Beasley Sees Q4 Gains, But Layoffs and Refinancing Take a Toll

Beasley Media Group CEO Caroline Beasley described 2024 as a “pivotal year” for the broadcaster, emphasizing efforts to streamline and strengthen its financial position as a modest Q4 revenue increase helped offset refinancing and restructuring costs.

Total net revenue for the fourth quarter was $67.3 million, a 2.3% increase compared to Q4 2023. Political advertising played a significant role in offsetting declines in national and local ad spend, contributing $8.3 million in revenue for the quarter. “We exceeded our full-year expectations for political, delivering $12.1 million for the year, driven primarily by strong federal election spending in key battleground states,” Beasley said.

Even with the increase, Beasley reported a net loss of $2.1 million for the quarter, compared to a net income of $6.4 million in Q4 2023. The company pointed to one-time expenses related to its September exchange offer, October refinancing, and severance costs from layoffs in late 2024.

For the full year, Beasley posted $240.3 million in revenue, down from $247.1 million in 2023. Political ad revenue totaled $12.1 million for the year.

Same-station revenue for Q4 increased by 4.4%. Digital revenue accounted for 17.1% of total revenue in the quarter, slightly down from 19.4% in Q3. However, Beasley noted that total digital revenue actually increased sequentially from Q3 to Q4. “The percentage decline is primarily due to the surge in political during the quarter, which impacted overall revenue mix,” Beasley explained.

For the full year, the company reported a net loss of $5.9 million – an improvement from the $75.1 million net loss in 2023. Digital revenue made up 19.4% of total revenue, up from 18.4% in the year prior.

Looking at national revenue outside of political advertising, Beasley reported a 4.9% decline in Q4, an improvement from the 16% drop in Q3. “National represented 12.4% of total revenue for the quarter, down slightly from 12.7% in Q3,” Beasley said. She warned that national ad spending could face further pressure, particularly in industries such as automotive and consumer goods, where proposed tariffs might lead to constrained demand and cautious marketing budgets.

Local revenue followed a similar trend, with over-the-air revenue declining 5.7% in Q4 and local direct revenue down 5%. “This was partially due to the strength of our political advertising performance, which led to inventory constraints across several of our key markets, limiting availability for local advertisers,” Beasley said. As a result, local direct accounted for 54% of Beasley’s total local business in Q4, down from 57% in Q3.

New business development also slowed, with revenue in that category declining 12.8% year-over-year. Beasley remains optimistic about growth opportunities in this area. “By leveraging data-driven audience insights, expanding our sales outreach, and enhancing our audience engagement, we are confident in our ability to rebuild momentum,” she said.

Beasley Media Group Chief Financial Officer Lauren Burrows Coleman provided a deeper dive into the company’s financial performance by vertical.

Consumer services remained the company’s largest revenue segment at 24.5% of total revenue, while retail accounted for 13.8% and entertainment 15.3%. Sports betting revenue for Q4 came in at $4.1 million, down $1.1 million year-over-year. “This decline reflects an industry-wide shift away from aggressive consumer acquisition strategies towards a more sustainable focus on customer retention and profitability,” Coleman said.

The automotive sector, meanwhile, remained relatively flat, but the import segment saw notable growth, rising 115% year-over-year. However, uncertainty looms over the industry, as proposed tariffs could significantly impact vehicle pricing and marketing budgets.

Interest expenses for the quarter fell to $3.5 million, a $3.4 million year-over-year reduction, thanks to debt repayment efforts. “We ended the fourth quarter with total principal outstanding on our notes of $220 million, down significantly from $267 million at the end of 2023,” Coleman said.

Looking ahead to Q1 2025, Beasley expects same-station revenue to decline approximately 10%, with February’s performance contributing to the downward trend. “Advertisers remain cautious amid ongoing economic uncertainty, leading to more measured spending patterns,” Beasley said. “While near-term headwinds persist, we are focused on driving digital growth, strengthening advertiser relationships, and executing our revenue diversification strategy.”

When asked about potential station swaps, sales, or acquisitions should the FCC choose to loosen ownership caps under Chairman Brendan Carr, Beasley said the company remains open to opportunities.

Beasley closed the call with optimism, saying, “We’re confident that the strategic foundation we built, rooted in technology and operational rigor, will allow us to outperform the marketplace, capture greater value for our advertisers, and deliver long-term growth for our shareholders.”