Nexstar Media Group Reports $1.234 Billion Revenue, 3.9% Decline in Q1 2025

Nexstar Media Group, Inc. reported a net revenue of $1.234 billion for the first quarter of 2025, reflecting a decrease of 3.9% compared to $1.284 billion in the same period of 2024. The decline was primarily attributed to a significant drop in advertising revenue, which fell by 10.2% to $460 million, largely due to a decrease in political advertising as 2025 is not an election year. In contrast, distribution revenue saw a slight increase of 0.1%, reaching $762 million, driven by contractual rate escalators and growth in virtual multichannel video programming distributor (vMVPD) subscribers.

Operating expenses for the quarter totaled $1.014 billion, a marginal increase from $1.009 billion in the prior year. Direct operating expenses rose slightly to $551 million, while selling, general, and administrative expenses decreased by 5.5% to $257 million, reflecting ongoing restructuring efforts. The company reported an income from operations of $220 million, down from $275 million in the previous year, and a net income attributable to Nexstar of $108 million, compared to $175 million in the first quarter of 2024.

In terms of strategic developments, Nexstar completed the acquisition of WBNX-TV, an independent television station in Cleveland, for $22 million in cash. This acquisition is part of Nexstar's strategy to expand its broadcasting footprint, which now includes 201 full-power television stations across 116 markets in 40 states and the District of Columbia. The company also increased its ownership interest in The CW Network from 77.1% to 77.7% during the quarter.

Nexstar's total assets as of March 31, 2025, were reported at $11.414 billion, a slight decrease from $11.468 billion at the end of 2024. The company maintained a strong cash position, with cash and cash equivalents increasing to $253 million from $144 million. The total outstanding debt was $6.495 billion, representing 74.3% of the company's capitalization. Nexstar's board of directors approved a 10% increase in its quarterly cash dividend to $1.86 per share, reflecting the company's commitment to returning capital to shareholders.

Looking ahead, Nexstar anticipates challenges in advertising revenue due to the absence of major political events in 2025, which typically drive higher advertising spending. However, the company remains focused on leveraging its diverse media assets and strategic acquisitions to enhance its market position. The management expressed confidence in maintaining compliance with financial covenants and accessing sufficient liquidity to support ongoing operations and capital expenditures.