Nexstar Media (NXST) 7 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to Nexstar Media Group's Third 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.

Thank you, Sashi, 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 today's

Nexstar call. forward-looking to risks from differ uncertainties cautions those statements statements may that reflected to these subject forward-looking the made materially today's during cause that by are and actual results

uncertainties, and December please Nexstar's additional filed details filings risks For SEC. for Commission ended these on with report year with Exchange XX-K public XX, see Form Nexstar's and on annual as subsequent and the the the Securities XXXX,

of no otherwise. update Nexstar obligation new forward-looking or future to statements, events any or a undertakes revise information, result whether as

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

good me you, the period of morning, reporting and fourth reporting With revenue of Officer; today. everyone. and high distribution third all-time delivered you total and always, with net of advertising net of and us appreciate questions. We record are quarter our we'll the revenue. record quarter financial Chief highest our Mike history here Operating Thank quarter President achieved Chief and for The Joseph, September Gliha, and another marked followed Biard, Nexstar's all comprised Ann's revenue, on record the as quarter your books. revenue . Nexstar period results start call, third consecutive review revenue. distribution including I and political advertising Mike's for Officer. consecutive of call record recent We total Ann Lee the company's highlights, with in a by review, financial Lee open operations will the then summary Financial being third

flow or of EBITDA while of debt shares reduced cash of $XXX our million and by forms which cash free shareholders in outstanding outstanding year-to-date returned Overall, We XX% billion also our $X.X $XXX to yielded adjusted year-to-date and the flow. our strong by adjusted $XXX million. dividends performance repurchases, reducing free adjusted of share million X.X%,

commentary, has the broadcast pay as only but we've place television view Before the assets linear And in of local every beginning, industry, business wanted for that television TV a our of benefits the the for political created as shareholders superior because our the consistently to of quarterly I well America. moment to From Nexstar not is television model. value the every the in our element highlighting ecosystem and been as my largest our spend broadcast almost our campaign. bellwether of foundational broadcaster of tremendous now, and clear scaled decades service value X enduring the

news watch, and distributes our platform to with ratings in want media Together, of have Our generate ratings the programming produces #X is local our we diversified position #X that their top the we XXX or partners, of network command in XX% affiliates consistently led highest and stations the comprised which and by day total marketplaces. broadcast sports footprint consumers in Along that news. unparallel of markets. network

for We and also controls capital distribution to by to while delivering support and achieved consumer our advertising maximizing strict America's own value together our other the for programming work shareholders. and network news drive returns. this CW, We while assets cost major all maintaining Nexstar's News revenue providing network, growing broadcast Americans. Nation, for the national also all news each strong fifth and premium deliver America

sustainability validates of record-breaking profitable including the and line the top in record-breaking distribution power business financial performance further Our highly environment our current revenue, model.

cable to TV larger Nexstar why like media challenges programming a of performances experiencing many both including network cable entertainment our of the long network, facing assets, portfolio with are network reason businesses We stations news not same in a streamlined broad and broadcast delivering of the environment. Fox a companies companies networks. a a television linear of portfolio exposure There's our on strategy are assets, anchored and and both the tail strong cable underperforming broadcast current sports. by Without with news

firsthand networks to We prior the it month, now to value teams season. as be sports NFL and value rights only by distribution integral on the part of be other their an of that with broadcast this audience stations the their continue this NBA Earlier many community The because ESPN bolstered value of engagement and anticipate the are added broadcast football marketplace. leagues. as in our and viewership line and to the negotiations will Monday more franchises. and know in on networks and to proof games requiring climb, simulcast the We brings their based broadcast night X increased affiliates and ABC well the uplift, for stations sports points

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invest did the afforded reach. the of and Series Mark time willingness greatest new on X quote, broadcast games and because sport more far not think taking the the series television recent the and economic greater on the we shift deal, but through was of and less simulcast rights made us which point, X stations. reach Additionally, growth this ABC Miles gave happened deal sense, the second as all be deal fee. I could the CEO, that their that network exposure. away years, our in driving said so the Further the will for is do to Day the This for by by the have you most NBA home greatest about Christmas would IndyCar

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October X.X when we before its demographic. outdelivering also the XXXX, XX the competitor, Saturday, programming and competition. hour we Pac-XX off, XXX% viewers NASCAR October direct in beat CW, X, NXT and football, closest all tuned and also existed into WWE top total on FOX's AEW beat the viewers it in million which saw football and by Series X, the Matlock CW had To are the CBS' to ACC XX CW on the had Xfinity racing never And On daypart our ownership. the and

of acquired ACC, the that We've and quarter the will more. Pac-XX hours CW the deliver we increased the programming total be NASCAR, transformed of sports-related CW football and in fourth programming, Since of have sports the football number programming we basketball of XX% over and XXXX and hours XXXX, network. will in by XX%. now of the WWE, And profile including

