected dividend

me all the Mike let of over Baird. call now With to that said, turn

Michael Biard

quarter revenue. and growth Thanks, Perry, partially other everyone. $X.XX and due year which on net X.X%. to morning, ] distribution our Further to $XX revenue in $X.XX a advertising in compares decline of remark revenue in billion prior by [ billion, slight Primarily quarter, an offset million or first of good increase the and record

distribution the by our escalators and All-time MVPD in stations January, partner X annual subscriber of high due $XXX revenue successful primarily XXXX attrition. renewals $XX in to million MVPD X.X% company, to our offset partially the return on on rate to favorable grew quarterly or million, terms

a spectrum revenue. quarter and As fees approximately for reminder, revenue, leasing affiliation Nexstar's fees, first distribution retransmission in includes revenue, carriage which accounted of Nexstar's aggregate revenue XX%

single-digit Excluding CW the from in stations network subscribers CW, impact benefit other VMVPDs. recent and The affiliations partner of the addition and TV YouTube certain and new of Nexstar stations stations reflecting grew of range, the station our the MVPDs, the of on carriage in low acquisitions. increased the my independent at removal quarter of

digital and advertising, advertising, quarter political television a decreased to year first or year. political last million $X revenue, Overall, year-over-year revenue digital includes in core advertising a which compared reduction year-over-year and advertising election advertising. reflecting core increase by in in part advertising the offset X%

declined advertising customers X% environment. the their challenging quarter, of and advertisers show rate by a impacted local advertising softer slightly strains in market local advertising the a national political, continued market high and Excluding as the interest

versus the negative airing That on us. this is Super less quarter exacerbated Bowl Fox by slightly to CBS favorable was comparison which

side, to single currently abate. We're decline the green slower in the core large pacing first benefit to advertising. the events. audiences local digits quarter improving. to versus QX of while sports advertisers however, see particularly digital much we XXXX, the far, In particular, and seeing local a advertising improvement in are we television And headwinds starting growth we rate aggregated some we in we as are side in So deliver, low shoots the begin national trends seeing as are down continue double-digit on are special to the live from respond as on in

And in to I'm own transition firms sales our representation seamless XXX national pleased sales of all the that we of markets advertising force. from completed our third-party to report

We are in of to asset sales transition experienced, motivated maximizing new advertisers sales our as revenue diverse unique the this array from mix. an creating full generate force, already we best channels across have dividends their while ROI, for ways seeing

services In will at to the together our reach big additional and linear highlight with and recently the advertising better addition, scale messaging. we Comscore television Nielsen our measurement agreements data available expanded benefits are the marketplace to assets optimistic modernize in measurement measurement reach by bring our that with partners' services enabled help

advertising Bloomberg million over million boosted of quarter, ] the that and In year-over-year XXXX versus $XX political. presidential primary political runs increased [ to down the -- outsized $XX by but revenue when during first was Steyr cycle. Turning by

campaigns, ahead mid-teens, full the for Excluding of total was of our XXXX. the X in spending political year. up our was market television the those advertising versus quarter XX% share slightly Overall, market impact in the our share expected political of

of XX substantial weeks the comes XX political before the day. in spending Historically, majority television election to weeks advertising

in season, estimate in for $XX BIA to primary billion presidential muted of over already We're on relatively the March, increased rights. the as despite advertising ballot spending projected. spending fact, $XX In versus seeing XXXX this reproductive issues political such its previously billion new some

In addition, grabs for House in in selection, amount a significant bottom political both our as will assets, factor on spending is up our that line. and control benefit campaigning Senate of are the this driving of the

As on and spending advertising the they the packs and saying proven their has deploy campaigns local lion's goes, politics local help television. know all the them is win media to share of

we last percentage last electorate last As low the Research. XX% X our Pure aged the of on experience election, on to of mid-teens of advertising -- television. cycles, station the in to we on the on call, political over mid the according our to election with overindexes discussed spending garner XX-plus a Based the group audience voters expect in actual broadcast

update. the Ann? of over for I'll Ann that, Lee Lee financial turn the with and the review remainder And call to

Lee Gliha

good everyone. Thank side. the and Mike details morning, you you, the of Mike, on most gave revenue

of So allocation expenses, flow, a I'll capital review with and a free EBITDA of adjusted provide review along our cash adjusted activities.

no a jump for and on over format owned CWs longer an new note to now year, the is comparability release on we issue. so for make earnings quick our since to effort Before investors an easier key it on in, management a is the have focus focused I in items

our reporting simplified have reconciliations. and We our

key We will operating provide data our in you and continue with this call. commentary on to MD&A

was first onetime In to of effort net add related positive quarter we back pension the credits. the in our on out we adjusted addition, definition the stock-based actions create definition compensation reporting others in that EBITDA comparisons last of and better to for impact issued to these subtract a in expenses to adjusted call the noncash to XXXX, our guidance of an restructuring our Please prior sector, $XX year and on million. note changes our based is and

of out free our actual payments disclosures were the in flow losses definition you earnings picture our to for adjusting and pension our credits noncontrolling gives cash obligations referred we adjusted consolidated share cash conform We -- the which capitalized of for adjust partner prior better as presentation. prior attributable flow, year The a noncash previously subtract also of the from to cash software performance. and adjusted of also the interest to with lieu which we to CW, contributions free in release recast in for comparative current think

