Nexstar Media Group 2025 Conference Summary Company Overview - **Company**: Nexstar Media Group (NasdaqGS:NXST) - **Event**: 2025 Conference held on December 08, 2025 Key Highlights Acquisition and Regulatory Process - **Pending Acquisition**: Nexstar is focused on closing the pending acquisition of Tegna, with significant efforts in due diligence and regulatory compliance [4][6][59] - **FCC Process**: The FCC has put the transaction on public notice, indicating a positive regulatory process. The public comment phase is ongoing, expected to conclude by the end of January [6][59] - **DOJ Engagement**: Meetings with the DOJ are scheduled to discuss the transaction, with a focus on data-driven arguments to support the acquisition [16][17][59] Financial Expectations and Synergies - **EBITDA Synergies**: Nexstar anticipates $300 million in EBITDA synergies from the acquisition, with 45% from net retransmission and 55% from operating expense reductions. Most synergies are expected to be realized within the first 12 months [19][20] - **Leverage Post-Acquisition**: Pre-acquisition leverage is around 3.2 times, expected to rise to approximately 4 times post-acquisition, with plans to deleverage back to previous levels by 2028 [22] Advertising Market Outlook - **Positive Momentum**: The advertising market is showing positive signs, with expectations for slight growth in non-political advertising in Q4 2025. Political advertising is anticipated to increase significantly due to upcoming events like the FIFA World Cup and the Olympics [26][27][28] - **Political Advertising Revenue**: Nexstar has historically generated about $500 million from political advertising during election cycles, with expectations for continued growth in competitive markets [28][29] Local and Streaming Advertising - **Local Advertising Strategy**: Nexstar is already capturing local advertising through CTV and digital platforms, leveraging a strong local sales force to connect with small and medium businesses [31] - **Streaming Initiatives**: Nexstar is rolling out CTV apps for local stations and is engaged in partnerships to enhance streaming capabilities [32][33] Spectrum Transition and Monetization - **ATSC 3.0 Transition**: Nexstar is focused on transitioning to ATSC 3.0 for more efficient spectrum use, which could lead to significant revenue opportunities from non-video uses of the spectrum [51][52][54] - **Revenue Potential**: The company estimates that non-video uses could generate revenue comparable to current distribution revenue, potentially adding substantial value [54][58] Future M&A and Market Position - **Interest in Further M&A**: Nexstar remains open to follow-on acquisitions, particularly in local markets, to enhance its competitive position [24][25] - **Market Dynamics**: The company believes that the current media landscape will continue to evolve, providing opportunities for growth and consolidation in the broadcast industry [24][39] Additional Insights - **NASCAR Performance**: Improved viewership in NASCAR is attributed to consistent broadcasting on the same network, enhancing audience accessibility [48][49] - **CW Network Profitability**: The CW network is on track to achieve profitability, with significant improvements in programming costs and content strategy [43][44] Conclusion Nexstar Media Group is strategically positioned for growth through its pending acquisition of Tegna, with a focus on regulatory compliance, financial synergies, and leveraging opportunities in the evolving advertising and media landscape. The company is optimistic about its future prospects, particularly in political advertising and the transition to ATSC 3.0.