We the with this will are generate originals than cost previously accomplishing lower higher aired. for network that the programming viewership

in the position achieving $XXX of reduced and now loss year-to-date losses quarter, the year-over-year $XX operating of our $XXX this over we by improving operating proof this by million over million CW million the stated year. As third previously by goal

CW business benefit As side broadcast we from said well. the as previously, ownership continues of our network to the the of station

affiliate our Augusta, the stations CW we benefit Ohio, become in X station to closes. falls, CW CW become Diego, us side saw the San recently last market's and stations became year announced will the to station on CW The we of once additional transaction excluding additions We acquisition and the which Nexstar operating date, Network the Cleveland, and profit that will which of an Utica announced XXXX in by Cleveland, made also ledger. which in the the affiliate independent future. Monroe, generating affiliates Affiliates [indiscernible] just acquisition in of in a September And of our

moved all biggest affiliations approximately of U.S. X partner-owned to the bringing our of XX, the have networks. CWs households, big group, XX XX% of marking We owned covering and station CW the television to our footprint of company number station

now Turning precinct the statewide call Decision Desk races voting and results presidential news In many data, first were With we of is only also with level revenue. not DDHQ's the our were the on to partners time with substantially biggest states ago, call election. line called and race network conjunction ahead distinguished Two X-year-old itself XXX% to the political competition, of to we HQ, we first but nights the accuracy. at cable each the Nation outlet News America's our stage. of

the indications and to Our and trends exclusive call. prepared DDHQ probability of before official states was even gave make meter races

Our coverage was balanced.

no been other has. and Our respectful conversation and is Nation since. so News that smart has aided And with was and resources both insightful network

the First, record XXX in benefits organizations News country, produced which XXXX. local halls XX a collectively town the from our across Nation news in debates of work and markets

Second, do in HQ, Desk we work for which News in proud continue that continue of the is growth to in with of with terms to inside say, new the and incredibly Nation of the users Decision the Hill, source the I'm works news to Nation I of D.C. network News like believe own resources coverage we is partners we future. the that beltway it conjunction national Suffice of demonstrate. audience the tandem why This these and #X

the pretty election the advertising have clear With into XXXX behind us, political visibility picture. revenue we

the booked political advertising revenue local at and Day to of remains presidential $XXX television a booked spending, election groups million far Election Once and again, million interest through we As record by local it far we versus of of of reach voters scale. day, for year XXXX. $XXX the election political the year-to-date, so choice medium received candidates amount largest in

the while media will environment. over It's people government not there push as news and reported further that fact-based and be applied the progress. White to this local competitive cap benefits for them reality X,XXX More today's We true American do created from believe into House, forward through likely shareholders industry the value to to the of employ. by consolidation broadcasters journalists led the on evident the the driving to continue antiquated the Senate we As Republicans want unbiased deserve that new reflect deregulation. be that period us we ownership to on the our we who is we by move in House work and of to

free enable and one results growth In strong strong most results, us flow media companies summary, from our overcoming and it cash to and peers large consistent our diversified generation differentiators and of headwinds. shareholder powerful Nexstar's achieve market remains will

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

and everyone. good morning, Perry, Thanks,

referenced, compared was revenue net revenue in primarily net revenue billion political. year and we delivered distribution Perry revenue, As prior to to increase third due $X.XX $X.XX the in in XX.X% billion driven quarter. of record quarter advertising Nexstar's by growth

affiliations and distribution the mid-single stations rate January, addition year-over-year more XX.X% distribution escalators, with the revenue the certain $XXX return of XXXX, comparison grew single third MVPD All revenue together retrans on and renewals distribution were with when vMVPD period on . That quarter third growth to million. of of MVPD distribution X of the basis, which our attrition. high grew from growth on the a MVPD. all-time XXXX in Our in quarter high subscriber Nexstar growth annual apples-to-apples digits. digits subscribers, in dark than benefit also net benefited revenue stations grew of reflects offset in, That included CW that contract X favorable an stations partner

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

made and on CW Over including renewal of our notable News services, distribution Nexstar affiliation cycle, while last network completing owned expanding and Nation. the favorable terms, we national progress distribution agreements the

to stations Perry we in is agreement our and XX and believe CBS detail, affiliations scale. to of our this and more testament markets. our with renew described reached As In partner programming the in power Nexstar value performance July,

top television CW in September stations media-owned Miami the the network that of XX As Detroit, CW agreements Paramount affiliation August, we affiliates renewed on both gray And negotiation, part and in X independent markets stations. of X. with became owned XX

a several Looking new new Comcast past and DXC made optimistic with we pretty also have saying to positive remain services some packaging their see retention, for And on their uplift this impact acquisition video attrition. earnings reported picking comments further significant trend. bundle see on success sell-in" video this a also linear "already their subscriber and on out, about up certainly in video the they in the of of that and a video" subscriber call research In with will that we pricing quarter, of Charter attrition. slowing declines product. significant they "expect is third-party programming their