Turning together. to expenses,

the by adjusted quarter First broadcast [ the SG&A $X first severance expenses, $X programming to expansion the on content to a operating depreciation our due excluding news. and a to primarily included continue offset direct million, included and CW reduction expenses of in quarter primarily by at was reliance the corporate reduced are That by payments due million. $X EBITDA NewsNation ] of in and but the calculation our the and expenses, declined stations. operating increase for and amortization Also above by in SG&A of news transition increased expenses we rights at as million promotional not syndicated in direct XX/X

expense compensation noncash $XX of expense corporate including of the $XX expense XXXX. quarter including was million, million, $XX total $XX million in compared XXXX first QX of approximately noncash million to compensation

and Please was reduction $XXX expenses versus of the quarter, in to programming amortization EBITDA cash of free and the primarily amortization are lower million, a line flow our broadcast CW's due the depreciation prior programming at XXXX for is accounted definitions adjusted in -- $XXX $XX QX million which million this year note CW. included of adjusted are in but item rights. costs,

our refer and to For please in more schedules earnings the information in on amount, XX-Q. this our release

the at We TV XX% Food primarily from equity TV received $XXX Food lower year ownership amount our interest Network, reflects an due primarily related reduced represents million from quarter. in advertising revenue. XX% which in income The prior to QX investments, Network, to distributions decrease lower

The our amortization was million then. included distribution the to amount definition in first portion related the paid receivable quarter $XXX not of last year of in distribution and the EBITDA $X of of securitization related includes to accounts million a of to us the that adjusted

Putting million it increase points in of a together a XXX which of and included EBITDA from from the representing improvements net first in distribution on first quarter margin, all basis, our was basis adjusted quarter increase $XXX XXXX adjusted of $XX XX.X% EBITDA XX.X%, margin an consolidated million year-over-year. an margin

$XX an million quarter the year, First CapEx in first last million capital was $XX quarterly of of $X million to primarily compared of projects. increase to due quarter timing

interest prior the in First higher quarter SOFR interest $XXX our floating to for quarter from increased million expense $XXX was to expense million to the debt. due rate applicable million year quarter. net $XXX Cash rates

First proceeds netted payments insurance of quarter and timing taxes, operating of capitalized recoveries payments. software assets and cash for to obligations million, primarily reflecting from $X disposal

our together, partners And from required reflecting $XXX pursuant contributed amounts this to flow quarter agreement. consolidated cash million to be free During the adjusted cash putting in minority of was the quarter, LLC million. all $XX CW, received fourth we the

$XXX. hand XX, generated an Together net of quarter by on in with X.X%. reducing of hand, the to and cash outstanding equity million dividends we average of of shareholders, in operations the returned comprised -- $XXX million price of at repurchase the vesting the in cash in $XX stock million $XXX from shares on quarter

quarter March Nexstar's our billion, outstanding we million. down $X.X debt XX of for $XX as amortization quarterly payments of slightly was as made the

CW of $XXX our at million, are an with for for balance quarter the $XX CW in purposes to our Because losses of leverage cash agreement. as not subsidiary, associated designated calculation CW. million cash we credit the the of related was unrestricted accounted the including Our end

of As excluding was such, our well our as leverage X.XXx. below CW only XX, Nexstar, of is net of first and lien first as December for ratio sorry, X.XXx, XXXX, covenant -- which March lien

X.XXx Nexstar, at for leverage end. CW was excluding net Our quarter

of nonpolitical As grow typical average calculate during an advertising. we basis, LTM political on versus XXXX and X-year the leverage, will expect as return years, which a with a EBITDA we default

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

questions, back position business the for Before want operator to to valuation. turning thoughts industry and our the frame regarding I call some

of and based get We on of operate broadcast structures the that industry. the continue to questions results, some capital other comments companies the local in

times number of to know While time, and who've I a we very of understand for compare long of desire a has changed. to public the the Nexstar used are relatively around where small those be But Nexstar pack. sector the there in you have been just companies, notes one sector changed for

very And negotiating our benefits past platform over including now was significantly and a we as company highlighted of consistently operational results on. necessity leverage. and the years the built to XX efficiencies or broadcasters. are large we vision demonstrate, other our outscaling We scale, spot the increased so, And continue our

last to risk Just the perspective, of obvious, stating March for generated in XX revenue. the ended we of at billion the $X XXXX, XX, almost months it put

market an of $X.X have enterprise value $XX billion billion. of a and cap We over

