Beasley Media Group reported a mix of progress and challenges in its Q3 2024 earnings call. The company faced a dip in overall net revenue, reporting $58.2 million, down from $60.1 million a year prior in the face of reduced audio advertising and business changes.
CEO Caroline Beasley opened the call with praise for outgoing CFO Marie Tedesco, who recently retired after 33 years with the company. Beasley went on to introduce Tedesco’s successor Lauren Burrows Coleman, who was on the call less than a week after her start date.
Beasley highlighted how, “Improving our capital structure is a strategic priority for the business,” as made obvious by the broadcaster’s recent debt swap to extend 2026 maturity deadlines until 2028. In Q3, Beasley Media also implemented a reverse stock split at a 1-for-20 ratio to remain on the Nasdaq Stock Exchange.
Beasley reported that same-station revenue increased 0.5% year-over-year after adjusting for the sale of Wilmington station WJDR and the closure of its eSports division. However, total revenue declined by 3.2%, which the company attributed to market challenges and the ongoing softness in ad spending.
The call emphasized digital’s growing role in the revenue mix, with digital income up 1.1% and accounting for 19.4% of total revenue in Q3, an increase from 16% two years prior. Beasley noted that the shift to digital is part of a broader company strategy, which also included closing the white-label agency Guarantee Digital in July to streamline operations. “On a same-station basis, digital grew 11.7%,” she said, underscoring the company’s commitment to expanding digital opportunities.
Political ad revenue provided a significant boost, with Beasley reporting $2.7 million in net political revenue for the quarter, raising year-to-date totals to $3.7 million—a 23% increase from the same period in 2020. This success will continue into Q4’s reporting, with $8.2 million in political revenue year-to-date.
National advertising, however, faced more obstacles, particularly in the lead-up to the election. National revenue dropped by 16% excluding political ads, and local retail also saw a dip due to economic uncertainty. Retail declined 5.2% year-over-year in Q3, but entertainment spending rose 1.2%.
Despite challenges in the ad market, the company found growth in local direct business, with new local business up 1.9% year-over-year and 4.2% on a same-station basis. Year-to-date, new business increased by 18.8%.
Beasley also discussed recent cost-cutting measures, estimating over $5 million in annualized savings due to voluntary early retirements, layoffs that cut full-time employee count by 15%, and other efficiency measures.
As for Q4, Beasley shared that same-station pacing remains positive for November but indicated a 10% decline anticipated for December. “We are hearing from our advertisers that they are hesitant to book prior to the election results,” she stated, noting that while political revenue remained strong, the broader ad market remains cautious.
