Beasley Reports 3.6 Percent Revenue Decline

Beasley Broadcast Group today announced operating results for the three-month and six month periods ended June 30, 2014:

The $1.0 million, or 3.6%, year-over-year decline in net revenue during the three months ended June 30, 2014, primarily reflects lower advertising revenue at the Company’s Philadelphia, Wilmington and
Greenville-New Bern-Jacksonville market clusters. The decline in net revenue was partially offset by $0.7 million in other revenue, resulting from an agreement with an electronics company and its affiliate concerning the use of our and their respective logos.

Lower net revenue in the 2014 second quarter was partially offset by a $0.4 million, or 2.3%, reduction in station operating expenses.

Commenting on the results, George G. Beasley, Chairman and Chief Executive Officer, said, “Second quarter revenue levels reflect slower advertising spending across most markets where we operate which led to declines in seven of our eleven markets and lower station operating income.

George G. Beasley

“Overall, we outperformed in our five market clusters that report to Miller Kaplan. In these markets, which accounted for approximately 78% of total second quarter revenue, Beasley station cluster revenue declined 5.2%, compared with the total revenue for all reporting radio stations in these markets which were down 6.0% for the quarter. Our year-over-year revenue decline is partially attributable to difficult comparisons with 2013 second quarter results when we generated double digit revenue gains in markets including Philadelphia and Las Vegas. However, our initiatives to expand our digital offerings are delivering results as we recorded an approximate 24% rise in digital revenue during the quarter. Notwithstanding the challenges faced in the second quarter, our market positions remain healthy based on our organization-wide focus on strong core programming and targeted localism.

“Looking forward, we remain focused on ensuring that our station clusters match or exceed their market’s revenue performance while further strengthening our balance sheet."