Company Overview - Array Digital Infrastructure is a leading wireless telecommunications provider in the U.S., operating nationally with a diversified service and product portfolio [6] - The company generates revenue through direct sales, installment contracts, tower rentals, and wholesale distribution to agents and resellers, serving consumer, business, and government customers [9] Financial Performance - For the third quarter, Array Digital Infrastructure reported operating revenue of $47.1 million, an increase of 83% year-over-year, driven by a new long-term master lease agreement with T-Mobile [10] - Site-rental revenue increased by 68%, and the company posted a net income of $108.8 million from continuing operations, a significant turnaround from a loss of $95.9 million in the previous year [10] - The company has ongoing spectrum monetization agreements totaling $178 million in expected proceeds [10] Recent Developments - Newtyn Management disclosed a new position in Array Digital Infrastructure, acquiring 1.35 million shares valued at $67.5 million, representing about 8.3% of its overall reported assets [2][8] - The stock price of Array Digital Infrastructure was $50.14, down 22% over the past year, underperforming the S&P 500, which increased by 13% during the same period [3] Strategic Focus - Array Digital Infrastructure has transitioned from a wireless operator to a pure-play tower company, indicating a significant transformation in its business model [7] - The company leverages multiple sales channels and recurring service revenues to maintain a broad market reach and customer engagement [6]

Financial Data and Key Metrics Changes - The company completed the sale of U.S. Cellular wireless business and certain spectrum assets to T-Mobile for $4.3 billion, which is expected to unlock significant shareholder value and strengthen the balance sheets of both Array and TDS [6][12][14] - Following the transaction, TDS's debt was reduced to approximately $364 million, with a plan to redeem about $1.1 billion in debt, resulting in annual interest savings of approximately $80 million and reducing the average cost of debt to just over 6% [12][14][15] - S&P raised TDS's credit rating to BBB- from BB, reflecting a strong balance sheet and growth outlook [19] Business Line Data and Key Metrics Changes - Array Digital Infrastructure now operates independently with approximately 4,400 towers and a new master license agreement with T-Mobile, which is expected to enhance revenue and profitability [7][26] - Third-party tower revenues increased by 12%, and the number of third-party colocations grew by 6% year-over-year [26][29] - TDS Telecom reported 27,000 new fiber service addresses added in the quarter, with a total of 10,300 fiber net additions, leading to a 19% growth in total fiber connections since last year [33][34] Market Data and Key Metrics Changes - The company anticipates receiving $2 billion from previously announced spectrum sales, with a portion expected later this year, subject to regulatory approvals [15][22] - The company is focused on monetizing approximately 70% of Array's total spectrum holdings, including transactions with AT&T and Verizon, which are expected to close in 2025 and 2026 [22][23] Company Strategy and Development Direction - The company aims to focus on its tower and fiber businesses, with plans to implement a regular dividend once spectrum transactions are completed [15][16] - Key strategic priorities include closing pending spectrum transactions, optimizing ground leases, and driving revenue growth through new colocations [24][25] - The company is evaluating M&A opportunities, particularly in fiber assets that synergize with existing properties [86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the tower business and the fiber program, emphasizing the importance of the new T-Mobile master license agreement [7][26] - The company expects to incur additional wind-down costs as it transitions from a wireless service provider to an independent tower company, which may impact profitability in the near term [30] - Management highlighted the competitive landscape in expansion markets as favorable, with a focus on increasing penetration rates in newly launched fiber areas [74] Other Important Information - The company plans to maintain its preferred stock as foundational capital for its fiber program and has no immediate plans to redeem them [12][14] - The company is committed to a disciplined financial policy while maintaining a conservative balance sheet [14] Q&A Session Summary Question: Update on TDS Telecom's fiber expansion plans - Management indicated that there is significant opportunity to expand the fiber footprint and will provide updates in upcoming quarters [51][52] Question: Long-term leverage stabilization for TDS Telecom - Management expects to maintain leverage below 1.5 times while evaluating opportunities for growth and capital allocation [55] Question: Access to construction resources for fiber expansion - Management remains confident in achieving the target of 150,000 new fiber service addresses for the year, with ramping construction efforts [56][58] Question: Cohort analysis for fiber market penetration - Management is working on providing cohort analysis to investors, expecting around 25-30% penetration by month 12 and 40% by year five in expansion markets [60][62] Question: Update on mobile launch and pricing strategy - The company launched TDS Mobile in select markets and is testing aggressive pricing strategies, with potential price increases after two years [82][84] Question: M&A opportunities and asset profiles - The company is focused on fiber opportunities that are synergistic with existing properties and is in the early stages of considering M&A options [86]

