Nexstar Media Group (NXST) 2025 Conference Summary Company Overview - **Company**: Nexstar Media Group (NXST) - **Date**: September 03, 2025 - **Key Speakers**: Perry Sook (CEO), Lee Ann Gliha (CFO) Industry Insights - **Focus on Local Assets**: Nexstar has differentiated itself from other media companies by focusing on local television station acquisitions rather than national assets. This strategy is seen as more sustainable and resilient in the long term [4][5][10]. - **Competitive Moat**: The existing infrastructure of local stations creates a competitive advantage that is difficult for others to replicate. The company has invested significantly in property, plant, and equipment to build its local presence [5][10]. - **Advertising Relationships**: Nexstar maintains relationships with over 40,000 small and medium-sized businesses (SMBs), which provides a more stable advertising revenue stream compared to national advertising, which is dominated by a few large holding companies [6][9]. Financial Performance and Strategy - **Revenue Growth**: Nexstar reported approximately $5 billion in revenue, with significant growth driven by distribution revenue. The company aims to leverage its scale to negotiate better terms with distributors and advertisers [15][18]. - **Tegna Acquisition**: The pending acquisition of Tegna is expected to enhance Nexstar's market presence, allowing it to control over 20% of local TV station inventory in the U.S. and reach 80% of the population [10][23]. - **Synergies from Acquisitions**: Nexstar identified $300 million in synergies from the Tegna deal within the first year, building on previous experiences with acquisitions [43][44]. NewsNation and The CW - **NewsNation**: Launched five years ago, NewsNation has evolved into a 24/7 cable news source, focusing on balanced news coverage. It has been profitable from day one and is the fastest-growing cable network over the past year [56][58]. - **The CW**: Nexstar has pivoted The CW towards live sports programming, which now constitutes over 40% of its schedule. The company has invested $1 billion in sports rights, leading to increased viewership and engagement [60][62]. Regulatory Environment - **FCC Regulations**: Nexstar is actively engaging with regulators regarding the national ownership cap and local ownership rules. The company believes there is a favorable regulatory environment for potential deregulation, which could facilitate further acquisitions [30][32][40]. Key Takeaways - **Local Focus**: Nexstar's strategy of focusing on local television stations is seen as a key differentiator in a competitive media landscape [4][10]. - **Scale Advantages**: The company is leveraging its scale to negotiate better terms and enhance its operational efficiencies [15][18]. - **Growth Opportunities**: The Tegna acquisition and the expansion of NewsNation and The CW present significant growth opportunities for Nexstar [23][56][60]. - **Regulatory Momentum**: There is a sense of urgency to capitalize on the current regulatory environment to pursue further growth and acquisitions [30][32].

Core Viewpoint - Nexstar Media Group announced the acquisition of Tegna, Inc. for $6.2 billion, marking a significant development in the media merger landscape [3]. Group 1: Acquisition Details - Nexstar is already the largest owner of broadcast television stations in the U.S. and aims to enhance its scale and revenue through this acquisition [3][6]. - The deal is expected to generate approximately $300 million in synergies, primarily through cost-cutting measures [6]. - Tegna's corporate journey has been tumultuous, having been spun off from Gannett in 2015 and facing a failed merger attempt with Standard General in 2022 [5]. Group 2: Regulatory Considerations - The acquisition may exceed the existing nationwide cap on the percentage of U.S. households that one TV station ownership group can reach, raising potential regulatory challenges [7]. - The broadcasting industry has long sought to lift this cap, but significant legal and regulatory hurdles remain, particularly in the context of the current political landscape [8]. Group 3: Market Dynamics - The regional sports network (RSN) market has been struggling, leading to gains for local broadcasters as teams shift their broadcasts to local stations [10][11]. - Local broadcasters have seen significant increases in ratings and engagement as teams like the Phoenix Suns and Florida Panthers move away from RSNs [11]. - The competition for local sports rights is expected to intensify, potentially benefiting broadcasters as they seek reliable content to attract viewers [12]. Group 4: Network and Affiliate Relationships - The relationship between major networks and local affiliates is evolving, with networks increasingly requiring affiliates to contribute to the costs of national sports rights [13][14]. - There is a risk that powerful entities like Nexstar may resist paying affiliate fees, prompting networks to explore direct partnerships with local cable operators [14].

