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]