When we last heard a company earnings call from CEO Caroline Beasley, Beasley Media Group was putting an increased focus on expanding its digital arm. Expect to see more of that after a pre-summer slump fueled by economic headwinds in Q2.
Despite the decline in spot revenue, countered by digital growth, net revenue decreased slightly to $63.5 million from $64.8 million. However, the company’s net loss contracted to $10.4 million, or $0.35 per share, compared to a net loss of $14.5 million, or $0.49 per share, in Q2 2022.
On the earnings call, Caroline Beasley highlighted a 32% surge in network revenue and an 18% rise in digital dollars in Q2. Yet, like its industry counterparts, the company experienced an 11% drop in national revenue. A soft local agency market also led to a 3% decrease in Q2 ’22 Local revenue.
Chief Financial Officer Marie Tedesco further discussed Q2 ad performance by category. Despite a slight YoY decrease, Consumer Services remained the top category, accounting for 31% of total revenue. Retail stood at second place, constituting 17% of total revenue, and Entertainment fell to third place with 14% of total revenue.
As of June 30, the company’s total outstanding debt was $287 million, and the interest expense for the second quarter was slightly reduced to $6.7 million. Beasley had $35.5 million in cash and cash equivalents on hand at the quarter end, offering flexibility to reduce debt and interest expenses.
For Q3, the company expects a 3% drop in revenue, with July falling by 5%, August dropping by 3%, and September pacing up 1%, but company leaders remain optimistic. Beasley said, “Looking ahead, we are closely monitoring local and national economies and believe that our current operating structure will result in positive cash flow for the balance of the year and for the full year 2023.”
