The upper inflation charges irritating U.S. customers are excellent news for the tv information enterprise, Irving-based Nexstar Media Group chairman and chief govt Perry Sook informed analysts Tuesday.
“Traditionally, inflation has been a pal of our enterprise as a result of it offers us some means for — cowl for —pricing energy and pricing will increase. So I don’t consider inflation as a foul factor,” Sook stated on the tv station proprietor’s earnings name Tuesday.
His feedback after Nexstar delivered file annual 2021 revenue in contrast with any earlier non-election 12 months, beating Wall Avenue’s expectations. In election years, the corporate traditionally sees an inflow of advert spending from political campaigns. Nexstar noticed $4.6 billion in income, up 3.3% from the earlier 12 months. And it introduced in $1.9 billion in pre-tax revenue.
Sook informed analysts that promoting in some sectors has but to return to pre-pandemic ranges. The CEO famous that a kind of areas is the automotive trade.
Promoting income for the corporate was down 13% in 2021 in contrast with the prior 12 months, however Nexstar says anticipates political spending within the 2022 midterm election cycle will enhance advert income. Enterprise spending on promoting fell in 2020 however noticed a robust rebound in 2021. 2020 additionally set income information for the corporate, offering a troublesome year-over-year comparability.
The corporate brings in income by means of each promoting adverts and promoting rights to TV suppliers to hold its content material. It stated half of its retransmission agreements with TV suppliers can be up for renegotiation within the second half of 2022, and it expects to see will increase in income because of this.
Nexstar is likely one of the largest tv station house owners within the U.S., with 199 stations in 116 markets throughout the nation. It’s the biggest proprietor of CBS and FOX affiliate stations, the second-largest proprietor of NBC associates and the third-largest for ABC, based on the corporate. In Texas, Nexstar owns native CW station KDAF-TV (Channel 33) and native information stations in Tyler, Abilene and different rural markets.
Nexstar was the seventh-largest on-line digital information supplier in 2021. Citing Comscore, Nexstar stated its on-line media properties have been seeing 120 million month-to-month distinctive guests as of December. It has been bolstering its digital media operations, together with finishing its acquisition of political news outlet The Hill for $130 million, which was introduced in August.
In 2020, Nexstar launched its nightly prime-time information present on WGN America known as NewsNation. The present dropped from 223,000 viewers in 2020 to only 46,000 viewers in prime time in 2021, according to Nielsen figures.
“Whereas our viewers for NewsNation continues to be modest, we’re the fastest-growing cable information community, and advertisers are validating our technique and NewsNation’s unbiased content material,” Sook stated.
Sook stated in an announcement that Nexstar’s sturdy working momentum in 2021 will place it for extra funding in progress initiatives and merger and acquisition alternatives this 12 months. CFO Lee Ann Gliha stated the corporate will take a look at different TV stations it may doubtlessly purchase underneath present laws and can be eyeing content-generating companies that may be utilized throughout its TV entities — just like Nexstar’s acquisition of The Hill or BestReviews.