The following is a summary of the Nexstar Media Group, Inc. (NXST) Q1 2024 Earnings Call Transcript:
Financial Performance:
Nexstar Media Group started Q1 2024 with record net revenue of $1.28 billion, primarily driven by high quarterly distribution revenue of $761 million.
The company's Adjusted EBITDA and free cash flow exceeded expectations, proving the strength of their business model.
CW's Q1 operating profit grew by $50 million year-over-year, thanks to a $55 million cut in programming costs. It is expected to improve by over $100 million annually.
Business Progress:
Nexstar has made strides since acquiring the CW network over a year ago, declaring significant advancements, including 12 new CW affiliations and considerable audience growth at NewsNation.
NewsNation was spotlighted as the second-largest cable news network in pay-TV distribution, getting ahead of CNN and MSNBC.
Following conversions in Chicago and San Diego, Nexstar surpassed their goal for the ATSC 3.0 initiative, with 50% of the U.S. population being served by ATSC 3.0 signals from a Nexstar-owned or partner station.
Projecting a change in advertising strategy, Nexstar aims to in-house its sales force for political advertising at the station level by 2025.
The company highlighted live sports and news as crucial drivers for audience participation and value creation.
CEO, Perry Sook, hinted at the company's plans to explore strategic expansion opportunities and create additional shareholder value through potential acquisitions.
New deals with Comscore and Nielsen are expected to provide better insights into the company's audience for advertising purposes.
More details: Nexstar Media Group IR
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