Tuesday, November 06, 2007

Sook: New media, retransmission fees enable Nexstar Broadcasting to break even in political off-year


Odd-numbered years usually mean a loss of revenue for television companies due to the drop in political advertising, but it did not work that way this quarter for Nexstar Broadcasting.
According to a news release filed today with the Securities and Exchange Commission, Nexstar's third quarter net revenue increased from $63.6 million to $64.5 million:

Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Broadcasting Group, Inc., commented, “The record third quarter net revenue and free cash flow extend Nexstar’s track record of consistently out-performing the industry, meeting or exceeding financial guidance, and increasing value for our shareholders. Our retransmission consent agreements and new media revenue diversification strategies combined with accretive transactions are overcoming the ‘odd year/even year’ revenue disparity related to political advertising. For example, approximately $6.3 million in political advertising revenue was generated in the year ago third quarter compared with $0.8 million of third quarter political revenue this year. Nevertheless, year-to-date in 2007, Nexstar has delivered gains in net revenue, broadcast cash flow, EBITDA and free cash flow compared with the same period in 2006.


Nexstar Broadcasting owns KSNF in Joplin and KSFX in Springfield and manages KODE in Joplin and KOLR in Springfield.

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