Nexstar Reports Sharp Revenue Drop as Political Advertising Slows

Nexstar Media Group posted its third quarter earnings. The local TV giant saw a steep revenue decline. The results were released Thursday. Political advertising revenue fell sharply compared to last year.

This drop was widely expected. The off-year political cycle naturally yields lower ad sales. The figures highlight the cyclical nature of broadcast television earnings. According to Reuters, the company remains focused on a major pending acquisition.

Advertising Falls While Distribution Holds Steady

Total revenue fell to $1.19 billion. That is a 12.3 percent decline. Advertising revenue took the biggest hit. It dropped 23.5 percent to $476 million.

Last year, political ads contributed $145 million. That revenue stream has now dried up. Distribution revenue was more stable. It dipped only 1.4 percent to $709 million.

Net income fell to $65 million. It was $180 million in the same quarter last year. The company cited lower political ad sales. It also noted higher costs related to its planned acquisition of Tegna.

CEO Outlines Strategy Amid Tegna Merger Scrutiny

Nexstar Chairman and CEO Perry Sook addressed the pending deal. The $6.2 billion merger with Tegna is under regulatory review. Sook expressed confidence it will be approved. He believes the current administration favors deregulation.

He told analysts the deal strengthens Nexstar’s position. It creates the nation’s leading local media company. The combined entity will have high-quality stations and news operations. Sook anticipates significant cost savings.

The CEO projected $300 million in synergies. He also gave an early forecast for the next election cycle. He expects “prodigious” political revenue in 2026. The company will focus on key toss-up races and local ballot issues.

Nexstar’s financial performance remains tightly linked to the political advertising revenue cycle. The company’s long-term strategy now hinges on successfully integrating Tegna and navigating a rapidly changing media landscape.

Thought you’d like to know

Q1: Why did Nexstar’s revenue fall so much?

Revenue fell primarily due to lower political advertising. The third quarter of last year had $145 million from election ads. This cyclical drop is normal for an off-year in politics.

Q2: What is the status of the Tegna acquisition?

The $6.2 billion deal is pending regulatory approval. CEO Perry Sook expressed confidence it will be completed. He cited a favorable regulatory environment for the merger.

Q3: How does Nexstar view future political ad sales?

The company is already forecasting strong revenue for the 2026 election cycle. It plans to leverage its expanded station footprint after the Tegna merger. Local races and ballot initiatives will be key targets.

Q4: What are the expected benefits of merging with Tegna?

Nexstar expects around $300 million in cost savings from synergies. The deal will solidify its position as the largest local TV station owner. It combines award-winning news operations across broader geography.

Q5: Is Nexstar looking at more acquisitions?

Yes. CEO Perry Sook stated the company will continue to look for opportunistic acquisitions. Any future deals must have solid industrial logic and be financially beneficial to the company.