Nexstar Media Group Reports Record $5.4 Billion Revenue and Significant Net Income Growth

Nexstar Media Group, Inc. reported a record net revenue of $5.4 billion for the fiscal year ending December 31, 2024, marking a 9.6% increase from $4.9 billion in 2023. The company's net income attributable to shareholders rose significantly to $722 million, compared to $346 million in the previous year. This growth was primarily driven by a substantial increase in political advertising revenue, which surged by $426 million due to the election year, alongside a $201 million rise in distribution revenue, attributed to favorable contract renewals and the return of partner stations on a major multichannel video programming distributor (MVPD).

In terms of operational changes, Nexstar expanded its programming offerings, notably increasing NewsNation's news programming to 24 hours a day, seven days a week. The company also renewed key affiliation agreements with major networks CBS and NBC, which are crucial for maintaining its broadcasting capabilities. Additionally, Nexstar's acquisition of WBNX-TV, an independent station in Cleveland, for $22 million in January 2025, further enhances its market presence.

Nexstar's operational metrics reflect its extensive reach, with over 200 television stations in 116 markets across 40 states, reaching approximately 70% of U.S. television households. The company employs around 13,005 individuals, including 6,000 journalists, and maintains relationships with over 40,000 advertisers. The digital segment of Nexstar's business also performed well, attracting nearly 103 million monthly unique users, positioning it among the top ten digital news and information properties in the U.S.

The company's financial health remains robust, with a focus on returning capital to shareholders through share repurchases and dividends. In 2024, Nexstar returned approximately $820 million to shareholders, including $601 million in stock buybacks and $219 million in dividends. The board of directors approved a 10% increase in the quarterly cash dividend to $1.86 per share, effective in the first quarter of 2025. However, Nexstar's total debt stood at $6.5 billion, representing 74.3% of its total capitalization, which poses potential risks in terms of financial flexibility and operational investments.

Looking ahead, Nexstar anticipates continued growth in both distribution and advertising revenues, particularly as it leverages its scale and market position. The company aims to enhance its digital offerings and expand its national broadcast and cable networks, including The CW and NewsNation. However, it remains vigilant regarding external economic factors, including inflation and interest rates, which could impact its operational performance and financial results in the future.