Nexstar Broadcasting Group reported second-quarter net revenue of $88.9 million, 17.7% more than it posted in the second quarter of 2011. Core revenue was up 6.7% in the quarter, paced by a 15.1% increase in national advertising.
"Nexstar achieved record second-quarter net revenue based on the strength of our core television operations and rising contributions from our retransmission and e-Media revenue streams," said Perry Sook, Nexstar chairman, president and CEO. "Nexstar's core and political revenue strength was again complemented by our continued success in leveraging the traditional television broadcasting operating model and our locally focused content and advertiser relationships into a diversified model of high margin revenue streams."
Political revenue was nearly $6 million in the quarter, up 194.4%. Online revenue was $4.4 million, an 8.4% increase. Retransmission fee revenue tallied $15.3 million, up nearly 78% from the same quarter last year.
Sook acknowledged Nexstar's recent $285.5 million acquisition, along with closely aligned Mission Broadcasting, of 12 stations from the Newport TV bunch.
"Nexstar's corporate and operating teams are generating strong returns from our existing base of operations with another quarter of record operating results including net revenue, EBITDA, free cash flow and margins," he said. "Of significance to our shareholders, last month Nexstar and Mission announced the accretive acquisition of 12 additional stations which will expand our operating base and lead to substantial free cash flow growth without materially affecting our leverage profile. With expectations for free cash flow accretion in the first year of ownership of the new stations approximately 45% over the levels expected to be generated by Nexstar's and Mission's existing operations, we are highly confident that the company will be positioned to aggressively address outstanding debt while potentially deploying free cash flow for shareholder enhancing actions."