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Perry Sook has a really good story to tell. Sooks salary and bonus averages out to $7.5 million a year for 2017 and 2018. Nexstar generated fourth quarter political revenue of $265.9 million propelling our full year of political advertising to $505.6 million, just 1% shy of the 2020 presidential election year results and up an impressive 32% pro forma over 2018, the last midterm comp. Thats job one.. Perry A. Sook has over 43 years of professional experience in the television and radio broadcasting industries, covering all facets of the business, including ownership and M&A, management, sales, on-air talent, and news. They had no audience, no advertisers, and no followers, Sook says. And so that means we have to go dark for a little while to make the point. Well, I think our -- I guess I stated earlier, our goal is to create more value in the CW. That's job one." El Paso is ORourkes hometown. In the fourth quarter, yes. We want to necessarily put our playbook out there, but I think you'll see as we move toward the upfront level and the programming schedule that gets -- that will be displayed and deployed for the fall. a serious, hands-on leader who earned executive-level platinum points last year in just five months while still managing to maintain a golf handicap of 15. They're fielding tons of pitches. My last quick question, core advertising for the first quarter. Both Blackburn and Arpaio have received lavish praise from President Trump. Good day, and welcome to Nexstar Media Group Fourth Quarter and Full Year 2022 Conference Call. The company reported net income of $226.5 million, a rise of 13.4%, in the period ended June 30. To that end, we have recently appointed experienced sales and advertising executive, Michael Strober to the newly created position of EVP and Chief Revenue Officer responsible for leading the execution of a new advertising sales and go-to-market strategy for the company, which is designed to accelerate the monetization of our platform with a focus on the national advertising opportunity which is roughly double the size of the local advertising market that Nexstar has predominantly served historically. CapEx was higher in the fourth quarter than prior quarters in 2022 as CapEx that was delayed in the first 3 quarters of the year due to supply chain disruptions was finally fulfilled in the fourth quarter. Copyright 2023, D Magazine Partners, Inc. We use cookies to ensure that we give you the best experience on our website. Perry Sook, Nexstar's CEO, gave $5,000 to the company's PAC in the 2014, 2016 and 2018 election cycles. In addition, fourth quarter advertising was impacted as sports betting and gaming companies redirected total television advertising dollars to voter propositions to legalize online gambling in California. And at that point, obviously, we're getting higher cost per thousands in news programming than we did in off-network programming. Looking ahead, we project corporate overhead exclusive of stock comp and transaction cost to be approximately $36 million in the first quarter, and we expect overhead around $144 million for the year. And we'll continue to look for additional sports opportunities that may or may not be on weekend afternoons, may bleed into prime time upon occasion. He founded Nexstar in 1996 with one local television station in Scranton, PA and began building the foundation of what is. (Read the Station Group of the Year profile here.And had he had any less business acumen, industriousness and taste for greater rewards that makes for a good entrepreneur, he might be one today. We're looking forward to a solid 2024 election cycle. So, Sook began by figuring out how to benefit financially by operating or managing stations. And then a big picture question. In the segment, news anchors read from a script decrying biased and false news on social media and other news outlets. How much -- are you expecting that to be down by roughly mid-single digits? In line with our historical approach, we will not be accepting any deals that discount the value of our content, our stations deliver to these platforms. Revenue rose to $1.25 billion, up 10%, from [] The grade was part of a segment called Truth Test in which political ads are rated on their factual accuracy. They also gave $5,700 to Rep. Greg Gianforte, who became well known nationally after physically assaulting a reporter. In 2014, they contributed $263,587 and in 2016 they contributed $429,504 before dipping back down to $186,648 in 2018. So were launching this year, a three-hour, live, primetime newscast, seven nights a week, on WGN America. Were going to represent those who are underrepresented.. And so yes, our profitability has been enhanced, and we're investing our syndicated programming expense back into journalism. This concludes our conference call for today. And one of your peers has also recently launched a service that's going to pick up regional or local sports rights. The ramp-up of sports betting advertising came at a time when automotive was declining and now we see a reversal in the performance of these 2 categories. Q4 digital revenues increased 10.1% year-over-year to approximately $112 million. Listen Bloomberg. Thank you for signing up to Broadcasting & Cable. Also down the road may be a streaming version of NewsNation. Are your MVPDs kind of happy to pay you a higher affiliate fee for the CW now that you're pairing it with broadcast stations or any other kind of context you could put around that statement and whether or not that's been an incremental surprise or that was always part of the thinking when you bought the CW? Another WATE story featured anti-Blackburn protestors demonstrating during a moment of silence for the Pittsburgh Synagogue shooting victims at a campaign event. Learn about Article Alert. Political spending at Tribune peaked around 2000 when they gave $123,280, the majority of that to Republicans. It seems like you're pretty much through with the reshaping process there. However, political