Group 1: Hong Kong Stocks - Chow Sang Sang (00116) surged over 18%, expecting a mid-term profit attributable to shareholders of approximately HKD 900 million to 920 million [1] - XPeng Motors (09868) rose over 4%, reporting a 125.3% year-on-year revenue growth in Q2, achieving a historical high for a single quarter [1] - Sunny Optical Technology (02382) increased over 6%, with a 52.56% year-on-year rise in mid-term profit attributable to shareholders for the six months ending June 30, 2025 [1] - China Gold International (02099) gained over 3%, reporting a turnaround to profitability in the first half of 2025, supported by a rich resource reserve and stable production [1] - Hansoh Pharmaceutical (03692) fell over 8%, announcing a 6.5% discount on a placement to raise nearly HKD 3.9 billion for innovative drug development [1] - Pop Mart (09992) rose over 6%, with adjusted net profit in the first half of 2025 increasing 3.6 times year-on-year [1] - Kunlun Energy (00135) dropped over 3%, reporting a 4.36% year-on-year decrease in mid-term profit attributable to shareholders for the first half of 2025 [1] Group 2: Other Stocks - Gilead Sciences (01672) fell over 8%, announcing a placement to raise a net amount of HKD 468 million, while its controlling shareholder cashed out nearly HKD 390 million [2] - Yixin Group (02858) rose over 1%, reporting a 28% year-on-year increase in adjusted net profit for the first half of 2025, with financial technology revenue soaring 124% [2] - Lithium stocks declined, with Ganfeng Lithium (01772) and Tianqi Lithium (09696) both dropping nearly 6%, amid inventory pressure in the lithium carbonate spot market [2] Group 3: US Stocks - Palo Alto Networks (PANW.US) rose 3.06%, exceeding expectations in Q4 earnings and providing optimistic guidance for future earnings [3] - BHP Group (BHP.US) increased 0.51%, reporting dividends exceeding expectations despite weak iron ore and coal prices [3] - NIO (NIO.US) rose 4.11%, with its L90 model delivering 6,400 units in 20 days since launch, with the factory operating at full capacity [3] - New Oriental (EDU.US) fell 2.79%, influenced by a drop in Oriental Selection's stock, while denying regulatory investigation rumors [3] - Viking Therapeutics (VKTX.US) plummeted 42.12% after reporting adverse side effects in its experimental obesity drug trials [4] - Arm (ARM.US) dropped 5.00%, as it hired Amazon's AI chip director to advance its chip development plans [4] - Home Depot (HD.US) rose 3.17%, reaching a new high since January, with Q2 net sales meeting market expectations [4] - Best Buy (BBY.US) increased 3.20%, launching a third-party online shopping platform to expand product variety [4] - Nexstar Media Group (NXST.US) rose 0.65%, announcing a $6.2 billion acquisition of Tegna [4] - Aurora Innovation (AUR.US) fell over 8%, closing down 7.14% after a short-seller report questioned its profit potential [5] - Boeing (BA.US) dropped 3.19%, with Airbus A320 deliveries expected to surpass Boeing's soon [5]

Acquisition Overview - Nexstar Media Group is acquiring Tegna for $6.2 billion in cash, creating a significant local TV broadcasting entity as the industry anticipates regulatory changes to facilitate consolidation [1][12] - The acquisition values Tegna shares at $22 each, reflecting a 31% premium over the company's average trading price prior to the announcement [1][9] Competitive Landscape - Nexstar outbid rival Sinclair, which had offered between $25 and $30 per share, despite Sinclair's lower market capitalization of $1 billion compared to Nexstar's $6.3 billion [2][3] - Sinclair is burdened with over $4 billion in debt, complicating its ability to pursue major acquisitions [3] Strategic Rationale - Nexstar's CEO Perry Sook emphasized that the deal aligns with the Trump administration's deregulatory policies, allowing local broadcasters to enhance their reach and compete against larger tech and media companies [4] - The merger will expand Nexstar's presence in key metropolitan areas such as Atlanta, Phoenix, Seattle, and Minneapolis, thereby strengthening its national coverage [4][11] Operational Synergies - The combination of Tegna's television properties with Nexstar's extensive station network is expected to reinforce Nexstar's dominance in local broadcasting [7] - Sook highlighted Nexstar's successful acquisition history, including the purchase of Tribune Media, and outlined strategies to enhance local programming and achieve cost efficiencies [7][8] Industry Context - The deal comes at a challenging time for traditional linear television, as broadcasters face competition from streaming platforms and tech companies for viewers and advertising revenue [12] - The merger is seen as a means for stations to better compete in a fragmented media landscape [12]

Nexstar Media Group (NXST) Conference Call Summary Company and Industry Overview - **Company**: Nexstar Media Group (NXST) - **Industry**: Local Broadcast Television and Media Key Points and Arguments 1. **Acquisition Announcement**: Nexstar announced the proposed acquisition of TEGNA, marking a significant step in the company's growth strategy and the local broadcast television industry [6][12] 2. **Financial Impact**: The combined company is projected to generate over $8 billion in revenue and $2.6 billion in EBITDA based on the last eight quarters' results, positioning Nexstar alongside major players like Fox and Paramount [7][12] 3. **Strategic Rationale**: The acquisition aligns with Nexstar's commitment to localism and aims to enhance scale, geographic reach, and community impact, while delivering value to shareholders [6][7][12] 4. **Local Journalism Commitment**: The merger is expected to strengthen local journalism, providing balanced and accurate news coverage amidst competition from big tech companies [8][9] 5. **Regulatory Environment**: Nexstar is optimistic about regulatory changes that could facilitate the acquisition, including the lifting of the national ownership cap and revisions to market ownership rules [9][10][28] 6. **Operational Synergies**: Nexstar anticipates approximately $300 million in synergies from the acquisition, expected to be realized in the first year post-close, which is about 37% of TEGNA's adjusted EBITDA for the last eight quarters [11][18][19] 7. **Market Reach**: The combined entity will operate 265 full-power television stations across 44 states, reaching approximately 80% of U.S. television households [15][42] 8. **Digital Opportunities**: The acquisition will enhance Nexstar's digital capabilities, particularly through TEGNA's Premion, which will strengthen digital product offerings [11][91] 9. **Advertising Strategy**: Nexstar aims to modernize its advertising approach to compete more effectively with digital platforms, focusing on impression-based selling and improving measurement systems [82][86] 10. **Long-term Growth**: The transaction is viewed as a defining moment for Nexstar, expected to accelerate growth, strengthen leadership, and enhance shareholder value [12][94] Additional Important Content 1. **Regulatory Break Fees**: The merger agreement includes a regulatory break fee of $125 million and a reverse fee of $120 million if the deal is terminated due to a higher bid [61][63] 2. **Integration Experience**: Nexstar has a proven track record of successful integrations from past acquisitions, which will be applied to the TEGNA merger [17][19] 3. **Community Impact**: The acquisition is expected to benefit local communities by enhancing the quality and quantity of local news programming [10][16] 4. **Future Acquisitions**: While focusing on the TEGNA deal, Nexstar remains open to exploring other acquisition opportunities that align with its growth strategy [44][46] This summary encapsulates the key discussions and insights from the Nexstar Media Group conference call regarding the acquisition of TEGNA, highlighting the strategic, financial, and operational implications for the company and the local broadcast television industry.

