Continued economic volatility and digital growth were the themes of Beasley Media Group’s 2024 Q1 earnings report, as the company posted $8,000 in net income – a significant improvement from the $3.5 million net loss during Q1 of 2023.
During Wednesday morning’s call, CEO Caroline Beasley and CFO Marie Tedesco discussed a 5.9% decrease in net revenue, which amounted to a $3.4 million drop, settling at $54.4 million. The company experienced an operating loss of $1.1 million, a shift from the $0.4 million operating income reported in the same period in 2023.
The company’s saving grace for the quarter came in the form of a $6 million gain from the sale of an investment in Broadcast Music, Inc. following BMI’s acquisition by New Mountain Capital.
Decline was largely attributed to a decrease in audio advertising and other revenues, exacerbated by the divestiture of the broadcaster’s WJBR in Wilmington, DE to VCY America.
Digital revenue, which has become increasingly central to Beasley’s strategy, grew by 20% on a same-station basis, contributing significantly to the quarter’s financial activities. 38% of Beasley’s total audience now engages through the company’s digital platforms. Political revenue also provided a substantial boost, as expected, with $548,000 recorded in the quarter.
Sports betting yielded positive results, with revenues increasing by 17% to $4.9 million. This was largely driven by the regulatory changes in North Carolina, allowing sports betting that benefited the company’s stations in Fayetteville and Charlotte. This segment now represents 9% of Beasley’s total quarterly revenue.
For other ad genres, consumer services stood out as the largest revenue generator, accounting for 31.9% of total revenue with a year-over-year increase of 5.3%.
As for the future, Beasley expects digital revenue to comprise 20-25% of its total revenue in 2024, driven by content creation and digital service expansions. However, the overall advertising market remains uncertain, and Beasley is adjusting its cost structure to mitigate potential impacts – one adjustment occurred yesterday in the form of a reduction in force representing 7% of the company’s total staff.
Caroline Beasley remarked, “In summary, Beasley’s underlying fundamentals — mainly, our local audio and digital platforms and audience engagement — remain strong. We are proud of our teams’ steadfast commitment to delivering exceptional content and services to our listeners, advertisers, online users and sports fans, and remain confident that the actions we are taking to transform our company and strengthen our balance sheet, are laying the foundation for future growth and success.”
