Beasley Sells Hometown Cluster In Q2 Earnings Call Stunner

Beasley Media Group’s second-quarter earnings call opened with a sharp surprise: the news that the company has made two agreements, selling off all of its broadcast properties in its hometown market of Fort Myers-Naples amid pivots to a “digital-first” focus for the future.

CEO Caroline Beasley wasted no time making an announcement that WBCN-AM, WJPT, and WWCN are being sold to an undisclosed third party for $9 million, while WRXK and WXKB are moving to another unnamed buyer for $9 million, pending FCC approval.

Proceeds will be used to reduce debt. “As stated in previous quarters, we remain open to additional opportunities where the strategic rationale is compelling and the financial impact supports our broader objectives,” Beasley said.

The company reported a net loss of $200,000 in Q2, narrowing slightly from a $300,000 loss in Q2 2024. Total net revenue declined 11.1% year-over-year on a same-station basis, driven primarily by weakness in agency business.

CFO Lauren Burrows Coleman called it “structural, not cyclical,” citing changes in media buying driven by AI-powered planning tools that favor channels with measurable digital attribution. National agency revenue fell 12.1% and local agency dropped 24.7%. “Radio is being systematically deprioritized in media mixes… not necessarily due to performance, but because it is underrepresented in the digital data sets and signals that power these tools,” Coleman explained.

Digital revenue grew 1.3%, or 8.1% on a same-station basis, and accounted for 25% of company revenue for the first time. Digital segment operating margin rose from 17.8% in Q1 to 26.8% in Q2, aided by a higher share of owned-and-operated inventory and programmatic platform improvements. “This margin expansion is the result of targeted product development, disciplined sales alignment, and increasingly efficient infrastructure,” Beasley said.

Local direct revenue increased 1.7%, now making up the majority of Beasley’s local sales mix. To build on this, the company is restructuring its sales organization to shift from legacy agency models to a digitally fluent, local-first approach. “Our sales organization has not yet fully evolved to offset these losses through direct, digitally-led selling, an area where we are now making deliberate changes,” Beasley said. “We are training AEs to lead with full-funnel marketing strategies, bundling on-air endorsements with trackable digital solutions.” She noted that integrated campaigns have shown more than 30% higher purchase intent than single-platform buys.

Beasley has cut roughly $30 million in annualized costs over the past year through corporate streamlining, vendor optimization, and market-level resource alignment. Q2 operating expenses were down 9.3% year-over-year. “Our aim is not just to cut costs – it’s to rebalance the organization for long-term sustainability and value creation,” Beasley said.

Looking ahead, agency revenue is expected to remain soft in Q3, with national and local agency pacing down 20% and 15%, respectively.

Digital is projected to make up 25–30% of revenue. The company plans to launch new products this year, including Display Plus, an expanded video platform, and a self-serve ad buying system. “By the end of the year, we will be launching our self-serve advertising platform… a turnkey solution designed for the long tail,” Beasley said, adding that it will allow SMBs to “plan, purchase, and manage their campaigns entirely online” using AI tools.

Beasley closed the call with a clear message: “We are delivering on the roadmap we laid out. That consistency matters. It builds trust with our partners, confidence with our investors, and clarity with our lenders.”