XXXX. subscribers in who shows to X% down not Kagan TV sports SNL stated with viewers the our sports the October rate of subscribers pay down pay XXXX a beginning in ecosystem. slowdown example, exited that in thesis to news X.X% Solon interested in rate XXXX For in when not in of published proprietary media pay that of the are data and to with in composition TV a from in that have further is see XXXX X% a the TV previously by X.X%. step are is This Indeed, the attrition loyal news would or meaningful our normalize ecosystem consultant, from projects attrition we report consistent either XX% Altman about

in who rising with TV interested XX% the both and increasing of relative news Pay With share both total sports that the in and subscribers quantum ecosystem. are to share

Additionally, the TV we the and models more bundles across the of that financially recent with an DIRECTV the as around agreements. industry, number continue most pay with works coalescing examples to being make DXC towards economic industry products see packaged sense NBCU Charter Disney increasing

by power for viewership, continues devalued of content programming migration their to other cable relatively to are in General reflected in streaming model yet inevitably most programming remains suffering and addition, of the entertainment sports the watched and those ecosystem, viewership distributors. In broadcast be programming with especially programming owners drive network reach, and declining TV network to maximum from affiliated is the it Broadcast renewals services being networks, by undercompensated Pay engagement. continues their distributors. the the

programming decline rationalized, and of research VMVPDs bundle as Broadcast across as fees this to cost the are supports mid-single-digit becomes news to expect continue stations be by retrans networks will allocate free [indiscernible] and critical in September Nathanson toward will hand, they the XXXX, more continue perform affiliation more thrive continue to sports grow and on the MVPDs we dollars to number in expected cutting will that other broadcast cable even cable range percentage. landscape. a to while the the Moffett in At on report project that rates thesis similar by

It together network and continued attrition subscriber growth scale continued from retransmission our and and with broadcast news revenue. distribution Nexstar's should record our revenue provide. and third highest of value distribution is TV to fact-based pay we superior in in the strong rates, year-to-date network the growth evident quarter moderation A the broadcast our programming benefit that partners their customers cable programming and distribution continue rated

Turning to advertising.

advertising. the quarter. a increase to compared declined year-over-year prior nonpolitical decline to favorable advertising slightly more quarter XX.X% year-over-year second revenue in reduction in in the reflecting advertising, our quarter, political the Third just increased a than offset year, Nonpolitical X.X% which in advertising X.X% third

were reducing market softness year-over-year ongoing quarter by We the advertising The anticipated. factors, and X%. were for by more of offset advertising Olympics political than nonpolitical decline partially in those the impactful affected rate displacement that

to challenging advertising nonpolitical year-over-year basis significant in ahead the the low a of to part due amount at pacing a down quarter fourth well advertising percentage impact Looking political as advertising of fourth as double-digit the is quarter, on the market. continued rate

political. to Turning

books year-over-year million third and political of by Perry the Touching quarter the advertising the for had rose revenue political increased of comparable on Nexstar as moment. XXXX. $XXX $XXX as Election advertising period, CW Third mentioned, a XXXX versus Day, record record over quarter And million XX% a on achievement.

$XXX Sports. and over our Phase As and in strategy successful, from new strategy the success been programming $XXX of of XXXX arrival X expected by reduced has particular, Perry in costs our the of the we million XXXX. pleased in programming we are outlined, have CW with the half million to

This network that hours. despite and next and through The focuses monetizing dayparts distribution. expanding phase programming advertising on success

up are And well positioning CW's a our the of XXXX. X/X than to more fact, operations. finally, strong moving renewal In in XXXX, affiliations for for us

operating simplify We and are which the accelerate streamline acting across company reduce to further innovation and will expenses. the organization, entire

to summary, more revenue as represent margin partners strong enable focus priorities to will initiatives our pursue our performance we long-term This Nexstar opportunities. our across evidenced results our growth that that directly opportunities viewers, customers In continued drive streams the and of more impact best on ahead highest still with us.

shareholder adjusted We against have of each returns. and EBITDA, cash continue flow experienced, to accomplished in businesses teams strong delivering free our revenues, who well plan, our execute adjusted

that, Lee turn review. of with my for it's pleasure And the Ann to remainder financial over Ann? to call the the Lee

details period you free million you, primarily in to expenses was of with fees excluding on corporate adjusted good compared The or side, operating the $XX third of QX expense total programming and the direct $XX gave a most million related SG&A of review EBITDA variable provide programming. Together, were the increased corporate so $XX everyone. the including along expenses, review quarter Thank cash expense news of compensation Mike to last including second compensation adjusted noncash allocation of XXXX. increase and amortization increased Mike, of of the we to activities. our morning, DIRECTV expansion X%. expenses, quarter of costs and a $XX expense the and due revenue capital noncash by and I'll with XXXX flow depreciation million $XX dark was year time million, to million, due and

is amortization rights fees. $XXX million EBITDA to broadcast to adjusted of and in due $XX compared $XXX quarter, QX in definition prior million XXXX. The the the part Of for included these noncash offset QX decline $XX of year XXXX for $XX million. increase of our a amounts versus increase related reduced was to compensation by is million of legal in depreciation QX primarily million amortization $X in expense, million XXXX

