Nexstar Media Group’s profits fell in the fourth quarter on a weak ad market and a loss at the CW Network.
Net income fell 44% to $100 million, or $3.32 a share, from $178 million, or $5.30 a share, a year ago.
Revenue fell 12.3% to $1.3 billion
The CW network, of which Nexstar owns a 75% stake, had a loss of $50 million on an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) basis, compared to a $64 million loss in the third quarter
The CW generated $55 million in revenue in Q4, down from $66 million.
Television advertising revenue fell 35.5% to $479 million. The big drop was mostly due to the lack of significant political advertising in a non-election year, but core advertising revenue (excluding political spending) was down 5.9% to $449 million.
Distribution revenue rose 14.3% to $704 million.
Digital revenue fell 5.4% to $106 million.
For 2024, Nexstar said it expects adjusted EBITDA to be between $2.085 billion and $2.195 billion.
“Nexstar’s fourth-quarter financial results outperformed consensus expectations in key financial metrics,” said CEO Perry Sook.
“The power of the broadcast model and its ability to reach the largest audience of any medium with important news, sports and entertainment content is as strong as ever, reflected by the record audience delivery for NFL and Super Bowl, Grammys and other live sports and event programming,” Sook said. “As we move into 2024, an election year, we look forward to once again demonstrating the value of broadcast television to candidates and campaigns looking to communicate to the electorate through political advertising on television.”
