Broadcast giant Nexstar misses Q2 estimates says it is “Executing” CW plan as network losses shrink

Broadcast TV giant Nexstar Media Group undershot Wall Street analysts’ estimates for the second quarter, but said losses are continuing to narrow at The CW.

The company reported a 2% uptick in revenue in the second quarter to $1.27 billion, which was short of forecasts for $1.3 billion. Diluted earnings per share of $3.54 improved by 90 cents over the year-earlier period but did not hit the Street’s target of $4.17.

“During the quarter, we continued executing on our plan at The CW, reducing operating losses by $33 million year-over-year and $83 million year-to-date,” Nexstar CEO Perry Sook said in the company’s earnings release. “Our organizational and programming changes are driving improved cash flows and the third consecutive quarter of ratings growth in primetime entertainment programming.”

Financials for The CW are not reported as a separate division or line item in Nexstar’s results.

Advertising across the full company portfolio was one of the drags on overall performance. Total ad revenue inched up 2% to $522 million. Political advertising, particularly at the company’s collection of local TV stations, saw a gain of $37 million to reach $45 million. While political was on the upswing, non-political ad revenue fell $24 million from a year ago, a drop the company blamed on “ongoing advertising market softness.”

Nexstar, the No. 1 U.S. owner of local TV stations, closed a deal in October 2022 for control of 75% of The CW. The network’s previous co-owners, Paramount Global and Warner Bros. Discovery, each retained 12.5% stakes. Nexstar estimated at the time that the network would become profitable within three years. It has driven toward that profitability goal by shedding the pricey scripted dramas that were long the network’s signature, replacing them for the most part with unscripted fare and live sports. Deadline