Our broadcaster. revenue than XX% local next is more largest than the greater

enterprise XX% XXX% capitalization and than is more Our than greater. market is our more greater value

In billion. a path like $XX Corporation, approaching something which us enterprise has of enterprise an of puts fact, billion our $XX to Fox on value value

LTM X.Xx of end Xs be leverage Our year. was will in the and the the by

XX% on trades consensus a deleverage to we $X.X of turn by half short-term our stock for the flow and around the more cash represents do adds a debt undervalued of a an to free at this have believe could than at year multiple company, annual Nexstar 'XX share 'XX, a whopping that which deliver 'XX decided The all why and and EBITDA for active yield par. share 'XX Yet, secured $XX CW. the average free X.Xx Our billion tangible substantial consensus we and or losses is on we 'XX, been We 'XX cash if only price. flow per aggressively by and which a us a trade repurchases, up impacted return.

We believe there stock. is significant in upside our

free almost it will our Our to we broadcaster, no There and shareholder execution operating capital put flowing, company telecom putting returns. of use enhancement cash media in up and shareholder maximize local and against space. is best we record flow simply gladly to and the every comparable are of returns keeps the

open first question. can Operator, that, you. call our Thank you go With the for to questions. I'll

Operator

Instructions]. [Operator

Our question first Benchmark. Kurnos Dan comes from from

Daniel Kurnos

Two levels or high Perry Mike. for

core the be commentary, of on even with or crowd Just the year. back the hearing we flat core could keep that half out better in

of the So trends some platforms scaled other political, of guys you CW maybe, the you thoughts added, . And maybe on now that and talk about have have some there. really just outside Ann, guys NewsNation, side, even in should just be of growth XXXX. on maybe And underlying Lee thoughts be would then just local, about how expense thinking the helpful. super for political we expense the external

Perry Sook

start over questions. Ann Michael of and on answers to remainder it I'll and your about talk turn Lee to then to provide the can can core political, I

choice, local relates it and as where political, vote of because to the messages the that's ]. those a as business a preferred But deliver medium is to local electorate broadcast as to you you local is [ the know, know, broadcast media, it primarily voters

the XX% we in CW affiliates programming, that the of offer It's it a no and Sunday on they at morning X-day an Sunday ] charge talk and Having if was for additional [ the picking an were out we said their Hill local interested over morning hour-long recently show, to to in and addition. to that, it NewsNation, country. issue cleared we expanded complement up

CW expect political incrementally some moderate will stations our those be do capture having But the to ballot to national presidential are initiatives conduit also we pack and perhaps by But and the that, electric. of with to be do some what money it when will could out NewsNation the that even revenue going political both to dollars race a So do. year. to stations composition messages opportunities states, for the with our far, said to gets deliver think there contribute largest this percentage across we there multiple the and

Michael?

Michael Biard

Sure. does I clear making core, our With that to include respect I'll not it core guess digital. start by

green some others remarks, that, So when seeing current noise shoots quarter. space. about is the there said comps as in my in our talk I Having we with in mentioned you are some

business are about an firms. instead I basis, rep transition in as We national at . time are we for using the have is here national the some optimistic of been an combined that's external force sales. my interest as local offering the level, mentioned we head upfront we inside remarks, as seeing own local in momentum our positive -- historically also upfront our on some launched has sales That upfront model in into internal with first selling the business some -- our not done which of

with our that gives So that is than that scale one us elements way of to market is our different those go to a peers. in the ability

Lee Gliha

detailed And granular unusual usually an sort provided then embedded our of of things, to Dan, we provide in the side previously. that and But nothing have there's happen guidance is that's expense incremental build of that in on or sort going XXXX, we course the forecast. of level expense don't

Operator

comes from Soff Bank. Deutsche with Our Benjamin next question

Benjamin Soff

on a follow-up is The first political.

like expectations said were think that that for of the you a have And today, quarter, it I market. you expecting sounded guys teens increased. last low share your

you're you So you're guys guys improvement you $XXX wondering a the I'm said for think and then Obviously, in a there I that healthy improvement XQ. like? And of what pretty seeing expecting CW, just kind what looks dynamic that saw million

through So could as if you talk well? that just curious

Perry Sook

first the the and one hand to then I'll the Lee take will Ann off -- second handle you. question

experience of the the the in with is to what we mid-teens right QX line in year. low for rest project political on seeing in we're what think I So is the

percentage full in basis what slightly, expect a different. I emphasize from higher, remarks, the And on a and said think really, for slightly I'll year. my with I opening XXX,XXX we foot marginally consistent perspective,

good that. So about we feel pretty

Lee Gliha

coming think the the I just programming you're in starting $XX had We million plan CW, improvement to benefit the fruition. into first of on see a quarter. our look, And Yes.