Financial Data and Key Metrics Changes - The company completed the sale of its U.S. Cellular wireless business and certain spectrum assets to T-Mobile for $4.3 billion, which is expected to unlock significant value for shareholders and strengthen the balance sheets of both Array and TDS [5][11]. - Following the transaction, approximately $364 million remains on the Array balance sheet, with $1.7 billion in debt assumed by T-Mobile [11]. - A special dividend of $23 per share was declared, with TDS expected to receive approximately $1.63 billion [12]. - The company anticipates annual interest savings of about $80 million, reducing TDS's average cost of debt to just over 6% [12][14]. - S&P raised TDS's credit rating to BBB- from BB, reflecting a strong balance sheet and growth outlook [18]. Business Line Data and Key Metrics Changes - Array's tower business operates approximately 4,400 towers and has a new master license agreement with T-Mobile, which is expected to enhance revenue and profitability [8][25]. - Third-party tower revenues increased by 12%, and the number of third-party colocations grew by 6% year-over-year [25][26]. - TDS Telecom added 27,000 new fiber service addresses, with a total of 10,300 fiber net additions leading to a 19% growth in total fiber connections since last year [32][33]. Market Data and Key Metrics Changes - The company is focusing on expanding its fiber footprint, targeting 1.8 million marketable fiber service addresses, with 968,000 addresses at the end of the quarter [34]. - The company expects to achieve 150,000 new fiber addresses this year, with significant growth anticipated in the second half of the year [32][37]. - Demand for higher broadband speeds remains strong, with 83% of residential broadband customers taking 100 meg or higher, and 26% taking one gig or higher [39]. Company Strategy and Development Direction - The company aims to focus on its tower and fiber businesses, believing it is well-positioned to win in these areas [6][8]. - A capital allocation strategy is being developed, focusing on fiber investments, M&A opportunities, and shareholder returns [15][18]. - The company plans to maintain a conservative balance sheet while targeting a three times bank leverage ratio at Array [14]. Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the new chapter for the company following the T-Mobile transaction, emphasizing the focus on tower and fiber businesses [6][10]. - The management team is optimistic about growth opportunities in the tower business due to increasing demand for data and communication services [8][25]. - The company expects to incur additional wind-down costs as it transitions from a wireless service provider to an independent tower company, which may negatively impact profitability in the short term [29]. Other Important Information - The company is working to opportunistically monetize its remaining spectrum, with significant proceeds expected from pending spectrum sales to AT&T and Verizon [21][22]. - The company has a strong sales leadership team in place, which is expected to drive future revenue growth [26][90]. Q&A Session Summary Question: Update on TDS Telecom's fiber expansion plans - Management indicated that there is significant opportunity to expand the fiber footprint and that updates will be shared in upcoming quarters [50][52]. Question: Long-term leverage expectations for TDS Telecom - Management expects to maintain leverage below 1.5 times while evaluating opportunities for both fiber and tower businesses [54]. Question: Access to construction resources for fiber expansion - Management expressed confidence in meeting the 150,000 service address goal for the year, with significant ramp-up in construction efforts expected [56][57]. Question: Insights on fiber market penetration and competitive landscape - Management shared that they expect high presales penetration and are focusing on markets with favorable competitive dynamics [60][73]. Question: Update on mobile launch and pricing strategy - The company launched its MVNO product TDS Mobile in select markets and is testing aggressive pricing strategies [81][84]. Question: M&A opportunities and focus areas - Management is considering fiber opportunities that would synergize with existing properties and footprint [85]. Question: Growth strategy for the tower business - Management highlighted the importance of bringing sales operations in-house and the positive impact on revenue growth [90].

