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Nexstar Revenue Up in Q3, Q4 to Be Tougher

Nexstar Broadcasting Group's retransmission fees are helping to close the revenue gap from an off election year.

Nexstar recorded net revenue in the third quarter of $64.5 million versus $63.6 million in the same quarter a year ago. While political advertising revenue in the quarter was just $800,000 versus $6.3 million a year ago, the company collected $3.1 million in retransmission-consent revenue.

Nexstar president and CEO Perry Sook said retransmission revenues will rise in 2008 as the company renews and extends its current agreements. “Our initiatives to develop high-margin revenue streams will deliver double-digit growth in revenue from these sources in both 2007 and 2008," Sook said in a statement.

Nexstar's income from operations was $8.3 million, down from $9.8 million, while its net loss per share was $0.24 versus $0.22 consensus estimates and $0.14 in Q3 2006. Free cash flow was $6.6 million in the period, up from $3.6 million a year ago.

The company expects revenue to drop 8%-10.6% in the fourth quarter from $77.2 million in Q4 2006 on an anticipated drop in political advertising revenue to $2 million from $16.7 million a year earlier.