Summary of Nexstar Media Group FY Conference Call Company Overview - **Company**: Nexstar Media Group (NasdaqGS:NXST) - **Date of Conference**: November 18, 2025 Key Points Industry Context - The media sector is undergoing significant changes, particularly regarding mergers and acquisitions (M&A) and regulatory environments [2][4][8] - The Federal Communications Commission (FCC) and Department of Justice (DOJ) are pivotal in shaping the regulatory landscape for media consolidation [4][9] M&A Activity - Nexstar's acquisition of Tegna was approved by Tegna shareholders with a 98% affirmative vote, marking a significant step in the merger process [3] - The filing of FCC applications is imminent, allowing the regulatory process to commence [3] - The DOJ's approach to antitrust issues is evolving, with constructive discussions indicating a willingness to consider new information [5][6] Regulatory Environment - The FCC's potential deregulation is seen as beneficial for the industry, with indications from the Trump administration and FCC Chairman Brendan Carr supporting pro-business policies [8][9] - The vacating of the FCC duopoly rule may lead to a more favorable environment for media consolidation [4] Synergies and Integration - Nexstar anticipates $300 million in EBITDA synergies from the Tegna acquisition, with 45% from net retransmission and 55% from operating expense synergies [13][15] - Integration efforts will focus on reducing corporate overhead and consolidating operations in overlapping markets [14][15] - Facility consolidation is expected to yield additional long-term savings, although it may take time to realize these benefits [19][20] Advertising Market Trends - Non-political advertising revenue was flat in Q3, with a slight decline expected in Q4 due to various factors, including programming changes and market conditions [44][46] - The overall advertising market is considered stable, with expectations for continued growth in retransmission revenues [28][33] Programming Strategy - Approximately 40% of CW's programming consists of live sports, with plans to increase this to around 50% [51] - The CW network has improved its ranking from 20th to 8th among broadcast and cable networks since Nexstar's acquisition [53] Future Outlook - Nexstar aims to leverage its scale to enhance local journalism and maintain a robust balance sheet, positioning itself as a leader in the local TV space [67][68] - The transition to ATSC 3.0 and the monetization of spectrum assets are seen as long-term growth opportunities, with initial commercial clients expected soon [60][63] Conclusion - Nexstar is focused on strategic growth through M&A, regulatory navigation, and enhancing its advertising and programming strategies, positioning itself for future success in the evolving media landscape [68]

Summary of Key Points from the Conference Call Industry Overview - The conference focused on the media and sports industry, featuring 13 companies and discussions on regulatory changes, consolidation, and digital media trends [1][2] - Media consolidation remains a significant topic, with notable deals such as Amazon's acquisition of MGM for $8.5 billion and the Discovery and WarnerMedia merger [3] - The shift from traditional media to digital media continues, with American consumers spending approximately eight hours daily on digital platforms, which is double the time spent on traditional media [4] Company Focus: EW Scripps - EW Scripps is a diversified media enterprise with a strong presence in local television, operating 61 TV stations and reaching over 36% of U.S. TV households [9][10] - The company has undergone significant transformation, focusing on expanding its local TV footprint from 27 stations to over 60 in the past decade [14] - Scripps aims to enhance connections between audiences and brands, as well as between advertisers and audiences, to drive financial benefits for shareholders [15] Financial Performance and Capital Allocation - Scripps' primary capital allocation priority is debt reduction, with leverage decreasing from 6x in Q2 of the previous year to 4.9x in the most recent quarter [17][18] - The company has directed 99% of discretionary cash flow towards debt paydown since the ION acquisition in 2021 [18] - Recent refinancing efforts have limited the increase in average debt costs to less than one percentage point despite a challenging rate environment [19] Regulatory Environment and Consolidation - There is optimism regarding deregulation in the broadcast industry, which could facilitate consolidation and benefit local broadcasters [22] - Scripps supports changes to antiquated ownership rules, emphasizing the need for regulations to adapt to the current competitive landscape, including competition from big tech [23][24] - The company sees opportunities for asset swaps and selective sales to improve operational performance rather than being a major buyer in the M&A market [31] Advertising Trends - Local advertising comprises 70% of Scripps' core advertising revenue, with national businesses accounting for 30% [59] - The advertising environment is challenging, with local businesses showing resilience while sectors like automotive are struggling [60][61] - Political advertising is expected to grow, with Scripps positioned to capture a significant share of spending in upcoming elections [79] Sports Programming Strategy - Scripps has developed a national sports strategy leveraging its reach through ION, focusing on underrepresented leagues like the WNBA and NWSL [51][54] - The company has seen significant audience growth, with the Florida Panthers' ratings up 149% compared to the previous RSN model [56] - Scripps anticipates a shift in MLB rights negotiations, likely following a model that combines linear and streaming platforms [57] Connected TV and Future Opportunities - Scripps has reported a 42% increase in connected TV revenue, now exceeding $100 million, indicating a strong growth area [87] - The company is optimistic about the potential of ATSC 3.0 technology to transform local broadcasting, with plans for significant developments in the coming years [94][96] Conclusion - Scripps is focused on improving operational performance, reducing debt, and navigating regulatory changes to enhance its competitive position in the media landscape [44][45] - The company is well-positioned to capitalize on growth opportunities in sports programming and connected TV while adapting to the evolving advertising environment [78][87]