Beasley Reports Revenue Increase For 2Q

Beasley Broadcast Group, Inc. today announced operating results for the three- and six-month periods ended June 30, 2022.

Net revenue during the three months ended June 30, 2022 increased 8.8% to $64.8 million, primarily reflecting a year-over-year increase in audio and digital revenue due to the continued recovery of the commercial advertising market from the effects of the COVID-19 pandemic and higher political advertising revenue.

Beasley reported an operating loss of $4.5 million in the second quarter of 2022 compared to operating income of $5.8 million in the second quarter of 2021. The operating loss in the second quarter of 2022 primarily reflects an $8.6 million non-cash impairment loss due to an increase in the discount rate used in the analyses to estimate the fair value of FCC licenses and goodwill in a rising interest rate environment. For the comparable three months ended June 30, 2021, the Company recorded $1.5 million of other operating income, net from life insurance proceeds related to the death of George Beasley, the Company’s former Chairman.

As a result of these factors, Beasley reported a net loss of $14.5 million, or a negative $0.48 per diluted share, in the three months ended June 30, 2022, compared to net income of $0.2 million, or $0.01 per diluted share, in the three months ended June 30, 2021.

SOI increased by $0.1 million to $11.2 million in the second quarter of 2022 from $11.1 million in the second quarter of 2021. The increase is primarily attributable to higher net revenue, which more than offset higher operating expenses.

Commenting on the financial results, Caroline Beasley, Chief Executive Officer, said, “Beasley delivered another period of strong top-line results in the second quarter, reflecting solid year-over-year growth across all of our revenue sources. Net revenue increased 8.8%, inclusive of a 4.3% rise in audio revenue and a 34.3% rise in digital revenue, with digital accounting for 16.5% of second quarter net revenue.

Caroline Beasley

“Digital remains a central component of our revenue diversification strategy, and the momentum we are seeing in our digital business is further underpinned by our ability to grow digital revenue 37% on a quarterly sequential basis, while also improving our digital margin. Our new business performance was robust this quarter, as we recorded $7.8 million in new business revenue, representing a 60% increase from the first quarter of 2022 and 16% growth over the comparable prior year period. 

"In addition, we acquired a small white label digital agency at the end of June, which will immediately contribute positive cash flow and synergies. We believe these results continue to demonstrate the inaccuracy of the perception that radio is more challenged than other segments of the technology, media, and telecom sectors.

“We are keeping a close eye on the declining economic environment and initiated cost reductions beginning in the second quarter. Looking ahead, we will continue to focus on controlling what we can control, maximizing our growth opportunities, managing our expenses and capital structure, serving our audiences and advertisers and delivering results for our stockholders.”