XX% representing rights EBITDA Network, The primarily programming $XXX quarter in or with ownership expensive $XX margin, of adjusted TV XXXX declined equity of third Food amortization related EBITDA was XX.X% reduction less in by together million Putting programming. the as lower from a million. due quarter revenue. basis, $XXX an replace primarily method of expensive million we more reflects on primarily to by the increase million, $X all income XX% at $XX lower our CW programming was broadcast quarter adjusted million from XXXX costs $XXX consolidated to it third by of investments, million which a QX advertising

election our is for primarily with the to year's period and XX year political improvement due third This revenue an quarter. last impact MVPD of days dark during

Moving opposed to a as reconciliation. measures cash provided. out adjusted flow I we key cash the We items and cash number these to now as in this to continue free free flow. to income net of operations call from reconcile previously will

was due to million year, Third $XX of quarter for a capital $XX to million million CapEx the year and primarily a of decrease third the compared last $X of timing expenditure plan reduced in quarter expenditures.

the net versus 'XX on at $XXX interest Third million and XXXX to of XXXX. for million QX expense was $XXX quarter QX This $XXX third in cash basis both a 'XX. compares quarter stable million in

were federal quarter. tax and defer reducing by payments second had enable $XX method quarter Third in impact method. the to in of $XX will about as XXXX of about $XX quarter method cash into tax of million for XXXX the operating to the taxes our changed the XXXX us million annualization million from compared million to tax estimated $XX we This

to Term excess Loan repay this use availability B. We

the XXX less of year, debt we facility cost if amount repaid. for our can, revolving the points we credit the pay borrow needed, when the than under tax, we Next basis we

of fourth QX $XX proceeds from million. partners we made pension estimated insurance Cash were versus for about and in X versus million disposal software $XX million contributions 'XX. credit, of were million and $X last the in our capital taxes the capitalized calls CW in quarter year. be no Payments as assets for quarter cash recoveries from net are Our the to obligations $XX

there And costs that early will adjusted be million, million quarter third cash XXXX putting this only QX to CW flow amortization related all million spend between to million to as was consolidated $X XXXX the compared QX year. payments is programming cash in to programming grow in difference as expected XXXX the together, last some period. While number $XXX and was impacting free $XX $XX

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

into Nexstar's cash as made billion, and million was outstanding XX, for Term as XXXX payments quarter of excess our million I optionally $XX $XX of quarterly the million $X.X $XX amortization Loan 'XX. deferral with the September debt a at mentioned, we XXXX, reduction B, repaid on income of from tax

quarter more a As even to flow and we plan some our plan portion use our repay to we reminder, cash years, additional a to of debt. between and free make consistent odd fourth repurchases optionally

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

net our which LTM first X.XXx. is lien September first excluding XXXX, X.XXx, lien was as covenant well our this of of such, the XX, below and period ratio for CWS, ended covenant Nexstar, only As

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

grows and is during election calculate EBITDA versus years, an As as LTM typical [indiscernible] we leverage, political which with basis XXXX we default adjusted average on advertising. expect political X-year a

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

SEC cash free QX comparable definitions you to to and closest the the earnings want of measures to presentation finish, the describes flow. that the release, sector, non-GAAP new adjusted I refer Before the of cash reached our EBITDA, and financial similar in broadcasters flow free our reconciliations agreement would note we all release regarding earnings the to GAAP I which adjusted with other measure. I

are changes impact any information we agreement. our changes website a longer None adjusted flow. is credit adjusted only of the pursuant for measure performance of our these to on changes on using that these We our these on and no EBITDA proxy of adjusted now calculation The as regarding impact are are a have leverage primary EBITDA also using supplemental providing EBITDA as cash Nexstar.tv.

of the As ordinary including income definition in rata from Network and in cash the net share TV pro when a lieu result, of Food distributions we we them received them. course our receive are now EBITDA partnership our of we adjusted

of This concentrating that our has the across in net prior more spreading it the income matching evenly current out year distribution impact with the income QX year and X of up quarters instead received we adjusted year current EBITDA. when

from with programming versus In payments. and flow we is definition. performance using programming primary as of Network, matched Food that and liquidity cash generation, than metric our now adjusted amortization our these of even related adjusted their these cash related changes in changes than expenses cash cash payments, all addition, are metric rather programming up to amortization reflected distributions rather are flow to accounts in be on a actual receivable program which the impact reflecting CW payments the in using all free revenue definition TV including The the free will though a

our the For refer release to of more in mentioned, and all website. changes, I detail, as earnings please materials on disclosures these our the

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

Benchmark. [Operator Instructions] Dan Kurnos question The first from from is

the from Lee just the the News brand CW, pretty good given And on do night. regulatory on in of capital watch election was some you a think think plans And the lastly, change these swirling about Mike affect Perry, here. just way, on then and/or getting by here. it the you're Nation, you suggests administration. profitability how your worried that And benefits ones does Do safety. quick allocation to headwinds you few then how linear, nation advertisers math likely on Ann, from close A Great. changes?

just path an to get now. love update I forward on So going the

Okay, that's a lot.

