Nexstar recently announced its first-quarter 2025 earnings, shedding light on the challenges faced by broadcaster the CW as it strives towards profitability. During a call with analysts, Nexstar’s president and chief operating officer, Michael Biard, explained that the CW’s profitability in Q1 took a hit due to additional sports programming and amortization that the network did not have in the same quarter the previous year. Despite this setback, Nexstar remains optimistic about the future, projecting improved profitability in 2025 compared to 2024 and aiming to achieve profitability by 2026.
In October 2022, Nexstar acquired a 75% stake in the CW from Paramount Global and Warner Bros. Discovery. Since then, the company has made significant progress in reducing the network’s losses, although it has become less detailed in reporting the CW’s individual results in recent quarters. In February, Nexstar revealed that it had decreased year-over-year losses at the CW by $7 million in the final quarter of 2024 and $126 million for the entire year.
Overall, Nexstar’s distribution sales for the first quarter of 2025 remained relatively flat at $762 million, while ad sales declined by 10% to $460 million. The company surpassed Wall Street’s forecast by reporting diluted EPS of $3.37 on $1.23 billion in revenue, compared to an expected EPS of $3.
Nexstar’s CEO, Perry Sook, expressed satisfaction with the company’s performance in the first quarter, highlighting record distribution revenue and disciplined expense management as key drivers of success. Looking ahead to the rest of 2025, Nexstar aims to renew distribution contracts covering approximately 60% of its subscriber base, continue working towards profitability at the CW, prepare for the 2026 political cycle, and pursue deregulation initiatives.
The CW, known for shows like “All American,” remains a focus for Nexstar as it navigates the challenges of the broadcasting industry and strives to establish itself as a top-tier network. With a strategic approach to leveraging its scale for growth and operational efficiency, Nexstar is poised for further success in the coming months.