Array Transaction and Debt - Array exchanged $17 billion of debt into T-Mobile debt[8] - TDS is expected to receive $16 billion from Array's special dividend[8] - Array is expected to have $700 million in debt[8] - The gross purchase price for the T-Mobile transaction was $44 billion[9] - A special dividend of $2300 per share, totaling $20 billion, was approved by Array's board[9] Spectrum Monetization - Agreements were reached to monetize approximately 70% of Array's total spectrum holdings, based on MHz-Pops, including the T-Mobile transaction[14] - AT&T's gross purchase price for spectrum is $1018 billion[12] - Verizon's gross purchase price for spectrum is $10 billion[12] Tower Business - Third-party tower revenue distribution shows AT&T contributing 34%, Verizon 27%, T-Mobile 25%, and other sources 14% in Q2 2025[22] - Total tower revenues increased by 7%, from $58 million in Q2 2024 to $62 million in Q2 2025[23] - Adjusted EBITDA for the Towers segment increased by 9%, from $31 million in Q2 2024 to $34 million in Q2 2025[23] TDS Telecom Fiber Expansion - TDS Telecom deployed 27000 new marketable fiber addresses in Q2 2025[24, 25] - The goal is to reach 18 million marketable fiber service addresses[26] - Fiber now serves 53% of service addresses[26]

Financial Data and Key Metrics Changes - In 2024, capital expenditures decreased by 24% on a consolidated level, contributing to an increase in free cash flow [10] - Adjusted EBITDA increased by 7% for the full year on a consolidated basis [11] - Free cash flow for 2024 was $280 million, an increase of $88 million over 2023 [37] Business Line Data and Key Metrics Changes - U.S. Cellular improved subscriber results and executed a strategic review, leading to a solid year in financial and operating results [26] - Postpaid handset gross additions increased by 16% year-over-year, while postpaid handset churn decreased by 14 basis points [34] - TDS Telecom increased residential revenues by 6% due to growth in broadband connections and average revenue per connection [49] Market Data and Key Metrics Changes - U.S. Cellular's fixed wireless surpassed 150,000 customers, indicating growth in that segment [27] - Data usage by customers rose 37% year-over-year, reflecting increased demand for services [28] - TDS Telecom's total operating revenues increased by 1% in the fourth quarter and 3% for the full year [55] Company Strategy and Development Direction - The company aims to optimize its portfolio to focus on growth areas, including the fiber strategy and tower business [9][15] - TDS Telecom plans to deliver 150,000 fiber service addresses in 2025, with a target of 80% of total addresses served by fiber [61][59] - The company is focused on maintaining a culture dedicated to serving customers, associates, communities, and shareholders [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic transactions with T-Mobile and other spectrum deals, expecting to close by mid-2025 [21][38] - The company anticipates continued investments in customer retention and acquisition strategies, particularly in the fiber segment [30] - Management acknowledged challenges in the competitive environment but remains optimistic about the long-term outlook for the tower business [22] Other Important Information - The company has made significant investments in 5G mid-band deployment and fiber programs, increasing its footprint by nearly 30% over the past three years [10] - U.S. Cellular's equity method investment interests produced $169 million in cash distributions in 2024 [24] - The company expects to incur cash income tax obligations related to the gain on sale in the T-Mobile transaction in the range of $225 to $325 million [44] Q&A Session Summary Question: Why was now the right time for the leadership change? - Management indicated that the board felt it was the right time for a change due to the transformative nature of the ongoing transactions [79] Question: Will there be changes in tower reporting? - Management confirmed plans to provide AFFO reporting post-T-Mobile transaction, but structuring the tower business as a REIT is not currently on the agenda [83][85] Question: What is the long-term vision for TDS? - Management emphasized that achieving 2025 priorities will position the company well for long-term growth in both the tower and fiber business [115] Question: How will capital allocation priorities be managed? - Management noted that while specific guidance is premature, the tower business generates attractive cash flows, and there is potential for returning capital to shareholders [123] Question: What are the expectations for fiber service address growth? - Management clarified that the new fiber goals are based on ongoing expansion programs and the EA CAM program, with a focus on pacing spending according to financial capacity [89][92]