Beasley Media Group reported Q3 earnings Monday announcing a 1.5% increase over the same 3 months a year ago. Total revenue came in at $63.8 million for the Naples, FL based company.
Digital, political and other revenue were up, offset by a decrease in national radio revenue.
The company reported operating income of $4.7 million in the third quarter of 2022 compared to $4.9 million in the third quarter of 2021, this slight decrease was driven by a $1.2 million increase in corporate expenses related to investments in digital and severance expenses.
CEO Carline Beasley was pleased with the performance of the company in the quarter. “Beasley delivered another strong period of operating and financial performance, reflecting the ongoing success of our digital transformation and revenue diversification strategies. Top-line growth was the primary factor contributing to a 5.1% year-over-year increase in SOI to $12.3 million and was driven by continued strength in local audio advertising and impressive growth in our digital business.
Beasley went on to say that digital continues to be a growing division for the company. “Digital remains a key component of our revenue diversification strategy. Digital revenue increased 23.1% year-over-year representing 16.0% of total third quarter revenues, while our digital margin improved. Our digital performance benefited from a first full quarter contribution from the white label digital agency we acquired in late June, which we believe will continue to accelerate our digital revenue growth and provide meaningful synergies with our growing digital platform. In both the second and third quarters, digital revenue accounted for a larger share of our revenue than national advertising, and we expect this revenue source to continue offsetting national spot weakness in the coming quarters.”
And finally, on the overall economic outlook, the Beasley CEO says it’s tough out there. “Regarding the economic environment, like many companies, we are managing through some challenging market conditions with a focus on what we can control. We continue to experience increased volatility in national spot advertising, which accounted for approximately 15% of our third quarter net revenues. The ongoing strength of our digital and local audio advertising revenues is helping us to partially offset these declines. We are also taking actions on the expense side, and have implemented approximately $10.0 million in expense reductions, of which roughly half were from a reduction to headcount.”