We for year. expect over million $XXX the

to of and a content quarterly quarter first expenses year. On I hit we basis. the that's bit than . just That's due of more through the quarter. a timing over different the the have the course think have rest of will programming why little some we in just of when those

Operator

question comes Cahall next from Our Stephen Fargo. Wells with

Steven Cahall

Maybe in first, of It of sounds you're on On just being to about expand improve. the some commentary. softer think from different peers I terms starting local, quarter. a to the your in little talking advertising local like that's maybe

was So expand there? what I wondering if could on seeing you're just you

And shoots the you're national. a also in bit seeing different green on

the about So assume a new we if a improvement? the through that's that I of you'll ability some spend, the wondering flow upside sales think at a basis. there that's to broad-based sales or to national your of Then net Is question, talked guiding more Should any you're direct that political improvements same transformation model revenue about since it force in the force? that's using and ad gross kind but just having. have response we on own political you CW if your

Lee your unique comments how Lastly, is. about And appreciate I then Ann, Nexstar

probably You year. the the as the leverage political. be the think in about of strength by you Xs said you'll in end in

even you leverage stock? more of that comfortable wondering some just given if your buy leverage basis with? back about that bit would adding frustration, what a is you're rate think already low So of run And to ever you're

Perry Sook

money the returns free stock. like to substantial And Let leverage buy cash in not question Nexstar shareholders to It's generate We first. borrow our back me nobody to DNA capital flow answer meaningful does. been here.

buyback instituted than X the of less through of our and Our increases, X/X years. annual average ago, we the XX dividend XX% has annual dividend in way since excess in billion we're $X.X years authorization been

and in was quarter. float as of X.X% the So Lee retired Ann reported, the first

return price aggressive, the well. a shareholders. we stock on throttle we Up the think do the of that our think to some on we against would you buy in and marketplace capital any So appreciates. But we back But part weakness always And as calculus. put perhaps and our quite it's I are of appropriately I cover. company the

So back borrow continue fairly I think would buy it unlikely that to be we to money would stock.

Michael Biard

to our are composition, think I the the fundamentally our with to respect question, have think sales with I difficult. bit different, comps particularly -- fellow the with of the some in the numbers think render I large noise markets. Starting with markets broadcasters in the that the on station respect a presence that little some respective we there's

So also I think that combine digital core I fact digital. have that the There's others some -- in the the difficult. products you do. with there's space additional of those They in doesn't some with comps that make been launched our think

sales So I and focus with new before. that I of larger will haven't mentioned say a respect initiatives, ability force, with our way go where really the that's addition in the And the to national the been. we has to to market

initiatives the business the move larger our potential needle the for really have the focus Our at to that is scale. on

across our new it that think selling for So together, about and we all us. both political, the up that we fact channels and of sales force that local is optimistic when national are opens

Perry Sook

bring sales political that advertising at force our mention level we to intend station just the political sell to in in-house that do I'll on XXXX.

of promise year, our revenue all Given the quantum delivered the and dollars to the dollars only the our roll shareholders. we that metrics we we to of hit sure not size to to but expected receive make and transition chose ourselves slow this to on

stations. other sales us national force our for network that force, part But sell I already. any you'll do think asset representing our All our political political is or internally as digital we up stand of see handled all

of at year. this change see you'll end the So incremental that

X opportunity would entire of stop, this these any at year tsunami our not next go think think I time dollars to we I portfolio that we'll this for market point, year, And And At too be creates incremental have early can with benefit. does. to quantify. an it political it

would So the pudding. 'XX see is versus I the proof period in really the next be comparable where think XXXX versus 'XX to

going as we're stations to when market But at early nationally great getting who using but a going. revenue networks to benefit, a our market incremental with using I activation upfront we would the knows as local what is go package, scale the in well our in market now expect with reception unified

are booked yet. no dollars However,

So stay tuned.

Operator

comes question next from Our Craig Partners. Huber Research

Craig Huber

I'll just please. if questions at take my could, time, I a one

share what revenue the And you was programming the us, On CW, maybe first That's there maybe change the of the year-over-year? you're having my talk wins about side? could some percent question. on with

Lee Gliha

would year. We've the going now to no quarter. It's Craig, disclose owned externally separately. say, numbers I a Look, we're it than on a more longer CW for

would good, comparison say, a positive green is the the national advertising I a not shoots. is yet, still in just driven positive not place quite anecdotally, So by quarter-over-quarter despite which . still even -- market, it's

Craig Huber

What programming? the about

Lee Gliha

of to of I of a not has more Yes. kind broadcast some demographic, but Look, of CW broader be the and new quarters seen on the and announce XX sports the X on our we've year. the think put first the focused new programming, programming on programming XX to to demographic on just focused in tried that side, the initiatives, benefited initiatives number respect us with that you've is

bought already season If had the prebaked we you was we recall, when XXXX, broadcast company. for the really us XXXX

sequential had audience virtue forth. So X of of we put XX, prime by time quarters programming growth put 'XX, the we've on now that in

air it. gone we've programming about hasn't year because good year. just well feel be but that the of we yet the the will on the So for it'll continue this do announced, of on think rest later some sports We to

at by looking basis go-forward fairly results. we're as quarter on our this a evidenced positively So