Group 1 - Nexstar Media Group (NXST.US) announced a cash acquisition of Tegna (TGNA.US) at $22 per share, representing a 31% premium over Tegna's 30-day average stock price as of August 8 [1] - The total value of the transaction is $6.2 billion, which includes Tegna's debt and estimated expenses [1] - The acquisition is expected to be completed in the second half of 2026 [1] Group 2 - Nexstar's CEO, Perry Sook, stated that initiatives promoted by the Trump administration have provided local broadcasters with opportunities to expand influence and compete more effectively against large tech companies and traditional media [1] - The company believes that acquiring Tegna is the best option to capitalize on these opportunities [1]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents Nexstar Media Group, Inc.'s unaudited financial statements and management's discussion and analysis [ITEM 1. Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201%20Financial%20Statements%20(Unaudited)) This section presents Nexstar Media Group, Inc.'s unaudited condensed consolidated financial statements and comprehensive notes for the periods ended June 30, 2025 and 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position at specific dates, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (in millions) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $234 | $144 | | Total current assets | $1,390 | $1,297 | | Total assets | $11,328 | $11,468 | | **LIABILITIES & EQUITY** | | | | Total current liabilities | $823 | $783 | | Debt | $6,275 | $6,399 | | Total liabilities | $9,072 | $9,200 | | Total stockholders' equity | $2,238 | $2,242 | - Total assets decreased by **$140 million (1.2%)** from December 31, 2024, to June 30, 2025, primarily due to a decrease in investments and network affiliation agreements, net, partially offset by an increase in cash and cash equivalents[8](index=8&type=chunk) - Cash and cash equivalents increased by **$90 million (62.5%)** from December 31, 2024, to June 30, 2025[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance over specific periods, detailing revenues, expenses, and net income Condensed Consolidated Statements of Operations (in millions, except per share) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenue | $1,229 | $1,269 | $2,462 | $2,553 | | Income from operations | $213 | $240 | $432 | $516 | | Net income | $91 | $106 | $188 | $273 | | Net income attributable to Nexstar Media Group, Inc. | $97 | $118 | $205 | $293 | | Basic EPS | $3.09 | $3.59 | $6.50 | $8.85 | | Diluted EPS | $3.06 | $3.54 | $6.43 | $8.71 | - Net revenue decreased by **3.2%** for the three months ended June 30, 2025, and by **3.6%** for the six months ended June 30, 2025, compared to the same periods in 2024[10](index=10&type=chunk) - Net income attributable to Nexstar Media Group, Inc. decreased by **17.8%** for the three months and **30.0%** for the six months ended June 30, 2025, year-over-year[10](index=10&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity and Redeemable Noncontrolling Interests](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20and%20Redeemable%20Noncontrolling%20Interests) This section details changes in the company's equity structure, including stock repurchases, dividends, and net income impacts Key Changes in Stockholders' Equity (in millions) | Item | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--------------------------------------- | :------------------------------- | :----------------------------- | | Balances as of March 31, 2025 / Dec 31, 2024 | $2,231 / $2,242 | $2,242 | | Purchase of treasury stock | $(51) | $(126) | | Stock-based compensation expense | $21 | $39 | | Dividends declared on common stock | $(56) | $(113) | | Net income (loss) | $95 | $202 | | Balances as of June 30, 2025 | $2,238 | $2,238 | - The company repurchased **311,998 shares** for **$51 million** during the three months ended June 30, 2025, and **753,162 shares** for **$126 million** during the six months ended June 30, 2025[11](index=11&type=chunk)[13](index=13&type=chunk) - Dividends declared on common stock amounted to **$1.86 per share** for the three months and **$3.72 per share** for the six months ended June 30, 2025[11](index=11&type=chunk)[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in millions) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $584 | $452 | | Net cash used in investing activities | $(89) | $(39) | | Net cash used in financing activities | $(405) | $(414) | | Net increase (decrease) in cash and cash equivalents | $90 | $(1) | | Cash and cash equivalents at end of period | $234 | $146 | - Net cash provided by operating activities increased by **$132 million (29.2%)** year-over-year for the six months ended June 30, 2025[15](index=15&type=chunk) - Net cash used in investing activities increased by **$50 million (128.2%)** year-over-year, primarily due to an acquisition and lower proceeds from investment disposal[15](index=15&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements [Note 1: Organization and Business Operations](index=9&type=section&id=Note%201%3A%20Organization%20and%20Business%20Operations) This note describes Nexstar's business, including its television stations, digital assets, and ownership interests in other media entities - Nexstar is a diversified media company operating **201 full power television stations** and **one AM radio station** in **116 markets** across **40 states and D.C.**, reaching approximately **39% of U.S. television households** as of June 30, 2025[17](index=17&type=chunk) - The company holds a **78.7% ownership interest** in The CW Network, LLC, and a **31.3% stake** in Television Food Network, G.P. (TV Food Network)[17](index=17&type=chunk) - Digital assets include **138 local websites**, **229 mobile applications**, **72 connected television applications**, and **three free ad-supported TV channels**[17](index=17&type=chunk) [Note 2: Summary of Significant Accounting Policies](index=9&type=section&id=Note%202%3A%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and methods used in preparing the condensed consolidated financial statements - Nexstar consolidates entities where it has controlling financial interests, including Variable Interest Entities (VIEs) through local service agreements and guarantees of obligations[18](index=18&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - The company increased its ownership in The CW from **77.7% to 78.7%** during Q2 2025; redeemable noncontrolling interests are