Nexstar Reduces CW Quarterly Losses By $33 Million Year-Over-Year

Year-to-date operated losses were reduced by $83 million, the company revealed during its second quarter earnings report

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The CW is on track with its plan to trim its losses by $100 million by the end of the year. During Nexstar’s second quarter earnings report, the company reported that CW’s operating loss improved by $33 million in the second quarter year-over-year, progress that Nexstar chairman Perry A. Sook dubbed “excellent.”

Additionally, operating losses for the broadcast network were reduced by $83 million when measured by over year to date. This was largely driven by reductions in programming costs. The network’s programming expenses decreased by $49 million compared to the second quarter of 2023.

“For the full year, we remain on plan and continue to expect the CW’s operating loss to improve by over $100 million,” Sook said on Thursday morning during the company’s second quarter earnings call. “Our programming strategies are being validated as the CW delivered its third consecutive quarter of primetime entertainment ratings growth since implementing our new programming lineup.”

Sook highlighted that “Police 24/7,” which premiered on the network in May, as the No. 2 series on the CW across all demos. He also highlighted the final season of “Superman & Lois,” “Sullivan’s Crossing” and “Inside the NFL,” which will now feature Bill Belichick as a commentator, as upcoming highlights for the fall season in addition to the network’s new push into game shows with “Trivial Pursuit” and “Scrabble.”

Nexstar president and Chief Operating Officer Michael Biard also opened up on how Nexstar and the CW are looking at their sports strategy. Before Nexstar took ownership of the network in 2022, the CW had never offered live sports. In the coming year, the network will be home to 500 hours of sports programming, including LIV Golf, ACC football and basketball, Pac 12 football, NASCAR Xfinity racing and the WWE NXT. Biard called the investment “a good start.”

“We’re happy with where we are, but more is always better, right? So we will continue to be in the marketplace, and we’ll continue to look at opportunities, particularly for rights holders who are attracted to the increased reach that broadcast can offer them,” Biard said.

Previously on the call, Sook pointed to the NBA deal as proof of broadcast television’s power. The basketball league bypassed a contract renewal with Warner Bros. Discovery, which has cable and streaming assets, in favor of a partnership with Comcast, which has broadcast, cable and streaming assets. The NBA also partnered with Disney and Amazon for its 11-year deal. During his explanation for the league’s decision, NBA commissioner Adam Silver said there was “no platform that can match the reach of broadcast television,” words that Sook quoted on Thursday.

“When you look at the products that we’ve attracted, the rights that we’ve attracted, there’s a consistent theme of rights holders seeking broader reach and a bigger platform that broadcast can offer them that we expect we’ll see more in the future,” Biard said.

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