Nexstar Posts Narrower Q1 Loss

May 3, 2006  •  Post A Comment

Nexstar Broadcasting Group posted a narrowed first-quarter loss of $7.3 million, buoyed by an increase in political advertising revenue and higher payments from cable companies carrying Nexstar’s broadcast signals.

Both factors helped drive up revenue 12 percent in the quarter to $59.8 million, up from $53.3 million a year ago.

Nexstar’s financial results come in the wake of a nearly year-long quest by the company to seek cash payments from cable operators in its markets, much in the way cable networks get paid by the cable companies for carrying their programming. In a show of the company’s resolve, Nexstar pulled its broadcast signal from several systems for nearly a year until the cable companies agreed to pay Nexstar to carry its broadcast signals.

Those payments, called retransmission consent payments, totaled $3 million in the first quarter, up from $500,000 a year ago.

Political advertising revenue surged to $1.8 million, compared with $300,000 in the 2005 quarter.