presented as mezzanine equity due to put/call rights[30](index=30&type=chunk)[31](index=31&type=chunk) - Nexstar adopted ASU 2023-07 (Segment Reporting) retrospectively and is evaluating ASU 2024-03 (Expense Disaggregation) for future impact[33](index=33&type=chunk)[35](index=35&type=chunk) [Note 3: Acquisition](index=14&type=section&id=Note%203%3A%20Acquisition) This note details the acquisition of WBNX-TV assets, including the purchase price and primary asset acquired - On January 31, 2025, Nexstar acquired certain assets of WBNX-TV (Cleveland, OH) for a **$22 million cash purchase price**, primarily consisting of a **$20 million FCC license**[36](index=36&type=chunk) [Note 4: Intangible Assets and Goodwill](index=14&type=section&id=Note%204%3A%20Intangible%20Assets%20and%20Goodwill) This note provides a breakdown of the company's intangible assets and goodwill, including changes and estimated amortization expenses Intangible Assets and Goodwill (in millions) | Asset Type | June 30, 2025 (Net) | December 31, 2024 (Net) | | :-------------------------------- | :------------------ | :-------------------- | | Goodwill | $2,924 | $2,922 | | FCC licenses | $2,949 | $2,929 | | Network affiliation agreements, net | $1,400 | $1,494 | | Other intangible assets, net | $331 | $353 | | Total definite-lived intangible assets | $1,731 | $1,847 | - Goodwill increased by **$2 million** and FCC licenses increased by **$20 million** due to the WBNX-TV acquisition[37](index=37&type=chunk) Estimated Amortization Expense for Definite-Lived Intangible Assets (in millions) | Period | Amount | | :---------------- | :----- | | Remainder of 2025 | $151 | | 2026 | $280 | | 2027 | $265 | | 2028 | $240 | | 2029 | $222 | | 2030 | $178 | | Thereafter | $395 | | **Total** | **$1,731** | [Note 5: Investments](index=15&type=section&id=Note%205%3A%20Investments) This note details the company's equity method and other equity investments, including financial performance of TV Food Network Investments (in millions) | Investment Type | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Equity method investments | $772 | $873 | | Other equity investments | $4 | $4 | | **Total investments** | **$776** | **$877** | - Nexstar's **31.3% equity method investment** in TV Food Network had a book value of **$753 million** as of June 30, 2025, down from **$857 million** at December 31, 2024[40](index=40&type=chunk)[43](index=43&type=chunk) TV Food Network Transactions and Financials (in millions) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cash distributions received | $12 | $19 | $125 | $138 | | Recognized share in TV Food Network's net income | $28 | $34 | $55 | $71 | | TV Food Network Net revenue | $214 | $253 | $416 | $502 | | TV Food Network Net income | $92 | $109 | $173 | $228 | [Note 6: Accrued Expenses](index=16&type=section&id=Note%206%3A%20Accrued%20Expenses) This note presents a breakdown of accrued expenses, highlighting changes in key categories Accrued Expenses (in millions) | Category | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :---------------- | | Compensation and related taxes | $97 | $91 | | Interest payable | $57 | $56 | | Network affiliation fees | $94 | $77 | | Other | $84 | $90 | | **Total Accrued Expenses** | **$332** | **$314** | - Total accrued expenses increased by **$18 million (5.7%)** from December 31, 2024, to June 30, 2025, primarily driven by an increase in network affiliation fees[47](index=47&type=chunk) [Note 7: Debt](index=16&type=section&id=Note%207%3A%20Debt) This note details the company's long-term debt structure, including recent refinancing activities and compliance with covenants Long-Term Debt (in millions) | Debt Type | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | Nexstar Revolving loans, due June 2030 | $144 | $- | | Nexstar Term Loan A, due June 2030 | $1,905 | $- | | Nexstar Term Loan A, due June 2027 | $- | $2,121 | | Nexstar Term Loan B, due June 2032 | $1,300 | $- | | Nexstar Term Loan B, due September 2026 | $- | $1,358 | | 5.625% Notes, due July 2027 | $1,714 | $1,714 | | 4.75% Notes, due November 2028 | $1,000 | $1,000 | | Mission Revolving loans, due June 2030 | $62 | $- | | Mission Revolving loans, due June 2027 | $- | $62 | | Mission Term Loan B, due June 2028 | $288 | $290 | | **Total outstanding principal** | **$6,413** | **$6,545** | | **Long-term debt, net of current portion** | **$6,275** | **$6,399** | - Nexstar and Mission refinanced their senior secured credit facilities on June 27, 2025, introducing new revolving and term loans with extended maturities and lower interest margins[50](index=50&type=chunk)[55](index=55&type=chunk) - As of June 30, 2025, Nexstar had **$586 million** and Mission had **$14 million** in unused revolving loan commitments, and the Company was in compliance with all financial covenants[53](index=53&type=chunk)[57](index=57&type=chunk) [Note 8: Leases](index=19&type=section&id=Note%208%3A%20Leases) This note provides information on the company's operating lease assets and liabilities, including future minimum lease payments Operating Lease Information (in millions) | Item | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | Operating lease right-of-use assets, net | $269 | $276 | | Current operating lease liabilities | $40 | $37 | | Noncurrent operating lease liabilities | $250 | $253 | | Weighted Average Remaining Lease Term | 8 years | 8 years | | Weighted Average Discount Rate | 4.8% | 4.9% | | Cash paid for operating leases (six months) | $30 | $32 | Future Minimum Lease Payments (in millions) | Period | Operating Leases | | :----------------------- | :--------------- | | Remainder of 2025 | $27 | | 2026 | $51 | | 2027 | $46 | | 2028 | $42 | | 2029 | $40 | | 2030 | $36 | | Thereafter | $114 | | **Total future minimum lease payments** | **$356** | [Note 9: Retirement and Postretirement Plans](index=20&type=section&id=Note%209%3A%20Retirement%20and%20Postretirement%20Plans) This note details the net periodic benefit cost for pension plans and expected contributions Pension Benefit Plans Net Periodic Benefit Cost (Credit) (in millions) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest cost | $19 | $19 | $39 | $38 | | Expected return on plan assets | $(26) | $(25) | $(52) | $(50) | | Amortization of net gain | $(1) | $(1) | $(3) | $(3) | | **Net periodic benefit credit** | **$(8)** | **$(7)** | **$(16)** | **$(15)** | - Nexstar expects to contribute **$15 million** to its qualified pension benefit plans in 2025[63](index=63&type=chunk) [Note 10: