Higher automotive and political advertising -- as well as the benefit of the acquisition of 10 new stations -- drove Nexstar Broadcasting to post
sharply high financial results.
The Irving, Texas-based TV group witnessed fourth-quarter revenue soaring nearly 35% to $116.2 million, with income from operations almost double to $35.4 million -- up from $17.6 million.
Nexstar said its core local and national ad fourth-quarter revenue growth of 8.8% -- rising to $73.2 million during the period -- was boosted by a 12% rise in automotive advertising.
Local core advertising revenue grew 7% to $52.6 million, with national spot advertising revenue up 14% to $20.6 million. Political advertising was $27.3 million, up from $2 million in the fourth quarter of 2011. Digital advertising revenue was up 25% to $5.3 million during the period -- and 13% higher to $18.4 million. Nexstar also had a 60% rise in retransmission fees, to $16 million.
While political advertising is a boon to many TV station groups, some of their main core advertisers can be displaced by political commercials.
Perry Sook, chairman, president and chief executive officer of Nexstar, stated: “During the fourth quarter, we successfully managed inventory to maximize our share of election spending in our markets without materially impacting our core television business."