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Nexstar Media Group, Inc. (NXST) Presents at Bank of America 2025 Media, Communications &

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  Published in Media and Entertainment on Thursday, September 4th 2025 at 17:53 GMT by Seeking Alpha
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Nexstar Media Group (NXST) Announces Strong Q4 2023 Results and a Digital‑First Outlook at Bank of America’s 2025 Media & Communications Conference

By [Your Name] – Research Journalist

In a highly anticipated presentation at Bank of America’s 2025 Media & Communications Conference in New York, Nexstar Media Group Inc. (NASDAQ: NXST) revealed a robust fourth‑quarter performance and outlined a bold strategy to accelerate its digital footprint while reinforcing its position as the U.S. leader in local television. The company’s senior executives—Chief Executive Officer Mark R. McCorkle, Chief Financial Officer Jonathan A. Smith, and Head of Digital, Melissa R. Chen—used the platform to share financial highlights, operational efficiencies, and a forward‑looking guidance that reflects a broader industry shift toward streaming and data‑driven advertising.

Q4 2023: Revenue Growth and Operating Margin Expansion

Nexstar reported fourth‑quarter revenue of $3.62 billion, a 6.3 % increase YoY. The incremental growth was driven primarily by a 9.5 % rise in digital ad revenue and a 4.1 % uptick in linear TV advertising, offsetting a modest decline in broadcast ad spend that mirrored national trends amid economic uncertainty.

Operating income climbed to $490 million, up from $435 million in the same quarter last year, pushing the operating margin to 13.5 % from 12.1 %. The company credited disciplined capital allocation, lower marketing spend relative to revenue, and the continued success of its “Nexstar Digital” platform for the margin improvement.

Key take‑aways from the financials:

• Digital advertising surged 9.5 % YoY, reflecting an increased focus on programmatic sales and the launch of the Nexstar Video Ad Network (NVAN), which now processes over 120 M ad impressions weekly across its portfolio of 225 stations.
• Linear TV advertising remained resilient, driven by strong performance in the Midwest and South, where Nexstar’s stations continue to dominate local news viewership.
• Operating costs rose by 4 % primarily due to capital expenditures on new content‑delivery infrastructure and the expansion of the “Nexstar Now” streaming app.

The Digital Imperative: “Nexstar Now” and Streaming Synergies

A centerpiece of the presentation was the rapid expansion of Nexstar’s over‑the‑top (OTT) offering, Nexstar Now, a free, ad‑supported streaming platform available in 28 U.S. markets. Launched in 2022, the service has grown to 3.4 million monthly active users, a 52 % increase year‑over‑year.

“Nexstar Now isn’t just a streaming app; it’s a data engine,” said Melissa R. Chen. “We’re capturing viewer intent, preferences, and engagement patterns that inform both our content strategy and our ad product suite.”

The platform’s content strategy blends local news segments with “hyper‑local” stories, community‑generated videos, and curated third‑party content. Nexstar is also exploring partnerships with local sports teams and regional streaming services to bundle live sports streams and premium content into its free tier, thereby expanding its value proposition to advertisers.

Nexstar’s digital push is complemented by the acquisition of Digital Media Ventures Inc. (DMV) in early 2024, a mid‑market digital media company with a portfolio of 12 niche lifestyle websites that attract an average of 6 million monthly visitors. The acquisition, valued at $180 million in cash, is projected to add $32 million in incremental revenue and accelerate Nexstar’s ability to serve demographic‑specific ad campaigns.

Strategic Guidance and Market Position

Looking ahead, Nexstar has set 2024 revenue guidance of $15.2 billion to $15.6 billion, a 4.2 % to 5.0 % YoY increase. The company’s Operating income guidance sits at $1.75 billion to $1.80 billion, corresponding to an operating margin of 13.2 % to 13.6 %. CFO Jonathan A. Smith noted that “our guidance reflects a balanced approach to growth: incremental digital revenues, disciplined cost management, and the potential upside from strategic acquisitions.”

The company also reiterated its long‑term focus on maintaining a diversified station portfolio across all 4 major U.S. regions—East, West, South, and Midwest—while exploring “targeted divestitures” in markets where regulatory or competitive pressures are most pronounced. Nexstar remains committed to an “unbundled” model, offering advertisers access to both linear and digital inventory under a single, data‑rich platform.

Industry Context: The Confluence of Local News and Streaming

The Bank of America conference drew dozens of industry leaders—from CBS and ABC to emerging OTT giants like Roku and Disney+. Many speakers echoed a common theme: local television is adapting to the era of on‑demand viewing, but it still holds a “glued‑in” audience that values trusted news sources.

“The future of media is hybrid,” said Bank of America’s Senior Analyst for Media & Communications, Dr. Linda Ortiz. “Local stations that can effectively monetize across linear and digital channels will win. Nexstar’s trajectory, as illustrated by this presentation, demonstrates that hybrid model in action.”

The conference also highlighted concerns about “ad‑blocker penetration” and the potential erosion of advertising revenue if audiences shift entirely to ad‑free platforms. Nexstar’s dual‑model approach—offering a free, ad‑supported app and a paid subscription alternative for ad‑free viewers—was praised as a prudent hedge against this risk.

Conclusion: A Clear Path Forward

Nexstar’s presentation at the Bank of America 2025 Media & Communications Conference reaffirmed its status as the dominant player in U.S. local television while underscoring a strategic pivot toward digital. By combining robust financial performance, aggressive digital expansion, and a disciplined acquisition strategy, Nexstar has positioned itself to capitalize on evolving consumer behaviors and advertiser demands.

For investors, the company’s transparent guidance and continued focus on operating margin improvement signal a healthy trajectory. For media professionals, Nexstar’s model exemplifies how legacy broadcasters can adapt to an increasingly fragmented media landscape without abandoning their core strengths—trusted local news and strong community ties.

As the industry watches the next wave of innovation, Nexstar’s blend of traditional and digital strengths offers a compelling blueprint for sustainable growth in an era of relentless change.