Nexstar Media Group, Inc. (NXST) Q3 2020 Earnings Call Transcript @themotleyfool #stocks $NXST

Great point. Great. Thank you.


We’ll take our next question from John Janedis with Wolfe Research. Please go ahead.

John JanedisWolfe Research — Analyst

Hi. It’s John. I’m just gonna follow-up from Dan Kurnos. Coming on the top of the hour guys. Just with the headlines around COVID continuing. Are you seeing any change in advertisers willingness to commit into or out of the holidays, it doesn’t feel like but just wanted to confirm? And has the improving digital engagement or changes you spoke to accelerated demand for the digital offerings?

Perry A. SookChairman and Chief Executive Officer

Well, obviously, engagement on our digital offerings is up. So yes, we’re focusing on that. And and her team are building out additional offerings and updating our websites to continue to make them even more user-friendly and improve the engagement time spent on site. That’s standard operating procedure, but yes, all of that is going on. We’ve not seen a reluctance. At this point, our pacing is solid for post-election through the end of the year here. And again, you look at the categories that were — that outperformed in Q3 medical healthcare, home repair, home improvement, as we mentioned, lottery and gambling, sports betting and the various service categories. And again, this 20-plus percent increase in pacing of auto for the fourth quarter, and we’re into the second month of the quarter now.

So it’s not a timing issue. It’s absolute dollar quantum being spent. That’s better than — 20 points better than where we exited third quarter and results versus the prior year. So we’re not back to flat, but we anticipate our exit velocity from fourth quarter being the best that it has been all year and the closest to flat that we have been. Now we’ll have a leg down in first quarter, as Tom mentioned earlier because that’s the only unaffected quarter for COVID in our LTM. But after that, I think you’ll see substantial increases over prior year because of the low base of Qs two and three in terms of core revenue performance during the — what we hope is the worst of the pandemic.

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