Beasley Broadcast Group Q2 Net Revenues Down 53.7%

RADIO ONLINE | Tuesday, August 4, 2020

Beasley Media Group

Beasley Broadcast Group reported second quarter net revenues fell 53.7% to $30.4 million from $65.7 million in 2019, reflecting a decrease in commercial advertising, digital advertising and other revenue due to the impact of the COVID-19 pandemic. It was partially offset by growth in esports revenue and contributions from the August, 2019 acquisition of WDMK-FM/Detroit. Operating income swung to a loss of $17.6 million, down 39.2% from an income of $10.7 million. The company posted a net loss of $18.2 million (63 cents) per diluted share, as compared to a net income of $4.3 million (15 cents) in the year-ago period.

CEO Caroline Beasley stated, "While Beasley had a strong start to the year, a sharp decline in commercial advertising occurred in the second quarter with the onset of the COVID-19 pandemic. Beasley's financial results for the three-month period ended June 30, 2020 reflect the economic pressures we experienced across our business as local and national advertisers adapted their media plans to meet the unique challenges of the pandemic. While we saw sequential month-over-month improvement in our commercial advertising revenue performance from April to May, and from May to June, our total net revenues for the second quarter decreased nearly 54%, which is in line with reported overall industry levels.

"To address the reduction in traditional advertising revenue that has occurred as a result of the pandemic, during the second quarter, we quickly implemented several changes across the Company, including reducing operating expenses and corporate overhead and realigning our Company-wide cost structure to preserve cash. As a result, Beasley's second quarter total operating expenses declined by 12.7%, and year-to-date, we have taken approximately $26 million out of our cost structure. In addition to these actions, as part of our response, we have taken proactive steps to accelerate our digital transformation initiatives and revenue diversification strategies, and to become a leaner and more efficient organization, with the goal of growing our market leadership position across our stations, our digital operations, and our esports interests."