IRVING, Texas - Nexstar Media Group, Inc. (NASDAQ: NASDAQ:NXST) today announced its financial results for the fourth quarter ended December 31, 2023. The company reported a fourth-quarter earnings per share (EPS) of $3.32, falling short of the analyst consensus estimate of $4.16 by $0.84. Revenue for the quarter was reported at $1.3 billion, aligning with the consensus estimate of $1.31 billion.
The stock is trading in flat in Wednesday's premarket session.
The company's fourth-quarter performance showed a decline in core advertising revenue by 5.9% to $449 million compared to the same period last year, reflecting ongoing softness in the advertising market.
Political advertising revenue also decreased significantly due to the lack of major election activity in odd years, contributing to a 35.5% drop in total television advertising revenue. However, distribution revenue rose by 14.3% to $704 million, driven by the renewal of distribution agreements on improved terms and growth in virtual MVPD revenue.
Nexstar's Chairman and CEO, Perry A. Sook, commented on the results, stating, "Nexstar's fourth quarter financial results outperformed consensus expectations in key financial metrics including Adjusted EBITDA and Attributable Free Cash Flow." He also highlighted the company's consistent generation of substantial free cash flow and the increase in annual dividend by 25%, marking the thirteenth consecutive increase.
Looking ahead, Nexstar issued guidance for fiscal 2024 Adjusted EBITDA in the range of $2.085 billion to $2.195 billion. This forecast falls below the analyst consensus, which may influence investor sentiment.
The company's financial results include the impact of its acquisition of a 75% ownership interest in The CW Network, LLC, which was completed on September 30, 2022. Nexstar believes the presentation of its results excluding The CW operations is useful to investors as it undertakes initiatives to improve the profitability of The CW.
Nexstar's commitment to shareholder returns and value enhancement was emphasized by Sook, who noted the return of an average of $910 million each year to shareholders in the form of dividends and share repurchases, representing approximately 77% of the company's average Attributable Free Cash Flow.
The company also reported operational highlights, including the renewal of distribution agreements representing more than 40% of its subscriber base and the extension of affiliation agreements with Fox Network, MyNetworkTV, and The CW Network. Additionally, Nexstar marked milestones in cable news with NewsNation and expanded its broadcast rights for The CW Network to include WWE NXT, LIV Golf, ACC college football and basketball games, and NASCAR Xfinity Series.
For the full year ended December 31, 2023, Nexstar reported net revenue of $4.9 billion, a decrease of 5.3% from the previous year. Income from operations and net income also saw significant declines of 46.0% and 71.4%, respectively. Adjusted EBITDA for the year was $1.469 billion, down 33.9% from the prior year, and attributable free cash flow was $847 million, a 43.6% decrease.
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