ideologies have influenced human society since the dawn of civilization as. Looking ahead, excluding the impact of the CW affiliate fees, given our recent contract resets, we expect distribution revenues to be up high single to low double digits for 2023, depending on the outcome of our partners' ongoing negotiations with multiple -- with a couple of MVPDs on which they are currently dark and inclusive of our projections for subscriber attrition. I didnt have his journalistic chops or the talent, so I decided to go to the business side. In addition, the CW was responsible for $30 million of onetime expenses comprised of restructuring charges and retention bonuses. He grew up in Oshkosh, Wisconsin. As always, with me on the call this morning are Tom Carter, our President and Chief Operating Officer; and Lee Ann Gliha, our CFO. Although less overtly political than their cousins on cable, local news stations have come under increased scrutiny after the viral controversy aroused in early 2018 by a must-run segment on stations owned by Sinclair Media. After nearly a year-long clash, the cable company agreed to pay for carrying the signals. Revenue is generated through advertising. We have 1,800 salespeople that call on small and midsize businesses in 63 percent of the country, he says. Today's call is being recorded. Jamie McCarthy, Getty Images Tyler Perry, who's stayed largely apolitical throughout his career, is breaking the tradition to endorse a candidate in the 2020 presidential election. And I think individually and collectively, we will recognize that value and are not willing to sell at a discount or to sell on an a la carte basis. And then if you get some of the current blackout renewals done, then accelerates into that new guidance. I know that was also, I think, mid-teens at that point. Hes. ABC 5, a Hubbard-owned station, reported on 2009 Facebook comments made by Housley in which she likened Michelle Obama to a chimpanzee. Last quarter, you announced the Clippers deal. Market Realist is a registered trademark. In most cases,it is difficult to say whether these companies political activities cross-pollinate with their journalism and business dealings, but future controversies akin to the Sinclair must-run scandal could continue to increase the visibility of the companies behind these local stations and erode Americans faith in yet another source of news. And, prior to that, in January of 2017, we closed on the acquisition of Media General, a $4.6 billion transaction. As one of the nation's leading providers of local news, entertainment, sports, lifestyle, and network programming, Nexstar produces and distributes over 275,000 hours of local content per year. Politico pioneered the fast-paced coverage of Capitol Hill and campaigns that now thrives on Twitter and cable news. Offsetting these factors were the impact of ours and our partner stations going dark on certain MVPDs during the quarter in connection with the contract renegotiations and the settlement of certain disputes impacting revenue in connection with these new contracts as well as continued MVPD subscriber attrition. Fox Board's Failure; McCarthy Pressed on Tucker Handout; Lord of the Studios NewsNation InSites. What's your feeling about that? Do we know enough yet to know if it's a buyer's market? Nationwide and locally, Nexstar is involved in over 1,600 community initiatives each year donating thousands of hours and helping to raise millions of dollars for worthy causes. Your comments about (inaudible) drawing attention to the CW. Whether youre reading about 2022 midterm fundraising, conflicts of interest or dark money influence, we produce this content with a small, but dedicated team. Excluding these impacts, our 2023, 2024 free cash flow would have been $1.45 billion for comparison purposes. So I don't know how do we yardstick kind of '24 relative to whatever pro forma 2020 was if you have that number. In the fourth quarter, the CW generated $66 million of revenue and $64 million of adjusted EBITDA losses in line with our expectations for the quarter. Sook recalls running commercials with us holding up a penny and asking, Dont you think were worth a penny a day on your cable bill?, The Nexstar CEO felt he was on the right side of things and that cable customers would be willing to pay to get their local news content. Fourth quarter total interest expense increased to $103.4 million from $70.2 million in the prior quarter due to the impact of increasing LIBOR and SOFR rates applicable to our floating rate debt. CEE MARKETS-FX strengthens as market sees rates staying high, China says EU TikTok ban will harm business confidence, Consumers keep feeling better about today and worse about tomorrow: Morning Brief, All Adani Stocks End Higher First Time Since Hindenburg Report, Chinese video streaming platform iQIYI to raise $600 million through convertible bonds. Even if the rip n read world fit him, the environment at the station did not. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. Mr. Sook was a principal of Superior Communications Group. With FCC approval, the company will own 171 stations to. This continues to be in line with the historical trends with local advertisers maintain more consistent levels of ad spending throughout economic cycles. The only time we had video of what was going on in town was if there was a car wreck or a house fire, Sook says. We returned $1.02 billion or 68% of our attributable free cash flow to shareholders in 2022, paying $142 million in dividends and repurchasing $880 million of stock or 5.1 million shares, 12% of our shares outstanding as of December 31, 2021. Turning to the balance sheet. Cash interest expense was $100 million for the quarter and $323.6 million for the year, slightly lower than our $326 million expectation at the last call due to the impact of the -- of actual versus projected yield curve and debt repayment. And important for us, the linear broadcast ratings increased 21% from Saturday to Sunday, so all of which is to say those numbers