Commitments and Contingencies](index=20&type=section&id=Note%2010%3A%20Commitments%20and%20Contingencies) This note outlines the company's guarantees, ongoing litigation, tax appeals, and regulatory matters - Nexstar guarantees Mission's senior secured credit facility, with a maximum potential exposure of **$364 million** as of June 30, 2025[64](index=64&type=chunk) - The company is involved in ongoing Local TV Advertising Antitrust Litigation, with a trial date set for April 2026, and denies all allegations[68](index=68&type=chunk)[70](index=70&type=chunk) - The IRS appealed the Tax Court's decision regarding the Chicago Cubs Transactions, with a ruling from the U.S. Court of Appeals expected in the second half of 2025, with Nexstar believing the tax impact is not material[75](index=75&type=chunk)[76](index=76&type=chunk) - The FCC issued a Notice of Apparent Liability (NAL) to Nexstar and Mission for alleged unauthorized transfer of control and national television ownership limit violations related to WPIX, proposing forfeitures and potential divestiture[78](index=78&type=chunk) [Note 11: Equity](index=23&type=section&id=Note%2011%3A%20Equity) This note details share repurchase activities and dividend declarations, reflecting capital returns to stockholders - Nexstar repurchased **753,162 shares** of common stock for **$125 million** during the six months ended June 30, 2025, leaving **$1.4 billion** remaining under the share repurchase authorization[79](index=79&type=chunk) - The board of directors approved a **10% increase** in the quarterly cash dividend to **$1.86 per share**, effective Q1 2025[81](index=81&type=chunk) [Note 12: Income Taxes](index=23&type=section&id=Note%2012%3A%20Income%20Taxes) This note provides details on income tax expense, effective tax rates, and the evaluation of new tax legislation Income Tax Expense and Effective Tax Rates | Period | Income Tax Expense (in millions) | Effective Tax Rate | | :--------------------------------------- | :------------------------------- | :----------------- | | Three Months Ended June 30, 2025 | $39 | 30.0% | | Three Months Ended June 30, 2024 | $43 | 28.9% | | Six Months Ended June 30, 2025 | $80 | 29.9% | | Six Months Ended June 30, 2024 | $105 | 27.8% | - The effective tax rate for the three months ended June 30, 2025, increased to **30.0%** from **28.9%** in 2024, primarily due to permanent differences and excess benefit from restricted stock units, partially offset by changes in valuation allowance[82](index=82&type=chunk)[83](index=83&type=chunk) - The company is evaluating the potential effects of the newly signed 'One Big Beautiful Bill Act' (H.R.1) on its consolidated financial statements[87](index=87&type=chunk) [Note 13: Income Per Share](index=24&type=section&id=Note%2013%3A%20Income%20Per%20Share) This note presents basic and diluted earnings per share, along with weighted average shares outstanding Income Per Share (in millions, except per share amounts, and shares in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income available to common stockholders | $93 | $118 | $197 | $293 | | Basic EPS | $3.09 | $3.59 | $6.50 | $8.85 | | Diluted EPS | $3.06 | $3.54 | $6.43 | $8.71 | | Weighted average shares outstanding – basic | 30,221 | 32,816 | 30,375 | 33,133 | | Weighted average shares outstanding – diluted | 30,514 | 33,287 | 30,719 | 33,656 | - Basic EPS decreased by **13.9%** for the three months and **26.6%** for the six months ended June 30, 2025, year-over-year[88](index=88&type=chunk) [Note 14: Fair Value Measurements](index=24&type=section&id=Note%2014%3A%20Fair%20Value%20Measurements) This note explains the classification of fair value measurements and provides fair value and carrying amounts for long-term debt - The company classifies fair value measurements into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[90](index=90&type=chunk) Fair Value and Carrying Amounts of Long-Term Debt (in millions) | Debt Type | June 30, 2025 Carrying Amount | June 30, 2025 Fair Value | December 31, 2024 Carrying Amount | December 31, 2024 Fair Value | | :--------------------------------------- | :------------------------------ | :----------------------- | :-------------------------------- | :----------------------- | | Nexstar Revolving loans, due June 2030 | $144 | $143 | $- | $- | | Nexstar Term Loan A, due June 2030 | $1,899 | $1,895 | $- | $- | | Nexstar Term Loan B, due June 2032 | $1,279 | $1,297 | $- | $- | | 5.625% Notes, due July 2027 | $1,716 | $1,707 | $1,716 | $1,667 | | 4.75% Notes, due November 2028 | $996 | $968 | $995 | $930 | | Mission Revolving loans, due June 2030 | $62 | $61 | $- | $- | | Mission Term Loan B, due June 2028 | $287 | $287 | $289 | $290 | [Note 15: Segment Data](index=25&type=section&id=Note%2015%3A%20Segment%20Data) This note provides financial information by reportable segment and revenue by source, including customer concentration - Nexstar's reportable Broadcast segment includes television stations, NewsNation, multicast networks, and WGN-AM radio, with other segments including The CW and national digital businesses[92](index=92&type=chunk) Reportable Broadcast Segment Financials (in millions) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenue | $1,150 | $1,205 | $2,319 | $2,427 | | Segment profit | $410 | $454 | $839 | $930 | Consolidated Net Revenue by Source (in millions) | Revenue Source | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Distribution | $733 | $734 | $1,495 | $1,495 | | Advertising | $475 | $522 | $934 | $1,034 | | Other | $21 | $13 | $33 | $24 | | **Total net revenue** | **$1,229** | **$1,269** | **$2,462** | **$2,553** | - Two customers each represented approximately **13-14%** of consolidated net revenue for the three and six months ended June 30, 2025 and 2024[102](index=102&type=chunk) [Note 16: Subsequent Events](index=28&type=section&id=Note%2016%3A%20Subsequent%20Events) This note discloses significant events that occurred after the balance sheet date, such as dividend declarations - On August 1, 2025, Nexstar's Board of Directors declared a quarterly cash dividend of **$1.86 per share**, payable on August 29, 2025[103](index=103&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Nexstar's financial condition and results for Q2 2025, highlighting revenue decline, debt refinancing, and capital returns [Executive Summary](index=29&type=section&id=Executive%20Summary) This summary highlights key financial performance, including revenue changes, capital returns, and debt refinancing