Beasley Broadcast Group posted a net loss of $3.5 million in the first three months of the year, slightly better than its performance in the same quarter a year earlier. But Caroline Beasley was upbeat in the announcement, and she projected that digital platforms will soon account for 20% of overall revenue.
The company, which trades on Nasdaq, reported that net revenue increased 3.7% to $57.8 million. Digital, local spot and network revenue was up, partially offset by a decrease in national spot revenue, which Beasley blamed on “continued softness in the national agency business.”
The company owns 61 AM and FM stations in 14 large- and mid-size U.S. markets. While its annual revenue is much smaller than that of an iHeartMedia or Audacy, the company is in the top 10 U.S. radio companies by revenue, according to estimates from BIA Advisory Services.
CEO Caroline Beasley said in a statement: “Beasley’s strong first quarter financial operating results highlight our continued local audio leadership and the ongoing success of our digital transformation and revenue diversification initiatives which are driving top-line and SOI [station operating income] growth. Despite ongoing challenges related to the economy and softness in the national spot market, Beasley generated healthy growth across its digital, local audio and network revenue sources, as reflected by the 3.7% increase in first quarter net revenues to $57.8 million. Top-line growth was the primary factor contributing to an impressive 21% year-over-year increase in SOI to $7.1 million.”
She said digital revenue grew about 28% year-over-year and accounted for about 17% of total first quarter revenue; she believes that will be 20% by end of the year.
The company has $290 million in outstanding debt.
“While we are hopeful that the operating environment will improve in the second quarter, we are closely monitoring the economy,” Beasley said.
