Nexstar Reduces Revenue Estimates for Q3

Oct 5, 2004  •  Post A Comment

Nexstar Broadcasting on Tuesday lowered its third-quarter revenue growth projections, blaming lower-than-expected political advertising revenue in the period.

The Irving, Texas-based owner of 27 television stations said it expected its third-quarter revenue to grow by 12 percent to 13 percent over the 2003 quarter’s figure of $52.9 million. The company in August had forecast revenue to grow by 18 percent to 20 percent.

Depressing the revenue-growth projection was a decline in political advertising spending during the quarter. While the company had projected that the percentage growth of political spending would be in the mid-to-high teens, the number is actually coming in between 10 percent and 11 percent, translating into a $3 million to $4 million shortfall. Nexstar now forecasts it will book $6 million in political advertising revenue in the third quarter.

The company blamed reduced spending in Missouri, Illinois and Arkansas-states that the national political campaigns view as being less competitive than before.

However, the company said the shortfall in political spending would be offset by a better-than-expected cost management. The company now expects to reduce station expenses by 5 percent instead of the previous estimates of 3 percent to 5 percent.