With revenue of $64.8 million for the months of April, May and June, Beasley Media Group increased revenue over the same three months in 2021 by just under 9%. Here’s how much money the company lost in the quarter.
Overall, the company reported a loss of $4.5 million in the quarter, compared to operating income of $5.8 million in the same three months of 2021. The loss was blamed on an $8.6 million non-cash impairment loss “due to an increase in the discount rate used in the analyses to estimate the fair value of FCC licenses and goodwill in a rising interest rate environment.”
For the comparable three months of 2021, Beasley recorded $1.5 million of other operating income, net from life insurance proceeds related to the death of company chairman. As a result of these factors, Beasley reported a net loss of $14.5 million for the three months ended June 30, 2022.
Beasley Media Group CEO Caroline Beasley said digital revenue jumped 34.3% and made up about 16.5% of the company’s revenue in Q2. “Digital remains a central component of our revenue diversification strategy, and the momentum we are seeing in our digital business is further underpinned by our ability to grow digital revenue 37% on a quarterly sequential basis, while also improving our digital margin. Our new business performance was robust this quarter, as we recorded $7.8 million in new business revenue, representing a 60% increase from the first quarter of 2022 and 16% growth over the comparable prior year period. In addition, we acquired a small white label digital agency at the end of June, which will immediately contribute positive cash flow and synergies. We believe these results continue to demonstrate the inaccuracy of the perception that radio is more challenged than other segments of the technology, media, and telecom sectors.”
Beasley’s total debt as of June 30, 2022 was $295.0 million, with $45.9 million of cash in the bank.
Beasley added that cuts were being made to deal with the “declining economic environment. “We initiated cost reductions beginning in the second quarter. Looking ahead, we will continue to focus on controlling what we can control, maximizing our growth opportunities, managing our expenses and capital structure, serving our audiences and advertisers and delivering results for our stockholders.”