On the heels of last week’s announcement it is purchasing Greater Media for $240 million, Beasley Broadcast Group filed second quarter financial results today that showed a year-over-year bump in net revenue. That figure came in at $27.8 million compared to $27 million in Q2 in 2015.
Interim Beasley CEO/CFO Caroline Beasley said on the earnings call today the 2.8% increase in net revenue was mostly due to the success of the company’s Tampa-St. Petersburg, Fla., and Charlotte, N.C., clusters. At the same time there was a 5.3% increase in station operating expenses for the three-month period that ended June 30.
The Greater Media price tag of $240 million included 21 radio stations in seven different markets, including Philadelphia and Detroit. When the sale closes, Beasley holdings will count 73 stations in 16 markets. Beasley said on the earnings call that they expect the sale to close later this year.
“The acquisition of Greater Media represents a transformational growth opportunity for Beasley. Upon closing we will we’ll significantly broaden our local radio and digital platforms by adding stations that are complementary to our operations while presenting the opportunity for synergy with the company’s existing operations,” Beasley said.
The Greater Media purchase increases Beasley’s broadcast portfolio by approximately 40% and more than doubles its audience reach and net revenue, she said.
She reminded everyone that the purchase is subject to regulatory approval. Beasley Broadcast Group is expected to spin off a few stations in Charlotte to fit under the FCC ownership cap in that market.