You've heard a lot in recent years about developing new revenue streams for television companies. Well, those streams are real – and growing. Nexstar CEO Perry Sook reported that retransmission consent revenues in Q2 were up 31% from a year ago and new media revenues shot up 244%. Combined, they accounted for over five million bucks, or 7.4% of Nexstar's net revenues for the quarter. That's part of why Nexstar was able to post a year-over-year revenue gain, despite the lack of political revenues and a 2.5% decline in auto advertising, although Sook noted that ad buys by local dealers were up.
Having led the charge for retransmission consent payments from MSOs, Nexstar is now set to begin round two. CFO Matt Devine said 47% of the company's retrans revenues are up for renegotiation in 2008 and 33% in 2009. He is predicting "very nice news" for investors, since retrans payments are now an accepted practice.
Nexstar's net revenues were up 6.5% in Q2 to 68.7 million, or 1.8% on a same station basis. Gross local and national ad revenues rose 5.1%. Broadcast cash flow increased 5% to 26.8 million.