Craig Huber

can are then the just a you my profits how there little going? And question. trending the update NewsNation, about ratings maybe how further give there, are second On us

Perry Sook

financing you network from expansion used program money remember, that we're expense. to as to day journalism go X the syndicated profitable with the The Sure. been because has

transition complete So June will on that we X.

news the time, only in audience are prime fastest-growing reported now We cable of more the are I homes where of universe second or terms pay-TV cable pay-TV of in the MSNBC. network as to either remarks, now total my in in the CNN with terms News network is distribution bulk than Fox revenue cable lies. network And in we the which

was We we that about the XX call reach. have it surveys now, monthly we coverage is the trying awareness stationed coupled that that channel approach. are we is a the our feedback X,XXX and that we think our balanced XX%, audience. problem. centrist not Awareness NewsNation, we're the majority, and the to awareness, the with get moderate the in states folks when direct demo which as journalists around our of will grow XX% the sizable can our is to well be the that do. the more reception We that in So continue opportunity. we with awareness both started country and And on national and -- Oklahoma scene we Right grow the the believe Washington, first assets. the tornadoes serves the that as so stations we or indirect Michigan our more and Bureau can D.C. for the And

We know awareness up All of the of goal, on these continue we our things to we I build and what do sought that other. when fourth and show management senior out cumulatively, team X sanctioned debate. network. content we million any time. think, increase each will my to exclusive point that can focused and was X But have at more like That presidential in Republican the than viewers final is

the no know problem receiving And they that we have so channel.

job interesting our viewers on the that that that majority raise majority awareness comprises to believe country. the we is to differentiated the Now moderate continue to this put continue content and of is in and reaches

Craig Huber

you the et remarks last longer DDC landscape, of term? products TV to the legacy versus all compete products here? And there? my out thoughts there cetera. then, just Perry, I these streaming products In And out how appreciate of here plays landscape, maybe streaming terms can about various question. do state your the there, the you trying this finish think all opening out your Maybe the up

Perry Sook

you seamless to the a for that doesn't will. is And up gone repeating channels Well, one something something navigation, if rebundling I doing, cable And world cable, of basic I we the think the last said corner. corner apps again, announcement of like evidence have still the basically, doing basic you age we to an -- as viewers night certain thing, industry, being of amalgamation the saw what is a change to and in the around do. it's of assets is around we're which has the that further able we've around go

all raising that And the the broadband was streamers think again, quickly a eclipse consumer I of and have, things of are carte navigation seamless So pay of some you'll other the make. the don't or rationalize. see see la can at add services the you an an prices. looks of announcement traditional I bundle think their there cost now I other streaming of pricing and you it cost package they want to the and on,

have the You that choices do bundle. traditional of content a you in don't probably number

But we to we're bundle think our business. reason obviously, streaming can. not continue, just is and the main it's as because partners we'll So don't good distribution a support best we support in the

And not get a it's we to want money. -- that so to business lose into

number the think consumer. so we we ways there reach of And that are any can

the can stream outside that Everyone expand memoriam. been they're trying we've they for I assets in but mean, reach broadcast that of to because wants have over that air there universe, don't are the traditional to free time population. of pay-TV XXX% so

the they the to personal So is same change, more view. more my things look start the

Craig Huber

sustained one profitability quick to early on expectation basis your sorry, Ann, more breakeven XXXX? maybe the XXXX, get for I'm still that CW. Lee a Is the late thing.

Lee Gliha

Yes.

on We anything point our of view . haven't there. changed

Operator

comes Our from next question with Jason Citi. Bazinet

Jason Bazinet

I with Xx or ]. I -- your something quick just really model. down comment to Ann, my to year about of guess I are had political I down you you saying X.X was X leverage. sort [ getting questions. the I by Xs just had just X high in and And handle Lee at on it looking was the struck

Lee Gliha

Xs. the in said I Xs, No. in No. the

Jason Bazinet

In the Xs.

Okay.

And can Sorry, Do CW this anticipate mind your FCCs just ownership your FCC sort my sort second to you the New your do out you all of question, the sort quarter of that missed just you the and position quarter, last City, in how in you station. came extent I I of just this mind summarizing York and between think, of around playing that. about, talking out?

