Beasley Broadcast Q2 Revs Down 4.8% to $60.4 Million

RADIO ONLINE | Monday, August 12, 2024

Beasley Media Group

Beasley Broadcast Group reported second quarter revenue of $60.4 million, reflecting a 4.8% decline compared to the same period in 2023. This decrease in revenue was primarily due to the divestitures of Beasley's Wilmington station and esports operations, as well as ongoing softness in the commercial advertising market. Despite these challenges, the decline was partially offset by growth in digital and political advertising revenue.

Operating income for the quarter reached $5.4 million, a significant improvement from the operating loss of $4.5 million reported in the second quarter of 2023. This turnaround was driven by a reduction in operating and corporate expenses, coupled with the absence of non-cash impairment charges that had negatively impacted the previous year's results. These factors contributed to a much-improved bottom line, with the company reporting a net loss of just $0.3 million ($0.01 per diluted share) as compared to a net loss of $10.4 million ($0.35 per diluted share) in the year-ago period.

Beasley's Adjusted EBITDA for the second quarter of 2024 was $8.8 million, representing an 11.4% increase from the $7.9 million reported in the second quarter of 2023. This growth in Adjusted EBITDA is primarily attributable to lower operating and corporate expenses, even after accounting for severance expenses that are excluded from Adjusted EBITDA, although it was somewhat offset by the decline in net revenue.

Digital revenue continued to be a bright spot for Beasley, growing by 5.7% year-over-year, or 10.4% on a same-station basis, to reach $13 million. Digital revenue now comprises 21.5% of the company's total net revenue, with 37% of Beasley's total audience engaging with content via digital platforms. This growth underscores Beasley's ongoing digital transformation strategy, which remains a focus for the company.

Beasley Broadcast Group CEO Caroline Beasley stated that the second-quarter results demonstrate the strides Beasley is making toward sustainable, profitable growth. She emphasized that the success of the digital transformation strategy is particularly evident in the strong year-over-year increase in same-station digital revenue, which is playing a crucial role in offsetting the challenges faced in the traditional audio advertising market.

In addition to digital growth, the company also experienced a 16.5% year-over-year increase in revenue from new customers and generated $586,000 in political revenue during the quarter. Local revenue, including digital packages sold locally, accounted for 72.8% of net revenue, highlighting Beasley's local market presence.

Beasley concluded by expressing confidence in the company's future, stating that Beasley is well-positioned to continue benefiting from political revenue through the end of the year. She affirmed that the actions being taken to transform the company and strengthen its balance sheet are laying a solid foundation for future growth and success.