efforts - Net revenue decreased by **3.2%** and **3.6%** for the three and six months ended June 30, 2025, respectively, compared to the prior year[110](index=110&type=chunk) - The company returned approximately **$106 million** (Q2 2025) and **$238 million** (YTD Q2 2025) to stockholders through stock repurchases and dividends[110](index=110&type=chunk) - Nexstar completed the refinancing of senior secured credit facilities on June 27, 2025, reducing interest margins, increasing revolver capacity, and extending maturities[111](index=111&type=chunk) [Overview of Operations](index=30&type=section&id=Overview%20of%20Operations) This section describes Nexstar's operational footprint, including its television stations, media networks, and consolidation practices - As of June 30, 2025, Nexstar owned, operated, programmed, or provided services to **201 full power television stations** and **one AM radio station** in **116 markets**[112](index=112&type=chunk) - The company holds a **78.7% ownership** in The CW, operates NewsNation, two multicast networks, and a **31.3% stake** in TV Food Network[113](index=113&type=chunk) - Nexstar consolidates VIEs due to local service agreements, guarantees of Mission Broadcasting's debt, power over economic performance, and purchase options for VIE stations[115](index=115&type=chunk) [Seasonality](index=30&type=section&id=Seasonality) This section explains how political advertising and consumer spending patterns influence the company's advertising revenue throughout the year - Advertising revenue is significantly higher in even-numbered years due to political advertising from congressional and presidential elections, and events like the Olympic Games[117](index=117&type=chunk) - Advertising revenue generally peaks in the second and fourth quarters due to increased consumer advertising in spring and retail advertising during the holiday season[117](index=117&type=chunk) - As 2025 is not an election year, a decrease in political advertising revenue is expected compared to 2024[117](index=117&type=chunk) [Historical Performance - Results of Operations](index=31&type=section&id=Historical%20Performance%20-%20Results%20of%20Operations) This section analyzes the company's operating results, including revenue, expenses, and net income trends over time Operating Results (in millions) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenue | $1,229 (↓3.2%) | $1,269 | $2,462 (↓3.6%) | $2,553 | | Distribution revenue | $733 (↓0.1%) | $734 | $1,495 (0%) | $1,495 | | Advertising revenue | $475 (↓9.0%) | $522 | $934 (↓9.7%) | $1,034 | | Income from operations | $213 (↓11.3%) | $240 | $432 (↓16.3%) | $516 | | Net income attributable to Nexstar Media Group, Inc. | $97 (↓17.8%) | $118 | $205 (↓30.0%) | $293 | | Interest expense, net | $(97) (↓14.2%) | $(113) | $(194) (↓14.5%) | $(227) | - Advertising revenue decreased by **$47 million** (Q2) and **$100 million** (YTD) year-over-year, primarily due to a **$36 million** (Q2) and **$68 million** (YTD) decrease in political advertising and ongoing market softness[120](index=120&type=chunk)[126](index=126&type=chunk) - Direct operating and SG&A expenses decreased by **$3 million** (Q2) and **$12 million** (YTD) due to restructuring initiatives, partially offset by debt refinancing costs[121](index=121&type=chunk)[127](index=127&type=chunk) - Income from equity method investments, net, decreased by **$5 million** (Q2) and **$16 million** (YTD) due to lower net income from TV Food Network[122](index=122&type=chunk)[127](index=127&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its financial obligations, detailing cash flows, debt levels, and compliance with covenants - The company believes it has sufficient unrestricted cash, positive working capital, and available revolving credit facilities to meet business operating requirements and service debt for at least the next 12 months[135](index=135&type=chunk) Cash Flow Summary (in millions) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $584 | $452 | | Net cash used in investing activities | $(89) | $(39) | | Net cash used in financing activities | $(405) | $(414) | | Net increase (decrease) in cash and cash equivalents | $90 | $(1) | | Cash and cash equivalents (period end) | $234 | $144 | - Total outstanding debt was **$6.383 billion** as of June 30, 2025, representing **73.9%** of combined capitalization[142](index=142&type=chunk) Principal Indebtedness Scheduled to Mature (in millions) | Debt Type | Total | Remainder of 2025 | 2026 | 2027-2028 | 2029-2030 | Thereafter | | :--------------------------------------- | :---- | :---------------- | :--- | :-------- | :-------- | :--------- | | Nexstar senior secured credit facility | $3,349 | $51 | $108 | $217 | $1,741 | $1,232 | | Mission senior secured credit facility | $350 | $1 | $3 | $284 | $62 | $- | | 5.625% Notes, due July 2027 | $1,714 | $- | $- | $1,714 | $- | $- | | 4.75% Notes, due November 2028 | $1,000 | $- | $- | $1,000 | $- | $- | | **Total** | **$6,413** | **$52** | **$111** | **$3,215** | **$1,803** | **$1,232** | - The company was in compliance with its maximum consolidated first lien net leverage ratio covenant of **4.25:1.00** as of June 30, 2025[149](index=149&type=chunk) [Issuer and Guarantor Summarized Financial Information](index=36&type=section&id=Issuer%20and%20Guarantor%20Summarized%20Financial%20Information) This section provides summarized financial data for the obligor group, including balance sheet and statements of operations information Summarized Balance Sheet Information for the Obligor Group (in millions) | Item | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | Total current assets | $1,278 | $1,160 | | Total noncurrent assets | $9,008 | $9,140 | | Total current liabilities | $732 | $685 | | Total noncurrent liabilities | $8,219 | $8,387 | Summarized Statements of Operations Information for the Obligor Group (in millions) | Item | Six Months Ended June 30, 2025 | | :--------------------------------------- | :----------------------------- | | Total net revenue | $2,365 | | Total costs and expenses | $1,865 | | Income from operations | $500 | | Net income attributable to Obligor Group | $236 | | Income from equity method investments, net | $19 | [Critical Accounting Estimates](index=37&type=section&id=Critical%20Accounting%20Estimates) This section confirms no material changes to critical accounting estimates previously disclosed in the annual report - Management believes there have been no material changes to the critical