Political, Nontraditional Revenue Boost Nexstar Revenue
Rises in digital media revenue, retrans consent fees and political advertising boosted net revenue at Nexstar Broadcasting Group 2.9 percent to $70.7 million for the second quarter. Income from operations rose 20.9 percent to $16.2 million for the quarter, compared with $13.4 million in the quarter ending June 30, 2007.
Second quarter 2008 retransmission consent revenue grew 14 percent from year-ago levels to $4.8 million while what it calls “eMedia revenue” rose nearly three-fold to $2.6 million and is on pace to double last year’s.
The company also expects to spend $30 million related to the DTV transition in 2008.
“Nexstar’s record second quarter operating results highlight strong year-over-year increases in political, eMedia and retransmission consent revenues which more than offset the softness in spot revenue and the erosion of network comp,” said Chairman, President and CEO Perry Sook.
Nexstar station Web sites include new features like microsites and opportunities for users to submit their own video, Sook said in a conference call with analysts.
For the third quarter, when increased political spending is expected, Nexstar projected revenue to rise 9.3-11.6 percent, to more than $70.5 million.
Net income for the quarter was $3.9 million (14 cents per diluted share), up from a loss of $1.3 million (5 cents per diluted share) a year ago.