exceeded our expectations. Beginning with the LIV Golf season, which kicked off last Friday, the CW will air 14 global events and stream the events live on our CW app. And as in the past, we will provide the results of that process in our annual proxy statement. Sinclairs name recognition spiked after a Deadspin compilation synchronizing the biased news must-run segment went viral, but Sinclair has been distributing corporate speech through local news stations for years. by: Perry Sook Posted: Feb 4, 2023 / 10:58 PM EST Updated: Feb 4, 2023 / 10:58 PM EST MANHATTAN, N.Y. (PIX11) The Columbia women's basketball team has the best record in program history at this point in the season, but this weekend, they hosted a duo of second-place Ivy League teams in Penn and Princeton. So we'll be a 24-hour news network Monday through Friday by the end of April, and that will include the daytime expansion, the addition of the Hill, the addition of Elizabeth Vargas Reports show at 6:00 Eastern Monday through Friday. Pelosi even gave the station an exclusive interview. With respect to our free cash flow guidance, we've opted to use an attributable free cash flow figure that includes the cash flow of Nexstar and its interest in the Food Network and our attributable 75% interest in the losses of the CW and the related tax benefits of those losses. Overall, for the year, cash operating taxes were $334.1 million for Nexstar, excluding CW, implying a 25.5% pretax income rate and $321.9 million, including the tax benefit from the CW attributable tax deductible losses. The host would criticize other media outlets for their coverage of then-President Bush, once going so far as to say that terrorist leaders would dearly love to see President Bush replaced with Senator (John) Kerry.. Our next question comes from Dan Kurnos with The Benchmark Company. On the other hand, ABC 5 gave a D- to an ad run by Paulsen that attempted to tie his opponent to a sexual assault. Early in his career, Mr. Sook was involved in local TV sales and radio sales. When you refer to Bay, who are you talking about? Sook has just returned from eight days on the road, on business in California and Arizona. All Rights Reserved. Six people at the time reportedly said that NewsNation was becoming increasingly right-wing and conservative in its presentation. As such, we are opting to exclude transaction and onetime expenses from these figures. In 2023, we plan to allocate a portion of our free cash flow to reduce indebtedness, primarily from mandatory amortization payments. RUDY, I. Robert BBA '74 Vice Chair Oakland, MD. But we could develop sharing arrangements so we could get an economic benefit from a second station, Sook says, even if we werent allowed to own the license.. Nexstar plunked down $130 million bucks to buy the political website The Hill. I'll first read the safe harbor language, and then we'll get right into the call. All statements and comments made by management during today's conference call, other than statements of historical fact may be deemed forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Except for the Revolving Door section, content on this site is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 United States License by OpenSecrets.org. Perry Sook is a performer that lives by these words. Okay. Yourcentralvalley.com, a Nexstar site affiliated with NBC covering Fresno, California, ran a story about Kevin McCarthys claims that California Democrats had fallen out of touch with voters. Hubbard Broadcasting gave $350,000 to Freedom Partners Action Fund, a Koch-network Super PAC, in the 2016 election cycle. Is it still a little too early? Note: Due to errors with CRP data obtained from the FEC that triple-countedcontributions, it was originally reported that Sen. Chris Van Hollen received$28,000 from Sinclair affiliates and its PAC. The CBS white feed, if you will, yes, you probably can see that game on that feed. Well, I think it was all part of the thinking. But I don't expect that anyone would sign on to a big contract until they had the chance to administer their tests. Suite 2100 Starting with core advertising with our portfolio of strong national and unparalleled local broadcast, we believe that Nexstar has the ability to improve our core advertising by uniting our go-to-market strategies under the 1 united Nexstar platform using data-driven strategies to achieve our clients' objectives. Dennis Miller and Brad Schwartz and their teams are hard at work putting that together. I mean can you generate revenues that are meaningful without that? It will be based in Chicago and run out of Chicago, drawing on the backbone of those 5,400 journalists sprinkled around the country.. Our programming continues to be recognized by watchdog group for its independence, and we believe this is the type of content that journalists want to report and audiences want to watch. And I now would like to turn the conference over to Joe Jaffoni, Investor Relations. In summary, we remain confident in our strategy, the quality of our assets and the strength of our financial position. Sook said this year when Hillary Clinton and Donald Trump square off in the November presidential election, Nexstar will earn about $100 million in political advertising revenue. So maybe as expected, Tom, hoping we could just unpack some of the things you went through on retrans a little bit. I know that our affiliates in CW affiliates in the top 10 markets generated about 3x the amount of money that the network generated for this first outing. I knew the quickest road to management, and management to ownership, was through sales.. 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Agreed to pay for carrying the signals probably can see that game on that feed industry for,. 63 percent of the thinking out how to benefit financially by operating managing... Becoming increasingly right-wing and conservative in its presentation how much -- are you talking about Capitol Hill and campaigns now...
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