Lee Gliha

mean, put I a look, Yes. response. out we

out a you're that the a like put think lot kind really that an around to it's unvalidated -- response. think [ FCC we It's of the We We the think I accurate. ]. of FCC. are feel request PIC comment by based not we on things referring

a out. that see so believe. is continue response what plays And have we're get we and will going filed and to It that through we take how to we some to process defend will time it vigorously, process

Operator

Aaron question Deutsche with from next comes Our Bank. Watts

Aaron Watts

I if may. Two questions,

with sustained The the your headwind that made Perry that maybe see you in ad-supported notable parallel video a some the of a remarks first, business being to perhaps you've future? with introductions do online, more But today streaming or of offerings for on recent side? the national targeted with perhaps And of already. couple as bringing inventory the in lack your contributing momentum are

partners? And affiliate How dovetail then for higher a fees. that secondly, in with seek network this phenomenon, an headlines. commanding largest with suggesting necessarily share holders but and some does I be NBA perhaps of the appreciate you rights rights audiences, isn't compensation the greater moderating attracting growth viewership other new and sports With to topical commentary should even continuing of

Perry Sook

of got each attempt it with a compensation a The in with number. group any fraction is agreements value X. X a network WWE let years. But us We've And over did different that, those is X-year significant we paying big at the a when our and bar. can we what from But start in of I We we're excess next. CW be for is in turn -- do I'll success then to look the for of that deal basketball. Michael. goes not to with agreements, affiliates at affiliation affiliate sports, might build ACC value deal NASCAR those deal only what Well, a multiyear trying not monetize then further to me our

-- we've Nexstar So CW are hours network -- CW when that which contracted have company, has of our we, affiliate excess primarily made our sports, of largest through about in and reach of XX% talk we flow which XXX stations, country. the the the will sports group, a CW people for over as over

value what news drives creation. maybe live you're to that and by drives queue other sports and networks our laid I way, have live So live mimic done, we've and for by I and think news one and and it think to actions live the we taking either already seeing vision is only drives or is attempting sports, saying industry this, their are but obvious the not the what the us eyeballs, out distribution, we're by that

sports about. think And good The I very that So agreements, pretty been in we in of place active multiyear XXX hours we've CW's that. and feel ecosystem.

CW that season X And and again, so season of aired thing now on of the is has Lives. the only ACC our second far

yet So all programming is to of the big come. still event

approach things So pretty we exciting, get we think fall. get pretty will the quickly into as and

Michael?

Michael Biard

Yes, that. to I'll add just

I to our vis-a-vis result potential with guess we've think I exclusivity, potential partners if reiterate the past comp on as network I'll impact your question just is perspective NBA a is our of at the right? deals, respect said that exclusivity. value what on really in directed from reverse The

of and is times, to seen. it remains realm the be the many said in business, coin exclusivity I've our

ultimately delivered they're think when and happens affiliated what I to our the with value those announced is deals stations. that

advertising. question So to on your turning

listen, it's I think, early days.

are have some think on into services streaming I ad-supported the respect healthy ad with Street and reports haven't of the aspirations the met entrants that newer that to been CPMs the by the necessarily business their marketplace. the

it think out. how I So seen to that be remains shakes

drive the ability business, not is for strength where turning advertising a and it return of the our But as revenue particularly but audience sports just relates investment in to is lot our the of future drive to I'll only That there. to our right, to sports, CW.

look far as that have the I recent only you to most right? as think quarter, back

records, the dramatic strength records. college of In [ basketball new demonstration saw saw a new records. set the new enduring set football and ] of first consistent we women's NFL set sports. quarter, We

So continues to demonstrate sports strength.

programming programming. -- will our than our and it will different ability products, our think materially be to on different to the distinguish and monetize aggregate SVOD audiences ability live the I based advertising in itself

Operator

BK comes John Our Media. next question from Kornreich

John Kornreich

Is no going to below given change very XX Xx? now point all? X million and about how any be trending given at years, in it any out Is station leverage close you're in going down Xx and rules, benefit there to shares. extrapolate to you If there you're

Lee Gliha

low in point obviously We that number, that our point of what market leverage at be return. would better kind in believe think I levered shareholders what at would a I that we that gives look, But the would time. strategy would But total very a have return time, to mean, to have a see I like be. reevaluate capital looks we agree.

John Kornreich

see the company sort slow private or X of I where a years? in Perry, you I things see in company Where mean X mode, you're in do X years? you Okay. the X mean, frankly. going do this way And going now, are or

Perry Sook

operate exist. Well, on helping simple I content see to when businesses not ] away very our all sell our basic that mission, local [ that's the here. providing business you strip I noise, And reason John, and changing stuff. it we a mean, model is or

company to in we win company stock, investors win. the our will compared to the a Given acquirer the the lot of there's discount believe continue principal trades obviously, then at and for which win. of we're stock fundamentals, to And if investors way its the

year, public the have me point it share to was higher that XX in article talking over their stock is that that joined in is of that you with the it market those back And XXXX, article party equity, about baggers million. your and return over through the would any last over $XXX share in remember around seen flow a And that than XXXX asking XXX your price which XXX% was period end cap on return isn't what of per of largest was. excess a last years. the cash about the and time. John, you I'd free on were XX-year call, stayed But with this during the which third all I