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appealing this level journalism, lead. own service industry government relations communities playing local in Congress. the new issue, for across preserving Republicans who some America, consumer established presence a is And by due a to country. the in both seek as as the companies And local regulatory can time now needs again to its viewers every to news agencies on a once we reform nature on not both this and this strong in them. preserve To D.C. the prepared just compete Democrats Nexstar bipartisan to and work Dan, field to with is advertisers ultimately, screen issue see deregulatory and to and our We've of

moment coming of took deregulation January at XXXX. the roughly the in subject, I'd XXXth multiple for I due of point prospect context. My XXx from for multiple, progress the took office the to While in in been which on history we're past. company being XXXX Congress, EBITDA in a deregulation that part expansion a a on to take like has catalyst little the public to a interject

That our as -- a we and the X.X standard. ATSC with of transmission sense industry's #X plan as is our adoption to well move association's push for urgency this formal of on So trade as our priority this with administration. new

earnest, keep you posted obviously, As bear fruit. as and begins work through we'll begin expectations, our our to timing in and results

Nation, News as news environment. there year's out upfront, literally as because a this avoiding to a a we news, relates they national of conversations daypart and hundreds a it advertisers or As that and consensus toxic as of were past was what year's cable current daypart year, saw in sense advertisers last national had this there news with upfront a

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news in again. day will the back maybe So come favor part

nice and our -- growth products News both our new audience supporting at in Nation. had in revenues We've

obviously, that's growth, consistent at can base. off coming very low of to and people do. So is that's all same ask I But it our a the time,

-- $XXX then you year-to-date obviously, [ ] losses relates it as And reduced by million. CW, on to the we've the there saw that about

should hitting our of improvement. continue the his a year. And position CW in but up renewal In to percentage said for quarter, a terms $XXX of which improvement a well the XXXX, be previously Mike this distribution we've deals we think the think little give of the us significant -- XXXX. of continue million trend I of to give in that in target I in for to for with got back, we're XXXX, mentioned call, fourth going the expect we've probably we'll over little still bit in

that's of right of So revenue nicely and top. get it's really programming got us it's and a our in lot distribution revenue about driving more programming the good rated to place, advertising over now about now, very sports kind

The Bank. from Benjamin Deutsche next Soff question is from

video I I'm important a of Thanks. guys the big compared ecosystem. round renewals to that on year. you far cycles the ecosystem the appreciate price during round all you factors. how as coming of to or other renewals ability take as see your color do wondering prior have next up any

view. opined to that, Well, We there's point and our is unknown, the of on out there I obviously, attrition. data biggest I support think the of points think rate

are DIRECTV can they've approaching with trends at DXC a distributors video. particular, obviously to Charter, think of pursued their deals, model how linear of terms in think products look I the I recent bundling in from and you

someone said their Perry that worry which look is in ourselves [indiscernible] do with kind the of in opening sort their remarks, of that's war in else's how we his regard, linear. about they at products reconcile to Fox As same DXC

I terms we'll the In way New products, appeal that have. sell for with fact, Nation we And at the in increasing do we same at CW sell linear think always of our we articulated. the reasons and how them

we'll prone same the business We the think we our we our more on of the into ecosystem, going go TV continue But we watch always we'll resonate. of to think strength think programming not who will way are as concentration the I from to in have. go only content to that bundled So viewers terms forward. mentioned strength inside

play guys And out then more could hoping a bit on that I we during core saw of versus any little or local sort was you quarter. drill the advertising, national into categories

look, about aided by was the a mean, from over were I we was category perspective, of but of in QX, XX% that Olympics. the part impact which down. improvement an categories our had Yes.

down what by consumer can that our things. I high what of of terms was, And think I the was fact are as categories, is in with lower in the the dealers think, of what declining part and and it's think in interest so just terms lots. our I have a category just One on rates leverage. auto driven respect largest their -- was was just the that up, inventory different large couple -- to

relates national the in similar historically, the is of that of trend our down which been been is kind that revenue versus the we've over we stable, a sort kind kind of of quarter, of local national saw trend just that's more time. we've seen in teens local continuation seeing the it but and to As percentage was

in growth very terms things perspective continue of on the We with digital do double to a the our well local digits on from revenue side digital of up side.

next from Fargo. Steven The Wells is from question Cahall

you So during the could was guidance in some wondering your of just number, full political put year year. context that you if the I of gave

I think broadcast low percentage teens of political like that something was spend.

