Nexstar Media Group, Inc. (NASDAQ: NXST) has announced a remarkable financial performance for the fourth quarter and full year ending December 31, 2024. The company's net revenue reached a record $1.49 billion for the fourth quarter, marking an impressive 14.1% increase compared to $1.30 billion in the same quarter of the previous year. For the full year, Nexstar achieved total net revenue of $5.41 billion, surpassing its previous high of $5.21 billion recorded in 2022.

Perry A. Sook, Founder, Chairman, and CEO of Nexstar, expressed his satisfaction with the company’s performance, attributing the record revenue to robust political advertising in an election year and the company's extensive presence in contested election markets. The CEO highlighted that Nexstar's distribution revenue continued to grow, underscoring its leadership as the largest owner of local broadcast television stations.

2. Financial Summary

Fourth Quarter Highlights

Net Revenue: $1,488 million, a 14.1% increase year-over-year.

Net Income: $229 million, up 129% from $100 million in Q4 2023.

Adjusted EBITDA: $628 million, a significant increase of 39.9% from $449 million the previous year.

Adjusted Free Cash Flow: $411 million, up 67.8% from $245 million in the same quarter last year.

Year-End Metrics

Total Net Revenue: $5,407 million, a 9.6% increase from $4,933 million in 2023.

Annual Adjusted Free Cash Flow: $1,203 million, a 32.9% rise compared to $905 million in 2023.

Debt Reduction: The company used $327 million to reduce leverage during 2024.

Revenue Breakdown

Distribution Revenue: Reached $714 million for Q4 2024, a modest increase of 1.4% from $704 million in Q4 2023, primarily due to favorable contract renewals and growing vMVPD subscribers.

Advertising Revenue: Jumped to $758 million, marking a 29.6% increase year-over-year, largely driven by a $223 million surge in political advertising.

3. Strategic Initiatives and Future Outlook

Nexstar has laid out key initiatives for 2025, including the renewal of distribution contracts covering approximately 60% of its subscriber base. The company is also focusing on achieving profitability for The CW network and pursuing deregulation opportunities in the broadcasting sector.

Sook noted that the company has returned $820 million to shareholders, representing 68% of its Adjusted Free Cash Flow, through dividends and share repurchases. Following 12 consecutive years of dividend growth, Nexstar is committed to consistent financial performance.

4. Capital Allocation and Debt Management

In Q4 2024, Nexstar allocated cash to reduce its debt by $181 million, pay dividends totaling $52 million, and repurchase over 1 million shares at an average price of $167.30 per share, totaling approximately $178 million.

As of December 31, 2024, Nexstar's consolidated debt stood at $6.5 billion, with a first lien net leverage ratio of 1.68x, well below its covenant of 4.25x. The company continues to maintain a strong cash position with $144 million in unrestricted cash.

5. Closing Thoughts

Nexstar Media Group's impressive fourth-quarter results reflect its strategic positioning in the media landscape and effective capital management practices. The combination of record revenues, strong cash flow, and a commitment to shareholder returns sets a solid foundation for continued growth in 2025. With ongoing initiatives aimed at enhancing profitability and expanding its market presence, Nexstar is well poised to navigate the evolving media environment in the coming year.

Original press release