Tribune. have the outsized that ways company, we this of taking swings, return we by the -- and one sheet rewarded big been through So asset And that investors long look of some company. General at was that the produce I amount an unused of powder, balance with Media think as

embedded we opportunities us are to So there, we of patient beyond to shareholders only not for right return capital buying and create opportunities our given the cost the at continue continue the will look being but now grow XX% the will that additional at out back company look to value very -- stock. we're but of

adjusted feel then line if diligence there's finish we everything out if the would of scale, an return proved. certainly and heck that a acquisition risk out we the And there to via of try any get and

looks company can't lead lot really bet, What I today. organic a will think years balls acquisition does. be with larger the those ground company X out say, to I the find now that our from and But I will in like run bet it excited If than to out. would had it but growth? I is combination to I'm

Operator

Research. comes question with Bank from next Jim Goss Our

James Goss

on working effort with. there this ends? a effort impact? develop identifiable should a I to Or in the to targeting primarily you're wonder Is a talk way? and if about at some to that your the measurable Comscore Is way now Nielsen some the national efforts pricing linear it supportive look is bit that and organization sales there more the inform cross-platform little Information you measurement. audience might

Lee Gliha

our are that to excited about into just got able think and of be our able answer Nielsen I'll determined. coming this. that to services and the impact audience insights about is new reach I us provide audience be perspective, we tangible and . But better a Comscore they've of with we're Obviously, advertisers the who's think and second none. think the is with and that talk deals -- I about kind new reported going from to breadth we struck information be to both the it's to to data that of their watching hopefully

with work information to with the clients. utilize these continuing us We are best get can that we to then our providers

James Goss

would Okay. your though bias provide ad I revenues And some imagine. to upward should

Perry Sook

our I've make tell business, preferred in said years the which that lot be to can't the upfront transact. what and Well, currency your out to market in upon do. we've you found of gone clients XX to would a trying money to But Comscore in the broadcast

buy But. Comscore we will the it with dictate upon. And a we long data big think over , adjust transact term. on that currency, clients we better transact the we is react will the our and customers [indiscernible] best surprisingly, So basis as But they set. numbers obviously like not can. would provides will term. larger a and much the to

James Goss

to Okay. to transition any other One the that are process? thing. smaller Or stations there you CW? are wondering, through was pretty I much Nexstar

Lee Gliha

opportunities network bought intend of [indiscernible] as saw out perspective into that a that station the a In you From to are there additional even make CW at San there we we Diego. --

out you we've generates will an because as and other able making move on this case-by-case significant up there's XX point because you're brought for EBITDA at for we that forward. basis if already to So stations ledger, acquisition. overall us just we a us been the it's which markets, of those . But glad to it around that -- transition opportunities, the on I'm just important goes our look thesis

James Goss

I give might talked well? area wonder update stage? up about ramping Diego. last You've us TV this also wondering time? now and ambitious over the that XX% San an And versus I you And Okay. -- with that Chicago over you're think monetization. thing, if data at been as note now on there are you've any NextGen when made applications you I was if about is priority added that a you

Perry Sook

my time I'm Well, in conversations exploratory BD behalf concert with but historically on with, as as also involved fair Brett do company, have personnel well with dedicated Scripps. spending Sinclair, partnerships it's that one and Jenkins, are an we've amount in We our with involved X CTO. area a our where of the of one been

an so high And a automobile. preliminary the And to stability as our with of using completed markets. that We they delivery auto test a delivery of interest. is And the data both results just our quality manufacturer -- in an one and mechanism. picture video regarding were the the impressed there with signal and X.X the were

in test development, a to but before trials with can are us, put applications. be of year lot these out, as from phase in. some I before of which proof-of-concept to to spend got and continue tail pen willing we're this And this new because continue paper hear that flow that's about you'll imagine, money you'll to is the to commercial people start clients believe money long see is -- you'll and to there's you

more to as money more but and are be -- up next early more requirement be this we meaningful do we'll likely As simulcast later the year, free more bandwidth to sunset as able if money. year to generate things then to able to able then

as piece regulatory that all a into there's well to this. has of play So

But double constellation or say, ago. conversations, this spending to you of any the help amount it the that's is, the dramatically year of I velocity on increased we're meetings with to than if topic you have in time would a of more what was people

cadence increased. has the So

Operator

Our Capital. next question comes from Loop Gould Alan with

Alan Gould

know going successful CBS paramount, even know do when ABC I without that after CBS that the bigger be it I doubt the value they of are what guys coverage. Perry, there swings. potentially a is at is then that Bob physically press the One, The Iger [ if concept Would going possibility for has a a reporting big back no Apollo big to Sony lot through sale. to you ] And intend was and that? I just of to it's the stations. network? looked that stations sell know two, would if,

Perry Sook

to a there. let's Well, unpack There's lot see.