is for and what dust the broadcast. of overall settling was it cycle in still what terms the think was I

in with least So just And number we cycle. fits curious how move late at saw XX-year certainly, kind in the there. that of periods, money some

also to more seem we continue more but cycles. and get does like So it bigger dynamic,

kind So drive the able when you to quarter? about improvement what for this all was think perspective? then maybe cash wondering I at CW have net of on there . And might any about you're CW. that. a How CW that in have. if looks love the the to within the and about contributors one retrans key of would breakeven the do what to just like point thoughts losses context XX a again, in get your from you And flow I of get you talked affiliate Is we to stations you now the

political we a still So are, side settling dust share. what line numbers low the were of with we in on Obviously, have the on was. guidance things, the teens is that talked believe market about we what but

in a note, I of there's the The 'XX Steve, and you're when you need parse think are. about of 'XX, terms you the terms individual numbers of kind looking lot the make to expectations sure that out one cycle that is revenues that those talk just political for of numbers to thing years. in so includes there apart the at what They cycle. just

XXXX wasn't the it I of moving a at number But money, In of for bit that year made that even was different the money were of I a we markets kind yes, in. terms largest the Nexstar the did end terms And little markets around. versus the presidential and we're it. not that's just to money are there election we on to usually still and of that the catch achieved that breadth testament portfolio situations does election day. our an record that the margin. There where as some a a have the impact And there, we're of here when think of of like really some of day, year the election in fact think, a see spending moves

the in intercompany CW all affiliations ownership of the distribution bringing CW's CW to relates the the the right? Because the is it profitability back the profitability agreement, Nexstar terms affected extent of of to those only by and factors. of As driver is with affiliations. a the this, and excluding the including revenue has That track terms we other affiliation agreements material those not in sort with Nexstar these that and of improvements in-house,

at been driver that it So not really profitability. has all a for improved

when out we we'll in talked set for the guidance are our year-end we on 'XX. that the to And we that continuing up to line and have profitability set about, look, time more results achieve

question Bazinet next The Citibank. from is from Jason

getting the that FCC simpler by and it, at that out be Democrats I of your you're make Congress just I to we broad signed already to issues get have should think and that election? But rule-making that is presidential want right push could question of there through focused a subset and up national loss a know going getting not my way the the sort is, follow your Democrat/Republican bills about given and to passed executive. on about just a with working Or coming on local backdrop, regulatory regulatory at sort of point of we could be the level the comments. Republicans. way interested the sort Congress, we answer through its of or is the in that

legislation cap the how was think current cap that's that change to needed, likely I than Well, will be more because not particularly national the established.

or administrative other be those look processes market at an process could quadrennial or determined. level, end or review to through you dealt when be with likely However, either rules the regs, caps that

of today's be that I agencies are exclusively So the obviously, marketplace. And to to the things -- we could a -- the cut [indiscernible] moving for of it's those of the dealt simulcast the that will hill . And think requirement from licenses to flash is the experimental terms be and we province to all the in to that today's administrative press for present mandate licenses reform reflect would are as then mix end -- both. on sunset process. the as ownership to in realities ultimately, of to actual of potential agencies that through a date

certainly only our working be angles we'll and industry, which to progress shareholders. will for our all not benefit company, try So our deliver there meaningful

next is Partners. The question Huber Research from from Craig Huber

Perry, heard long-term in spectrum question, road. it's here, we that how potentially while a you first a down haven't My going know uses I alternative to monetize proposition. the from of

That's been you to question. potentially first have for anything you working the the industry. Is upside big on there in Some guys lately. shareholders? But about new what talk

establish significant the along space. transmission it's those be lot on, points in say we other leading for space, to lot a Biard and like digital Mike the navigation beyond things that multicast be not they will to that data a will Brett in we're companies first with we're conjunction our is to efforts anything. contracts There's announce or And dollars, that. proof our of money proof will they people would but whether the ancillary uses or that signage spectrum, concept really are year, I just have continue is on. anything There ready paying of believe not of a offloading CTO, Sure. for going of with lot this willing working a be or or that Jenkins, in

but the activity for to lack not And if announcement know don't of color, on scenes. plenty there's behind the Mike, any because you I going is the add want of want

I that's No, think right. exactly

I moments think we'll save the substance. of our announcements for

is second there million side call you question, Is revenue there cost is the call . that loss on $XX $XX third those to it anything as you well? losses just can Or all out would the the to year-over-year Is help quarter. out My to want guys in those CW anything drive down million lower? savings?

do And at the offset those operated affiliates the and she to none said our Ann operating is on I first, the at owned used can network in. want I level, side level the that clarify speak Lee any of I'll and side to are just and jump losses level. improvements earlier, affiliate station Well, improvements of the being --

of network you So sports. expansion almost due as the as of is of exclusively you pay pays amount increased XX% obviously, relates of the have if to CW will. a -- to is programming But the the we by that go, it hours

