Nexstar Broadcasting Group reported net revenue of $60.4 million for the third quarter, a 14.1% decline from the same quarter in 2008. The group attributed the lower net revenue to an 87% reduction in gross political spending and what it calls "the overall downturn in advertising spending due to the impact of the current economic recession."
Nexstar also reported a 28.1% year-over-year increase in total revenue, which Nexstar Chairman/President/CEO Perry Sook attributed in part to increases in retransmission consent revenues.
"Nexstar's third quarter results highlight the benefits of our revenue initiatives related to retransmission consent agreements, e-MEDIA and management agreements; select accretive station acquisitions; and our success in generating new local direct advertising," said Sook. "Third quarter retransmission consent revenues increased 27.4% to $7.9 million while e-MEDIA revenues rose 8.8% to $3.0 million. While we continue to generate record aggregate quarterly revenue from these sources, Nexstar also recorded approximately $0.5 million of management fee revenue in the 2009 third quarter."
Sook said the future looks brighter for business. "While it is difficult to predict the pace of an economic recovery, we are seeing improvements in core advertising activity this fall," he said, "and are confident that Nexstar is well positioned to benefit from healthier levels of overall advertiser spending as it occurs, political and Olympic revenue in 2010 and continued growth of total revenue derived from retransmission consent agreements, e-MEDIA initiatives and management fees."