accounting estimates previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[160](index=160&type=chunk) [Recent Accounting Pronouncements](index=37&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 2 for details on recently issued accounting pronouncements and their expected impact - Refer to Note 2 of the Condensed Consolidated Financial Statements for a discussion of recently issued accounting pronouncements, including expected adoption dates and effects[161](index=161&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=ITEM%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section quantifies Nexstar's market risk exposure, primarily focusing on interest rate fluctuations on variable-rate debt - The company's term loan borrowings under senior secured credit facilities bear interest at variable rates ranging from **5.82% to 6.82%** as of June 30, 2025[163](index=163&type=chunk) - A **100 basis point increase** in SOFR would increase annual interest expense and decrease cash flow from operations by **$37 million** (excluding tax effects)[164](index=164&type=chunk) - Nexstar's **5.625% Notes** (due July 2027) and **4.75% Notes** (due November 2028) are fixed-rate debt and not exposed to market interest rate changes[164](index=164&type=chunk) [ITEM 4. Controls and Procedures](index=38&type=section&id=ITEM%204%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting - Nexstar's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance for timely and accurate financial reporting[165](index=165&type=chunk)[166](index=166&type=chunk) - No changes in internal control over financial reporting have materially affected, or are reasonably likely to materially affect, the company's internal control during the quarter ended June 30, 2025[167](index=167&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information on legal proceedings, risk factors, equity sales, and other required disclosures [ITEM 1. Legal Proceedings](index=38&type=section&id=ITEM%201%20Legal%20Proceedings) This section refers to Note 10 for details on legal proceedings, which management believes will not materially affect financial condition - The company is involved in litigation arising from ordinary business operations, such as contractual or employment disputes[169](index=169&type=chunk) - Management believes that any adverse outcome from these proceedings would not have a material adverse effect on its financial condition or results of operations[169](index=169&type=chunk) - Detailed discussion of ongoing litigation is provided in Note 10, 'Commitments and Contingencies'[169](index=169&type=chunk) [ITEM 1A. Risk Factors](index=38&type=section&id=ITEM%201A%20Risk%20Factors) This section confirms no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[170](index=170&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=ITEM%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details share repurchase activities, including shares bought back, average price, and remaining authorization - During the six months ended June 30, 2025, Nexstar repurchased **753,162 shares** of common stock for **$125 million**[171](index=171&type=chunk) - As of June 30, 2025, the remaining available amount under the share repurchase authorization was **$1.4 billion**[171](index=171&type=chunk) Summary of Common Stock Repurchases (in millions, except for share and per share information) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | | :----------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------------------- | | April 2 to 24, 2025 | 209,915 | $153.16 | $1,444 | | May 15 to 30, 2025 | 93,368 | $173.50 | $1,428 | | June 2, 2025 | 8,715 | $169.81 | $1,427 | | **Total for Q2 2025** | **311,998** | **$159.71** | | [ITEM 3. Defaults Upon Senior Securities](index=39&type=section&id=ITEM%203%20Defaults%20Upon%20Senior%20Securities) This section confirms no defaults occurred on senior securities during the reported period - None[173](index=173&type=chunk) [ITEM 4. Mine Safety Disclosures](index=39&type=section&id=ITEM%204%20Mine%20Safety%20Disclosures) This section indicates no mine safety disclosures are required for the reporting period - None[174](index=174&type=chunk) [ITEM 5. Other Information](index=39&type=section&id=ITEM%205%20Other%20Information) This section confirms no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers - None of the Company's directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended June 30, 2025[175](index=175&type=chunk) [ITEM 6. Exhibits](index=39&type=section&id=ITEM%206%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including credit agreement amendments, certifications, and XBRL documents - Exhibits include Amendment No. 7 and No. 8 to the Credit Agreement dated June 27, 2025, for Nexstar Media Inc. and Mission Broadcasting, Inc., respectively[176](index=176&type=chunk) - Certifications by Perry A. Sook (Chairman and CEO) and Lee Ann Gliha (CFO) pursuant to Sections 302 and 1350 of the Sarbanes-Oxley Act of 2002 are filed[176](index=176&type=chunk) - Inline XBRL Instance Document, Taxonomy Extension Schema, and Cover Page Interactive Data File are included[176](index=176&type=chunk)

Group 1 - Nexstar Media Group, Inc. held its Q2 2025 earnings call on August 7, 2025, with key participants including the Executive VP & CFO, President & COO, and the Founder, Chairman & CEO [1] - The call was recorded and facilitated by the Investor Relations representative, indicating a structured approach to investor communication [2] - Management's statements during the call included forward-looking statements, which are subject to risks and uncertainties that could lead to actual results differing from those projected [4]

