Nexstar Media Group Inc Q4 2024 Earnings Call Transcript

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

Question: Stephen Cahall - Wells Fargo Securities LLC - Analyst : Yeah, thank you. So just on M&A, Perry, you have a great acquisition history between Media General and Tribune. I don't recall the free cash flow accretion off the top of my head of those deals, but I know it was significant. Nowadays, your rates are higher, but a lot of the peers are also higher. So do you still think there's a lot of similar levels of accretion for broadcast M&A opportunities as there have been historically, if we do see some deregulation? And related to that, Do you look harder, potentially, at how spectrum assets fit together when you think about broadcast and consolidation over the next decade? And then Leanne, just on the EBITDA outlook for the year, impressive work that you're doing on cost. I'm just wondering, is there any cost to achieve that is included in EBITDA or that impacts free cash flow? Or is all of that behind you and was largely done in 2024? with the benefits, that eight-figure number that you talked about rolling through in the guidance for 2025. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 3:00PM, NXST.OQ - Q4 2024 Nexstar Media Group Inc Earnings Call

Question: Stephen Cahall - Wells Fargo Securities LLC - Analyst : Great. Thank you.

Question: Dan Kurnos - The Benchmark Company, LLC - Analyst : Yeah, thanks. Good morning. Very comprehensive, guys. Maybe first one, just on the sports front, what do you guys make of Major League Baseball and ESPN parting ways? Do you expect there's any opportunity for local broadcasts to finally get access to the laggard child, so to speak? And then just to be clear, I guess, Leanne, on the distribution, or Mike, I guess, are you assuming that the recent subtrend holds for the year? And can we just get a sense of the timing of the renewals? We got the CW in Q4, but the other 60%. Is that all back-end weighted? Thanks.

Question: Dan Kurnos - The Benchmark Company, LLC - Analyst : Perfect. Thank you both.

Question: Benjamin Soff - Deutsche Bank Securities, Inc. - Analyst : Good morning. Thanks for the question. I'm wondering if you can talk about the progress you're seeing with respect to deregulation and what's your level of optimism that we could see changes this year? And then maybe could you talk a little bit more about the EdgeBeamJV, how that helps you accomplish your goals and the progress you've made on ATSC to date? Thanks.

Question: Benjamin Soff - Deutsche Bank Securities, Inc. - Analyst : Great. Appreciate the insight. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 3:00PM, NXST.OQ - Q4 2024 Nexstar Media Group Inc Earnings Call

Question: Craig Huber - Huber Research Partners LLC - Analyst : Great, thank you. I have a few questions. I'll just do them one at a time to make it easier. On ATSC 3.0, Perry, just talk a little bit further about your expectations, how the revenue ramp for your company and the rest of your consortium may play out. How many more years do you think it'll be? It could be significant for you guys.

Question: Craig Huber - Huber Research Partners LLC - Analyst : And then more near-term question. You guys just talked a little bit further about core advertising trends near-term. Are there any maybe national advertising categories that you guys have seen any green shoots and any significant change there against positive or negative?

Question: Craig Huber - Huber Research Partners LLC - Analyst : Maybe you could just talk a little bit further about what you're expecting for overall core advertising trends in the first quarter year-over-year.

Question: Craig Huber - Huber Research Partners LLC - Analyst : So what is it that you're seeing? That's obviously a much better number than you guys were able to do all four quarters last year. Obviously, part of it was hurt by crowding out, but what are you seeing better in particular that you want to highlight?

Question: Craig Huber - Huber Research Partners LLC - Analyst : And sorry, if I could just ask one more. On the CW losses, you guys talked about it being down 25% or perhaps more in the new year. That would probably put it down to a loss of roughly $100 million, maybe a little bit better than that. How are you feeling about the point in time when you might be able to get to break even? Do you still think by late this year, early next year? How are you feeling about that, please?

Question: Craig Huber - Huber Research Partners LLC - Analyst : Okay, great. Thanks, both of you.

Question: Aaron Watts - Deutsche Bank Securities, Inc. - Analyst : Hi, thanks for having me on. You've covered a lot of ground, so I'll just have one question. I've asked you in the past about moving towards investment-grade status on your whole cap stack, because certainly your stewardship of the balance sheet has opened the door for that discussion. But in light of the speculation around deregulation in the space and your commentary there today, maybe I can ask about the balance sheet in a different way. How high would you be willing to take your leverage in the current environment to participate in industry consolidation?

Question: Aaron Watts - Deutsche Bank Securities, Inc. - Analyst : Okay, got it. Thanks, Leigh Ann.

Question: Patrick Scholl - Barrington Research Associates, Inc. - Analyst : Hi, thank you. With the CW, and you mentioned you have a lot of renewals coming up later this year, with all of the sports rights that you have added to that network, could you maybe talk about any benefits you're seeing on the distribution side and the contribution that those rights are creating for either your affiliate partners or for your distribution revenue so far?

Question: Patrick Scholl - Barrington Research Associates, Inc. - Analyst : Okay. Thank you. Thank you.