The acquisition of 17 Greater Media radio stations in 2016 boosted revenue for Beasley Broadcast Group in the final quarter of the year. Beasley this morning presented financial results that included two months of revenue from those Greater Media stations.
Beasley’s net revenue gain in Q4 was a substantial 89.1% to $53.7 million from $28.4 million in 2015. That jump of $25.3 million year-over-year reflects the operation of former Greater Media stations in Boston, Philadelphia, Detroit and New Jersey since Nov. 1, 2016, the company said, and higher revenue from Beasley’s legacy-owned stations in Tampa-St. Petersburg, Charlotte and Las Vegas.
The broadcaster’s year end numbers released today show a similar boost overall. Revenue totaled $136.7 million in 2016 compared to $106 million the year prior.
Caroline Beasley, CEO of Beasley Broadcast Group, acknowledged the company was late in filing its year-end financial results due to the added requirements from the Greater Media transaction. Integration of the new stations continues and should be completed within 12 to 18 months.
“The fourth quarter was a transitional period by all measures and we look forward to future reporting that will reflect our new platform, our integration and the initiative underway to drive cash flow and ROI,” Beasley said on today’s earnings call.
Beasley Chief Financial Officer Marie Tedesco said despite the mostly upbeat financial news the former Greater Media stations actually failed to perform up to “their potential in the fourth quarter” due to the change in ownership. “On a standalone basis the Greater Media stations revenue in Q4 decreased 6.1% or approximately $2.3 million with $1.4 million of the decline coming from Philadelphia,” she said.
The newly acquired Detroit cluster had a year-over-year revenue increase of over 6.9% Tedesco said, which compared to the overall Detroit market being down 3.2% for the year, according to Miller Kaplan.
Financing last year’s $240 million acquisition of Greater Media lifted Beasley’s outstanding debt load to $267 million as of Dec. 31, 2016, Tedesco says.
Caroline Beasley became CEO effective January 1, according to the company. She had been interim CEO since the announced medical leave of former CEO George Beasley in March 2016. George Beasley continues to serve as the broadcaster’s chairman of the board.