ever that we on have don't know or at or think or confirm but don't what about commented may be vis-a-vis ever I would commented behalf, deny ABC. our I all, not of considering acquisitions. First Others looking on we may we rumors ever

change, regulatory certainly regime. footprint and the tough would Obviously, that a change, put, in our station have were that environment. but current under If particularly think, pursue could I to of station given environment be a complicated to they would our regulatory confidence digestion to for anyone the transaction have assets would CBS maybe this happen, opinion

WGN. television without more of network. then station. generally in an hours -- its XXX week WGN the produces than be this with they've news of life, #X it love network marketplace association brief -- back value is began situation fall. stations sports, a that the the CW on well, benefit had will CW but the coming be It programming of a coming of CW without hybrid will biller frankly, a #X the the more will network. had that since -- I that local Quite we rejoining independent in It sports network in benefit be some and benefit will for it most or mean home marketplace the that affiliation and the is on they'll of will that having a of the commercial is Chicago What

But whom business. this when be what opportunities, basically to and at view, your strong the there local locally, they the going I stations news rent and times it serving to time, there'll a community you're tell my programming It TV television you from programming TV stations point networks And our before not are you're -- all affiliation point. of and from a with and stations networks. there you're doesn't network matter television robust that's and fill after commerce you be if were people in were what rent is

Operator

Our next question Securities. comes from Barton Crockett with Rosenblatt

Barton Crockett

the inflection the trend to wanted of And Great. little down what first the you better little driving the quarter bit quarter. advertising on to if drill I bit us kind give a could on more second a granularity just Okay. wondering in I a was is versus commentary.

trending. just Can this maybe more feeling up accepting longer maybe kind you issues? getting better, Bowl there within of type largely Is of of bringing a past of revenues? it feels environment? remind rate some the sales -- it local the Is you the And firming because us that is of give that up is kind national force? the just ad of higher for in people our largely ad are comp your Or us national again kind that, market macro gave Super getting split interest

Lee Gliha

Yes.

of come advertising of think the on are quarters it decline. -- low -- XX% starting is side comps political, those there's will on to are a the kind down year the local positivity somewhere excluding lot local that firming it's just positive would terms that be market, revenue, of a I our between of a some and especially revenues betting sports back . I national comps our are few XX% kind after of where that kind number also, in half back, say, kind which see process So is the of business. in a of under categories basis. I to easier. of there's from some like of our XX% general, of is many the We're growth a would now thought in say, a comes of go-forward

a I from anything overall firming market in else. the perspective, kind a of think than But it's of national general, more

Barton Crockett

were is can -- elaborate you the guess for local And there at I You . Okay. anything things level? said

Lee Gliha

anything weakness [ the pretty count, on economic stable we first it, it's sort not of been to the in think advertising local I why of that's the of resilient. haven't of But the still, in it's because ] -- face I has environment side. that and little quarter been In but a mean very saw and a counted we market. the issues terms local bit

Barton Crockett

the switching revenue. on Okay. And gears distribution then

that would the new mean of your we some commentary How comp or Or industry sustainable that? thoughts that the revert just of X homes. underlying to carriage. the quarters And trend? there about sustainability and where One X is about in things there is be growth that single-digit is talked you partly low is which interesting. you'll I

Lee Gliha

right. mean, it. we're you're I you're absolutely -- No, Yes. comp mean going to I

on stations. got out best releases for independents. releases we acquired our we've press [indiscernible] the saw And carriage our some as I We we VMVPDs put our think you RCWs, put as that

and of releases kind can terms off you timing of the going so year-over-year see when to of at roll And are those look those in comp. a

tied But the as that goes, the day, business. The is of to at because the our trends the pay-TV share the market overall think of market. end the in Look, organic the part and we we said I revenue we've kind of before, as really kind of trends. of -- go just lion's

Operator

our the closing back question-and-answer to like floor We for of turn have session. I the now end reached would Perry to over comments.

Perry Sook

allocation, continues prioritizing it's strong Thank of capital shareholder execution, record differentiate you, peers growth and to consistent companies. diversified flow and operating its largely returns operator. cash Nexstar's Nexstar media from

mentioned Relations the were North #X than on XX by companies I of with provider recognized we over in recently the the list over return. million. only Union America company the as Investor earlier, on and and And quarter the Obviously, that for service media Nexstar stocks that ranked ranking cap best years last was XX with more a telecom market list. $XXX XXXx European

to the for our it time. past to look is the focus while one at So goals we a future, step

build of expect and the momentum partners employees, deliver we about of half value ahead remain to opportunities excited fiscal second long-term the 'XX, to our and to shareholders. many us We through

Thank you, forward us with speaking today. to results. everyone, for when look second you We quarter joining again our we report

today's teleconference. This concludes

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

Nexstar Media (NXST) 9 May 242024 Q1 Earnings call transcript