• Total Net Revenue: $5.4 billion for the full year, a company record.
• Adjusted EBITDA: $2 billion for the full year.
• Adjusted Free Cash Flow: $1.2 billion for the full year.
• Shareholder Returns: $820 million returned through share repurchases and dividends, reducing shares outstanding by nearly 9% during the year.
• Debt Reduction: $327 million allocated toward debt reduction, achieving a net leverage of 2.91 times.
• Fourth Quarter Net Revenue: $1.5 billion, up 14% year-over-year.
• Fourth Quarter Distribution Revenue: $714 million, a 1.4% increase over the prior year.
• Fourth Quarter Advertising Revenue: $758 million, a 29.6% increase year-over-year.
• Political Revenue: $491 million for the year, maintaining a 13% market share of all television political advertising spending.
• Fourth Quarter Adjusted EBITDA: $628 million, representing a 42.2% margin.
• Fourth Quarter Adjusted Free Cash Flow: $411 million.
• 2025 Adjusted EBITDA Guidance: $1.5 to $1.595 billion.
• 2025 CapEx Guidance: $120 to $125 million for the year.
• 2025 Cash Interest Expense Guidance: $375 to $380 million.
• Dividend Increase: 12th consecutive annual increase, with a near 5% yield.

• Warning! GuruFocus has detected 4 Warning Signs with NXST.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nexstar Media Group Inc (NASDAQ:NXST) achieved a record $5.4 billion in total net revenue for 2024, marking the highest in the company's history.
• The company returned $820 million, or 68% of adjusted free cash flow, to shareholders through share repurchases and dividends.
• Nexstar Media Group Inc (NASDAQ:NXST) announced its 12th consecutive annual increase in the quarterly cash dividend, reflecting a near 5% yield.
• The CW network's transformation into a top-tier broadcast network continued, with significant improvements in ratings and advertising revenue.
• Nexstar Media Group Inc (NASDAQ:NXST) achieved a record fourth quarter net revenue of $1.5 billion, up 14% compared to the prior year, driven by strong election-year political advertising.

Negative Points

• Nexstar Media Group Inc (NASDAQ:NXST) faced a $51 million year-over-year reduction in non-political advertising revenue due to market softness and political displacement.
• The company experienced continued weakness in automotive advertising and insurance advertising due to recent natural disasters.
• Nexstar Media Group Inc (NASDAQ:NXST) anticipates operating expenses to be reduced in the low to mid-eight figures due to operational restructuring, indicating cost-cutting measures.
• The CW network is still operating at a loss, although it is expected to reduce losses by more than 25% in 2025.
• Subscriber attrition remains a challenge, although Nexstar Media Group Inc (NASDAQ:NXST) expects a slight improvement in the rate of attrition.

Q & A Highlights

Q: Perry, with your history of successful acquisitions, do you still see significant accretion opportunities in broadcast M&A given current market conditions and potential deregulation? A: Perry Sook, CEO: While past acquisitions like Media General and Tribune were highly accretive, any future acquisition must be more accretive than buying back our stock, which yields high returns. We are open to opportunities if regulations change, but if not, we will continue to buy back stock and pay down debt.

Q: What are your expectations for subscriber trends and the timing of distribution renewals? A: Michael Biard, President and COO: We expect a slight improvement in subscriber attrition trends. Most distribution contract renewals are back-end weighted, with the majority of benefits expected in 2026.

Q: Can you discuss the progress and potential impact of deregulation on Nexstar? A: Perry Sook, CEO: We are optimistic about deregulation prospects, as there is bipartisan understanding of the need for strong local journalism. We expect progress at the FCC and DOJ, which could lead to meaningful ownership regulatory reform.

Q: How is the EdgeBeam JV and ATSC 3.0 progressing, and what are the revenue expectations? A: Perry Sook, CEO: The EdgeBeam JV aims to innovate with a near-nationwide spectrum footprint. We expect meaningful revenue growth post-2028, following the transition to ATSC 3.0, with opportunities in automotive and national security sectors.

Q: What are the current trends in core advertising, and are there any notable changes in national advertising categories? A: Lee Gliha, CFO: Core advertising trends are expected to decline in the low single digits year-over-year. While insurance and auto categories are weak, we see general improvement and benefit from CW's enhanced sports content.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.