Nexstar Media Group Inc at Bank of America Media, Communications & Entertainment Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : We've seen the FCC make a number of positive comments and supported deregulation. In fact, we had a member of the FCC here yesterday. What makes you confident that you'll be able to achieve regulatory approval before we get to the specifics of TEGNA, but just regulatory approval and would love to get into some of your vision for what needs to change?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : And so maybe if folks listening aren't fully clear, is the TEGNA acquisition contingent on getting that regulatory approval that cap lifted?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Absolutely. So just turning specifically, there's a lot of different aspects of the media sector that you and your company have looked at or have been involved in through the years, whether it's traditional broadcast networks, cable networks, sports assets, what continues to make the broadcast model attractive to you? Why TEGNA?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Thank you very much. Yes, understood. So your company has been a very successful and famous kind of consolidator of some other big assets, Media General in 2017, Tribune, I think 2019. How do you think about the TEGNA acquisition in the context of some of those success stories for you guys? Is there a playbook that is still valid? Is there -- how has it evolved and what you might do post acquisition?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Great. And now if this vision for deregulation or we had Olivia Trusty yesterday and she kind of borrowed some of the line which you were saying, but getting rid of outdated or regulations that have outlasted their relevancy. If that's achieved, how do you see your industry or even the broader media industry evolving over the next five years? Is it going to look very different? There's just going to be a little more consolidation? Is there any other kind of knock-on affects you can envision?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Excellent. So just kind of switching topics a little bit, turning to sports, and we just heard from one of the biggest names in sports, ESPN and Jimmy Pitaro a few minutes ago. But ESPN is entering with its unbundled streaming product very soon or is already in the market, Fox One. What are the implications, if any, for this kind of unbundling of some of the sports products or DTC sports products in the market for your business or the subscribers or viewership or anything?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Does that work? Is there like a retrans or a fee that you get from -- you said you participated in that Fox One? How does that --

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Okay. And is there any thought or impact to Netflix, Amazon, Big Tech have been bidding on sports rights and getting more involved directly in sports in the last few years, is that change the landscape meaningfully? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:00PM, NXST.OQ - Nexstar Media Group Inc at Bank of America Media, Communications & Entertainment Conference

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Absolutely. So now another important asset of your firm. You're a few years into owning and operating the CW. Can you give us an update on that business and that network? I believe profitability has been improving. When do you expect it will be cash flow positive or contribute to company EBITDA?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : And I would assume that having higher ratings, more engagement, sports, which is sticky loyal content with passionate viewers would strengthen your hand into these affiliate renewal discussions whenever they come up. And if that -- if I'm right about that, and those renewals go well or better than feared, does that pave the way for you to continue investing more in sports? Is it -- or is there anything about it?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Great. And while we're on that, we're talking about revenue, two main buckets of revenue, advertising distribution. Why don't we talk about advertising a little bit. This year has been kind of a weird macro year. We had tariff concerns, which impacted the auto industry and other big industries that I know advertise a lot on TV. How are you seeing your local national advertising platform? What are you observing in the ad market broadly?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Another area of revenue importance for the network -- for the broadcast stations is always political. Any early thoughts on the midterm political cycle, how you guys might benefit or any (inaudible) there?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : All right. Great. And then obviously, one of the concerns or things weighing on this entire industry and not just local stations has been cord cutting. So is there a view that this is abating, stabilizing, plateauing, does it need to? So just any general thoughts on what you guys are observing?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Right. So NewsNation, one, could you, I guess, remind the audience a little bit what this asset is because it's evolved over the years, it's become really significant. It's now a 24/7 operation news channel. What -- how would you describe your current positioning in the cable market? What KPIs are you must focused on as indicators of success in this business? Just thoughts there.

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Well, I'm glad you're spending time talking about it because I think there's a perception of some of what's gone in the broadcast industry as its roll ups, it's consolidation, it's M&A expertise, which you all have demonstrated time and time again. But I think this is a great example of organic innovation with the assets that you have and leveraging these assets and literally standing up a cable network from zero. So I think you deserve a ton of credit for that in addition to the M&A part of the story. So just getting back to, I guess, a little bit of the regulatory environment and where we are in 2025, I would just love you to just opine a little bit about like how can things be better? And you've worked in this industry for a long time. It's been heavily regulated, overregulated relative to -- I cover the rest of big tech, too, which has been probably underregulated and not regulated so you guys have won this regulatory burden forever. What's your vision for if the Trump administration and the teams you're talking to in Washington, kind of side with you and kind of hear this voice. How is it going to serve consumers better, advertisers better, that kind of thing? Because I'm sure that's going to be a question they all. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:00PM, NXST.OQ - Nexstar Media Group Inc at Bank of America Media, Communications & Entertainment Conference

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : No, I think the market is extremely excited. I think we're in lots of sectors, we're awaiting the deregulation trade, and I think your acquisition of TEGNA has proven to be hopefully a positive catalyst, getting things accelerated. Why don't we talk about that ATSC 3.0, what are you seeing as the most promising applications for this. Can you explain it a little bit and touch on the spectrum asset?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : What would be one of the revenue models or if you imagine because I understand the spectrum definitely has value. I think most investors agree, but Spectrum has been this core key of asset. If you ask Charlie Ergen as well over the years and investors trying to value it. But what would be the revenue model? Would be like a GPS provider? Would pay an annual contract?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : One last question I want to get to because we've talked about a lot, but one of the benefits of your company has been strong free cash flow generation, great capital allocation. So what are -- what is your philosophy around capital allocation, buybacks? What is the pro forma leverage going to look like and that kind of --

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : So experts at M&A on the cost of a catalytic transformational deal, deregulation trade, free cash flow powerhouse, organic innovation with this NewsNation network that feel people under-appreciate, hidden value in the spectrum. What's not to like?

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Absolutely.

Question: Brian Fenske - Bank of America Merrill Lynch - Analyst : Thank you very much again for doing this. Really appreciate it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:00PM, NXST.OQ - Nexstar Media Group Inc at Bank of America Media, Communications & Entertainment Conference