Nexstar, owner of the CW broadcast network, reported that it generated $1.23 billion in net revenue during the fiscal first quarter ended March 31, a 4% drop versus the same period last year despite increased viewership for CW’s NASCAR and WWE programming.
The company reported an adjusted EBITDA of $381 million, down 17% versus the same period last year due to lower political advertising revenue and an increase in the amortization of sports rights for the CW. The decrease was partially offset by Nexstar’s recent restructuring, which led to lower operating costs.
Specifically for the CW, Nexstar highlighted the broadcaster’s increased viewership, as its signature sports properties drove its strongest primetime ratings in eight quarters. CW has an average audience of 1.2 million viewers through 11 NASCAR Xfinity Series races, up 19% versus last year when the series aired on FS1. WWE’s third brand, NXT, has grown by 19% against airings on Comcast’s USA Network in the same time frame.
Shares of Nexstar (NASDAQ: NXST) gained 5.4% to close at $164.31 on Thursday.
The company said it remains focused on renewing affiliate agreements that represent more than 60% of CW’s subscription base, continuing on a path toward profitability by 2026.
Nexstar chairman and CEO Perry Sook said deregulation remains his top priority, citing his hopes that a fifth FCC commissioner will be named this summer to help FCC chairman Brendan Carr in his pursuit of relaxing media ownership rules.
The company owns 75% of the CW, after Paramount and Warner Bros. Discovery sold the majority stake in the network in 2022 (the companies each still hold 12.5% stakes). Nexstar owns and partners with over 200 local TV affiliate stations in the U.S., more than any other media company.
Additionally, Nexstar owns cable news channel NewsNation, multicasters Antenna TV and Rewind TV, political news outlet The Hill, and has a 31.3% stake in Food Network.
The company dramatically reorganized the CW upon its 2022 purchase, moving away from teen dramas and superhero shows to feature more live sports mixed in with some procedurals and unscripted programming.
Prior to Nexstar’s takeover, the CW had 750 programming hours per year, largely devoted to scripted shows such as All-American, Riverdale and the like. The network now boasts nearly 1,100 hours of national programming, with 40% of the new hours (largely on Saturdays and Sundays) devoted to live sports.
Last week, the CW announced it renewed its rights to the remaining Pac-12 football schools for the 2025 season, giving the network access to nine Oregon State and Washington State home games. The Professional Bowlers’ Association (PBA) also signed a multiyear broadcast deal with the CW, beginning in 2026. Financial details of both agreements were not disclosed.
In addition to NXT and the Xfinity races, the CW currently holds rights to ACC football, men’s and women’s basketball games; the HBCU Men’s All-Star Basketball Game; and Grand Slam Track, the new professional track league that launched in April. It will add weekly Saturday broadcasts from the Association of Volleyball Professionals (AVP) beginning Memorial Day weekend, sharing media rights with CBS Sports as both aim to capitalize on the growing interest in the sport.
In an interview ahead of Nexstar’s April 29 upfront presentation, CW president Brad Schwartz and SVP of CW Sports Michael Perman said there’s “a lot of inbound interest” in the network from sports leagues, acknowledging that while the network may not offer the biggest check, it can offer strong local marketing through its affiliate stations and wide broadcast reach.
“I think the word’s getting out from the properties that we have now that we’re very treated very well,” Perman said. “The Pac-12? They wanted to be with us in 2025 because of the way we treated them last year. It’s great to be able to evaluate a lot of properties because they’re interested.”
Nexstar also has an agreement with the Texas Rangers through the team’s Rangers Sports Network to air at least 15 regular season games through 17 owned and partnered local affiliates in Texas, Oklahoma, Louisiana and Arkansas.
“Maybe we can’t compete for NFL rights anytime soon,” Schwartz said, “but we can find things that have dedicated and passionate followings and make them a priority and give them consistent slots and reach that help grow it.”
(This story has been updated in the fourth paragraph with Nexstar’s stock price at market close.)
