Nexstar Q2 Revenue Up 42%Core biz even higher; earnings soar on the back of Newport TV acquisition 8/07/2013 11:46:57 AM Eastern
Nexstar Broadcasting Group reported second quarter net revenues of $126.2 million, up 42% from the same quarter a year before. Core revenue was $95 million, a whopping 44% higher than core in the previous year's second quarter. Local revenue was up 41% in the second quarter, while national revenue grew 52%.
Nexstar's acquisitions, including a $285.5 million pickup of a dozen Newport TV stations last year, helped pace the record revenue.
"Nexstar's growth and operating momentum is accelerating in 2013 and we remain confident that continued year-over-year growth in all of our non-political revenue sources in the second half of the year will result in record annual revenue and free cash flow," said Perry Sook, president and CEO. "Reflecting contributions from recently completed acquisitions as well as our focus on managing operations for current cash flow and future growth, all of our non-political revenue sources posted significant second quarter increases leading to record second quarter net revenue, adjusted EBITDA and free cash flow."
Second quarter retransmission fee and online revenue rose 65.3% to $32.6 million, and accounted for 26% of net revenue in the quarter.
In April, Nexstar and Mission Broadcasting agreed to acquire 19 stations from Communications Corporation of America and White Knight Broadcasting for $270 million.
"When completed later this year, these stations will add seven duopolies to our operating base and the transaction will expand our geographic diversity and scale to 91 stations in 48 markets, of which 33 will be duopoly markets," said Sook.
Nexstar owns, operates, programs or provides sales and other services to 72 television stations and 17 related digital multicast signals in 41 markets, reaching approximately 12.1% of U.S. television households. Assuming completion of all announced transactions, Nexstar will own or service 91 stations, reaching approximately 13.9% of U.S. television households.
Sook expects the expanded Nexstar to generate $100 million in additional net revenue and over $50 million in annual incremental broadcast cash flow beginning in 2014.