And selling a daypart that that's so weren't before. we

new coming . there. there's fresh revenue so revenue, And

And And substantially. programming while increased we again, so reducing and opportunities certainly for the combination programming by want it XX% I to that is the reiterate costs of a hours new revenue cuts. cost

lot events to programming. live a in to live of pay this scripted and sports for making network people is for less that operate and attention realities are there less willing and So the

detail to so And of we're any want do you Lee in save costs to network more direction advantage continuing opportunity both the pivot take to the to there. you that And and have revenue the Ann, offer?

can Yes, which you see in in improvement can gets later you'll of we it you I I broadcast the see the published in the quarter, track, today. terms the of look, rights, break think Q it amortization just mean, when the third in out Q.

kind a on portion quarter, improvement So have year-to-date good side. of we revenue the In really of on improvement been the programming side. did the the has on

So combination a both, cost it's kind of the side more at on of the moment. but so

my question, I And could. final if

quarter, obviously double low ad displacement by the for digits revenue as down being about about. talked guys political you fourth talked You in hurt

more any the the If which in seen it in displacement the trend at change December prior pacings you there juncture, could isolate looking year-over-year is this TV bookings material in is or came before of through? December, the underlying the just we've December? Is month looking same? the there trend months are same how Or the of better

is have is, it to anticipating the our in revenue. there less in revenue the would demand it which on additional to substantial for obvious would we're had again because State XXXX stations add in but those we a for Georgia, we total. put it's that And not nor political political runoff that states would Well, pressure that inventory also of

pacings in they are we but that. yes, better the expected in than So November, December are

or significantly December definitely October, I it's November. is mean, it than absolutely. in better yes, Yes, December

Sorry, ago, year how how December when compare you a looking looking. versus this juncture, trend is at December that was

is. pacing what that's Yes,

the also and period what year that's prior versus it comparing we're sequentially. So

versus what Yes. But versus 'XX 'XX are growth growth asking rate was you 'XX the rate? versus the 'XX

days December to of today on looking year X-plus that at or bookings versus stage sense out this after the how the December, looking juncture the into last month starts. I'm weeks trying the X just what of get same before election, a is the month at

of are pacing less and down week-by-week, in in October in basis looking give we to . think directionally, the here. level they December all that's going Yes, And we're at establish November comfortable 'XX of terms of We're to the by point. giving the don't than down not updating are day. they about day-by-day I of start to were bookings better pacing this really detail 'XX. our

from question from is Barrington Jim Goss Research. next The

been we've are Following News that drivers as a Or still next the [indiscernible] is in development? Nation there growth the come and having relatively early of be side? more other revenue discussion we likely growth CW to on of revenue the here. on retrans levels their stages from cost little to are should it focusing phase Is to that efficiencies reasonable near-term think than more --

play. elements the interest it. a think of relief thought level, a at cuts if the school continue like market, there's the could Fed today, lot rally because the at to market. you macro of a here is add uncertainty see out And will spending in rates that I a stock later Jim, out much to that There's of

on in the not, or how would a Is rates been, for structures think business, interest itself But mentioned, sense to happens environment. represent only general people's cut know. the that that will Michael and we as forward? looking of Lee that not manifests tax of realities we the capacity workflows the don't administration a organization spend Ann there I that realign realities better and mine whether economic have there are could do Now generally, efficiencies is than our administration Democratic to willingness Republic business be the going advertising. to reporting impact a and throughout . I think, and corporate

DNA. to believe continued our of there That's or either nonnecessary a be so elimination costs. And will what we be part been duplicate of

sports Nation the almost as report the growth new and and year we CW, our Ann News mentioned, all opportunities, think And addition will years be outlook of you QX obviously, I I elements go ago. guidance results. to in founded into our I we with early revenue the XX those forming cumulative at for of will the Lee since think delivering at given the XXXX, when company which,

other One you app-based affiliates right. you update or thing. wondering, and us delivery whether of -- the could and a smart do meaningful revenue benefits . TVs way. are of in on versions or dollars All your not that local than ad I'm full fast you -- rather have pursuit

products of actually Sure. in expanding those We're now. the right process

apps need inside programming I talk programming. the And the a to take independent CW the X between X, So that right affiliates network the non-network have when digital affiliates onto full the don't we to our you programming distinction apps, the being think big make Obviously, delivered big versus network versus of stations. we you control. outside about via then

as that local our there in process have primarily of is case KTLA, there programming, we the with in audiences it of much So where doing will are in the local fact, digital-only model some expand including instance, WGN, it we business for comprised robust to continue already apps almost healthy that. and exclusively that the We're of programming, across take programming, company. of

certainly you'll and announcements of scale. think see year QX going this at I into launches some

with will as affiliates So providing of major some distribution you local well. live network the them that require networks, opportunity though -- of be is with full even any affiliate further agreement the your would

