Beasley Broadcast Group’s third-quarter net revenue declined 5.7 percent to $60.1 million from $63.8 million in 2022.
Furthermore, the losses in the third quarter didn’t stop there, as Operating income swung to a loss of $85.5 million from $4.7 million. Adjusted EBITDA fell 23.6 percent to $5.5 million from $7.2 million.
Beasley Broadcast Group also posted a net loss of $67.5 million ($2.25 per diluted share) compared to a net income of $0.5 million (2 cents) in the year-ago period. In Q3, the operating loss, net loss, and net loss per diluted share were affected by non-cash impairment losses.
The net revenue during this period decreased year-over-year due to a reduction in cyclical political advertising and commercial advertising, which is a result of the ongoing weakness in the agency business.
“Beasley’s third quarter financial results reflect the well-publicized economic challenges and continued advertising market softness which we outlined in the prior quarters,” CEO Caroline Beasley said.
“While we saw sequential month-over-month improvement in our advertising revenue performance from August to September, our net revenues for the 2023 third quarter decreased 5.8% year-over-year, or 3.2%, when excluding the year-over-year decrease in political advertising revenue of $1.9 million.
“Importantly, Beasley’s ongoing expense management, revenue diversification, and new business initiatives resulted in lower operating expenses and healthy growth across our digital, network, and other revenue sources, and we generated third-quarter adjusted EBITDA of $5.5 million.”
However, the decline was partially offset by growth in digital advertising and other sources of revenue.
“Similar to recent quarters, Beasley delivered strong digital revenue growth of 9.1% year-over-year, with digital revenue representing 18.6 percent of total third-quarter revenue,” Beasley added.
“Our continued strong digital revenue growth has moved us to within a few basis points of reaching the bottom end of our goal of digital revenue accounting for 20% to 30% of total revenue, and we remain laser-focused on this initiative as a means to diversify our revenue in a cash flow positive manner.”
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at eddie1991razo@gmail.com.
