Nexstar Media Group reported lower third-quarter net income, impacted by losses at The CW network.
Net income fell to $25 million, or 71 cents a share, from $289 million or $7.45 a share a year ago.
The CW contributed a $ 60 million loss in earnings before interest, taxes, depreciation and amortization (EBITDA).
Revenue in the period was down 10.8% year to year, to $1.132 billion.
Nexstar’s advertising revenue fell 22.5% to $410 million in a non-election year.
Core advertising revenue was down 2.3% to $391 million and political advertising was $19 million, compared to $129 million a year ago.
Distribution revenue was down 6.7% to $598 million, partly because of a carriage fee dispute with DirecTV that led to a lengthy blackout.
Digital revenues were up $15.1 million to $99 million.
“Third-quarter financial results primarily reflect the year-over-year decline in cyclical political advertising as well as the distribution revenue impact related to our successful negotiations with a distribution partner,” CEO Perry Sook said. “We expect the favorable terms of new distribution agreements reached year-to-date, in 2022 and other upcoming renewals, to drive strong, high-margin distribution revenue growth.”
Sook added that for 2024: “Nexstar will realize upside from presidential election year political advertising, reduced losses related to The CW Network and an improving economic environment. We have a clear set of objectives for creating the greatest long-term value for our shareholders and will continue to deploy cash in a manner that will deliver the highest returns.”
