Financial Data and Key Metrics Changes - Nexstar reported third quarter net revenue of $1.2 billion, a decline of 12.3% compared to the prior year, primarily due to a reduction in political advertising [13] - Adjusted EBITDA for the third quarter was $358 million, representing a 29.9% margin, a decrease of $152 million from the previous year [23] - The company generated approximately $10 million in political advertising revenue during the quarter, primarily from statewide elections in Virginia and California [15] Business Line Data and Key Metrics Changes - Distribution revenue for the third quarter was $709 million, down 1.4% year-over-year, reflecting subscriber attrition and a resolution of a non-recurring customer claim [13] - Advertising revenue decreased by $146 million or 23.5% year-over-year, with non-political advertising remaining essentially flat [14] - The CW network delivered record performance with significant viewership growth, particularly in sports programming, which accounted for over 40% of its programming hours [10][18] Market Data and Key Metrics Changes - Time spent watching broadcast TV increased by 20% from August to September, marking the largest month-to-month gain since 2021 [8] - The NFL averaged 18 million viewers per game through Week 6, the highest average since the record 2015 season [9] - NewsNation ranked as the number one basic cable network for year-over-year growth in the third quarter, surpassing MSNBC and CNN in head-to-head telecasts [11] Company Strategy and Development Direction - The company announced a definitive agreement to acquire TEGNA for $6.2 billion, which is expected to enhance Nexstar's scale and geographic reach [4] - The acquisition is projected to be more than 40% accretive to Nexstar's standalone adjusted free cash flow, with anticipated synergies of approximately $300 million [5] - Nexstar aims to strengthen local broadcast journalism and expand competitive broadcasts and digital advertising solutions through the TEGNA acquisition [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the acquisition of TEGNA and its potential to create substantial value for shareholders [6] - The company anticipates a decreasing interest rate environment and a reset of distribution contracts at the end of the year, which are expected to drive shareholder value [82] - Management highlighted the importance of enhancing business processes to compete effectively in the advertising market [51] Other Important Information - The company is taking a disciplined approach to capital allocation, conserving cash for the TEGNA acquisition instead of share repurchases [6] - Nexstar's cash balance at the end of the quarter was $236 million, with a debt balance of $6.4 billion [27] Q&A Session Summary Question: Confidence in the deal closing on time - Management indicated that regulatory pieces are falling into place, and they are optimistic about the deal closing as planned [33] Question: Distribution revenue details - Management confirmed that the distribution revenue anomaly was a one-time event and will not affect future quarters [37] Question: Industry consolidation implications - Management believes a strong industry requires strong companies and supports healthy competition [40][41] Question: Outlook for the next political cycle - Management expects substantial political revenue in 2026, with broadcast continuing to dominate political advertising [43] Question: Priorities post-TEGNA acquisition - Management emphasized a focus on acquisitions that are accretive and the monetization of spectrum assets as key priorities [48][50] Question: Ad trends expectations for Q4 - Management does not anticipate significant changes in advertising categories but noted some pressure from previous year comparisons [67] Question: NFL media rights negotiations - Management expressed optimism about potential NFL negotiations, believing it could strengthen local broadcast positions [76][79]