Financial Data and Key Metrics Changes - Nexstar reported second quarter net revenue of $1,230,000,000, a decline of 3.2% compared to the prior year, primarily due to reduced political advertising [17] - Adjusted EBITDA for the second quarter was $389,000,000, representing a 31.7% margin, down $25,000,000 from $414,000,000 in the same quarter last year [24] - Adjusted free cash flow for the quarter was $101,000,000, an increase from $77,000,000 in the previous year [27] Business Line Data and Key Metrics Changes - Advertising revenue decreased by $47,000,000 or 9% year-over-year to $475,000,000, with a $36,000,000 decline in political advertising [18] - Distribution revenue was $733,000,000, essentially flat compared to the prior year, reflecting modest subscriber renewals and MVPD subscriber attrition [17] - The CW network achieved five consecutive quarters of audience growth and was ranked the eighth most-watched network for the first half of 2025 [22] Market Data and Key Metrics Changes - The advertising outlook remains stable, with non-political advertising forecasted to decline in the low single digits year-over-year for the third quarter [19] - Local television news remains the most trusted news source, with audiences of all ages turning to local news programming [11] - The CW's profitability improved by $21,000,000 year-over-year, driven by reduced amortization of broadcast rights and lower operating expenses [22] Company Strategy and Development Direction - Nexstar's strategy focuses on high-impact news and sports programming, with sports now accounting for over 40% of the CW's programming hours [20] - The company is pursuing regulatory reform opportunities, including potential changes to the national ownership cap and the top four rule [14][15] - Nexstar aims to renew distribution agreements and continue the CW's path to profitability, with expectations of achieving profitability in 2026 [16][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the advertising environment, noting that trends are performing as expected without significant negative impacts [72] - There are early signs of improvement in video subscriber trends, particularly from major MVPDs [6] - The company remains focused on executing its 2025 objectives and is energized by prospects for regulatory reform [16] Other Important Information - Nexstar returned $238,000,000 or 53% of adjusted free cash flow to shareholders through share repurchases and dividends [6] - The company refinanced its credit facilities and term loans, extending maturities and strengthening its capital structure [30] - The CW's losses in the quarter were better by about $21,000,000 compared to the previous year, with expectations of a 25% reduction in losses for the year [71] Q&A Session Summary Question: Thoughts on Chairman Carr's letters to networks and M&A opportunities - Management indicated that growing the national footprint is strategically important, and they are open to M&A opportunities that create shareholder value [34][35] Question: Importance of increasing O&Os for CW in M&A scenarios - While increasing O&Os is beneficial, it is not the primary strategic priority; the focus remains on overall shareholder value [46] Question: Additional sports opportunities for CW - Management expressed interest in pursuing more college sports and noted the positive response from the advertising community to CW's sports programming [55] Question: Economic environment and ad market trends - Management reported that the ad environment is performing as expected, with no significant negative trends observed [72] Question: Trends in digital advertising - Digital advertising continues to grow, particularly in local markets, with mid-single-digit growth overall [77] Question: CW losses and profitability outlook - CW losses improved by $21,000,000 year-over-year, with expectations of achieving profitability in 2026 [71]

Financial Data and Key Metrics Changes - Nexstar reported second quarter net revenue of $1,230,000,000, a decline of 3.2% compared to the prior year, primarily due to a reduction in political advertising [16] - Adjusted EBITDA for the second quarter was $389,000,000, representing a 31.7% margin, down $25,000,000 from $414,000,000 in the same quarter of the previous year [25] - Adjusted free cash flow for the quarter was $101,000,000, an increase from $77,000,000 in the prior year [27] Business Line Data and Key Metrics Changes - Distribution revenue was $733,000,000, essentially flat compared to the prior year, reflecting modest subscriber renewals and MVPD subscriber attrition [16] - Advertising revenue decreased by $47,000,000 or 9% year-over-year, with political advertising down $36,000,000 [17] - Non-political advertising declined by 2.5% year-over-year, with a notable decline in goods-based advertising, particularly in the automotive sector [17] Market Data and Key Metrics Changes - The company noted early signs of improvement in video subscriber trends from major MVPDs, although a definitive turnaround has not yet been observed [4] - Public trust in local broadcast journalism remains strong, with local television news cited as the most trusted news source according to a 2024 survey [10] Company Strategy and Development Direction - Nexstar is focused on regulatory reform, with recent developments suggesting potential changes to the national ownership cap and the top four rule, which could enhance market opportunities [13] - The company continues to emphasize high-impact news and sports programming, with sports now accounting for over 40% of CW's programming hours [19] - Nexstar aims to achieve profitability for the CW by 2026, with expectations of improved profitability of about 25% in 2025 over 2024 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed a stable outlook for advertising revenue despite broader economic uncertainties, noting that spending intentions remain positive [74] - The company remains optimistic about the advertising outlook, particularly in the context of upcoming political revenue impacts in the second half of the year [73] Other Important Information - Nexstar returned $106,000,000 to shareholders in the quarter, comprising $56,000,000 in dividends and $50,000,000 in stock repurchases [29] - The company refinanced its credit facilities, extending maturities and improving financial flexibility [30] Q&A Session Summary Question: Thoughts on Chairman Carr's letters to networks and M&A opportunities - Management indicated that growing the national footprint is strategically important, and they are open to M&A opportunities that create shareholder value [34] Question: Importance of increasing O&Os for CW in M&A scenarios - While increasing O&Os is beneficial, it is not the primary strategic priority; the focus remains on overall shareholder value [46] Question: Additional sports opportunities for CW - Management expressed interest in pursuing more college sports and noted ongoing discussions in that area [56] Question: Trends in digital advertising - Digital advertising continues to grow, particularly in the local business segment, with overall growth in the mid-single digits [77] Question: Updated thoughts on the economic environment - Management feels the advertising environment is performing as expected, with no significant negative trends observed [73]