Nexstar Broadcasting Group's CEO Discusses Q2 2011 Results - Earnings Call Transcript

Moving back to our results, our revenue growth reflects the strength of our core local content and continued success in driving new local revenue, while developing distribution and digital extensions for our core content including new, online, text, mobile, and content, and applications. These factors position Nexstar to offset the cyclical impact of political advertising in the second quarter and political and Olympic revenue for the first half of 2011. Excluding political revenue from both periods, Nexstar's 2011 second quarter gross revenue rose 6.9% year-over-year, and rose 6.1% in the first half of 2011 versus the first half of 2010.

Despite the recent macro uncertainty, positive core television advertising trends are continuing for Nexstar in the third quarter and we remain on track to continue growing all of our non-political revenue sources in the second half of 2011. Nexstar's 2011 second quarter net revenue increase of 1.3% was driven by the increase in core revenue, including our sixth consecutive quarter of auto advertising increases despite the impact of Japan's earthquake, as well as significant e-MEDIA and retransmission fee revenue growth. Total second quarter retransmission fee, mobile, and e-MEDIA and management fee revenue collectively rose 18.8% to $13.2 million. These higher margin revenue streams accounted for over 17.5% of 2011 second quarter net revenue, up from 14.9% a year ago.

Looking deeper into the second quarter, gross local and national television ad growth of 4.3% to $62 million marks a quarterly sequential improvement over the 3.3% rise posted in Q1 of '11, and is also on top of the 13.6% growth recorded in last year's second quarter. Second quarter 2011 local revenue rose by 5.4%. National revenue was up 1.3%.

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