X require Yes, agreement an networks. the would Big that with

businesses, streaming do station even apps You They their what don't network inside DC apps. You don't their doing. see are networks right? full products. can concentrated really live look their inside that network doing individual at or Those the own they're for

doing interested certainly they with We us. expecting road, things be down would like that So to in the reach so. by hope

I be now. map but to our on road it consider, would something right not think that's

you last administration. one in stations the with markets. realistic of of one When deregulation a was a Do that's opportunity one. Maybe new of station more talking guess you [indiscernible] X the Okay. -- top about duopoly X the top potential. think I were Republican large

but there's the exists it presumption opportunity that. FCC requires Jim, Yes, and a that today, waiver from on no

administration. realistic So actually there current to access is an is under that opportunity how the

of of big in terms stations X the top in haven't the X, it's You viewership. X, combinations just lot X marketplace. rated of it's X of of top And their announcements a not big seen

So and upon. that already to in in theory, opportunity access exists it in will Republican be easier practice act administration, maybe

next question is Rosenblatt. from The Crockett from Barton

an and on Internet earnings which the just wanting the of The given is all for you it sector. interesting regulatory ask some be ownership opportunity if I the at situation calls the concerns, Or big inequity discussion there. obviously do into think guys? the could And adjusted the change to there's from a eliminated your a one the do game. are cap you What XX%, antitrust it regulations, back you M&A was, do you here that UHF, just potentially cap? that think also given was of kind prospects think ownership about face in specifically others matter would very for guys And that maybe other for being to maybe don't get

as year knows. our like see you'd delivered case hopefully does server join one no I be in openings, [indiscernible] think see would would it remarks future to this somewhere from GR for as business, avenue but by congressmen I've we the huge deregulation, see in people time want growing and a it you've Every a but a the now, being if country, local to see office an is team spoken some my the good all journalism. I their question, first got preserve not we And bot Democrats. And it listen, D.C., news would in fact, Yes, it, the where and the Republicans last made issue. women to in in chat opportunity. said to really as we've

that, do unfettered has be Well, to and Maybe journalism. tech not but have an footprint. strong [indiscernible]. XX% with big car, field that And said we We're they local the to And screen that in you do reach to discount. have than America with to our house, And my your reach can't we are access, home my television producing you so can do currently, playing I what every to every over to better need companies to even kept as pocket. a my able have to little UHF preserve journalism. allowed station house, who local compete we're with

independent becoming and free -- press. last vested the at mile, we so a journalism preserve of -- that think a level. see local free interest bastion is we And Republic broadcast to that And and in the press the a or remaining there has last maintaining independent

GR face and should we're we mind to someone and regulators share job and -- get mean in and I there's is But hope and can with so eye look as why logical care. DC And to be no an the investing. the these do any you sense. our our as the regulations one operation the straight head for the that's a a [indiscernible] eliminated, current hardest all things of is of rules carry we'll the And that say competition case make of But the one going to says, deliver that the time because [indiscernible] of obviously of to day. be to legislators to

the these case as we to that our deal been ultimately to establishing a are everything since good I'm have be we'll conjunction and of association time with do and hired this. not addressed And spending my can GR XXXX, have in XXXX and changed. regulations there why to in We office trade Washington. XXXX, on a beltway make in inside need addressed the

of also going M&A levels to cable Bros. networks. David on explore Warner spinning interest Okay. that their at the came different was the talking they're M&A, about announcement think, topic with I then Comcast And Zaslav, of And the off out

Or you? from stuff what and a with you cable something just could all And bigger really be is So interest perspective there just M&A theory. around News networks that at that it networks out CW could is be some kind at of. in there at do? sort from cable asset that that done wondering, an seems Could class there was like you've look could be But scale, distraction of that an be you Nation could interesting? some I

call I in establishing the tape Well, our of think have that network expanding review the our we we've -- if you interest rewind this cable comments very and portfolio. little said

cable time, always But we our ecosystem. I would broadcast the status at desk We broadcast. a there's opportunity as believe price to in Now the the on presence we focus in had opportunity if is its our expand for the the and one ecosystem, obvious the everything. say, broadcast in portfolio on model, the the same

local that and we in obviously the company I fact have where by broadcast lie. built preference -- it's think And our and America, the so would largest interest

And appreciate I juggling apologize things for duplicate in. thank just Okay. coming if that's the other it. a I you some But question, answer.

the This Officer, Chairman back concludes to the like session. would to floor Sook, for Executive and Chief question-and-answer turn closing I over comments. Perry

leverage. maintaining generative Well, nature Nexstar by to financial and finish combined of our strong strong while framework, saying a operator. thank want our of with very our business, just strong low cash you significant much, I to continues balance free sheet to levels flow, enable cash deliver free flow,

required actions while future returns delivering the us to joining again and Thanks, against necessary our in long-term shape results. speaking when look and forward today, strategies, to report company everyone, our you and to investments we shareholders. February execute our Looking growth for ahead, to outsized the the taking the with making we'll continue of we QX long-term

This concludes today's teleconference.

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