Beasley Broadcast Q3 Net Revs Rises 1.5% to $63.8 Million

RADIO ONLINE | Monday, November 7, 2022

Beasley Broadcast Group

Beasley Broadcast Group reported third quarter net revenue rose 1.5% to $63.8 million from $62.9 million in 2021. Operating loss fell to $4.7 million from $4.9 million, while SOI increased 5.1% to $12.3 million from $11.7 million, primarily due to higher net revenue, which more than offset higher operating expenses. The company posted a net income of $0.5 million (2 cents per diluted share) as compared to a net loss of $1.6 million (-6 cents) in the year-ago period.

CEO Caroline Beasley said, "Beasley delivered another strong period of operating and financial performance, reflecting the ongoing success of our digital transformation and revenue diversification strategies. Top-line growth was the primary factor contributing to a 5.1% year-over-year increase in SOI to $12.3 million and was driven by continued strength in local audio advertising and impressive growth in our digital business.

"Regarding the economic environment, like many companies, we are managing through some challenging market conditions with a focus on what we can control. We continue to experience increased volatility in national spot advertising, which accounted for approximately 15% of our third quarter net revenues. The ongoing strength of our digital and local audio advertising revenues is helping us to partially offset these declines. We are also taking actions on the expense side, and have implemented approximately $10.0 million in expense reductions, of which roughly half were from a reduction to headcount.

"Digital remains a key component of our revenue diversification strategy. Digital revenue increased 23.1% year-over-year representing 16.0% of total third quarter revenues, while our digital margin improved. Our digital performance benefitted from a first full quarter contribution from the white label digital agency we acquired in late June, which we believe will continue to accelerate our digital revenue growth and provide meaningful synergies with our growing digital platform. In both the second and third quarters, digital revenue accounted for a larger share of our revenue than national advertising, and we expect this revenue source to continue offsetting national spot weakness in the coming quarters."