Beasley Media Group has become the first radio company to report its fourth-quarter earnings for 2023, but the news was a mixed bag for the company.
The company saw a revenue decline of 8.7% in Q4 compared to 2022. In total, revenues dropped from $72 million in 2022 to $65.7 million for the quarter with adjusting earnings dropping by more than 50%.
Operating income for the company in the 4th quarter was $7.6 million. That figure is a drastic change from the same quarter in the previous year, which was an operating loss of $31.7 million. Part of the swing is the company is no longer paying a franchise fee for the Houston Outlaws eSports team it purchased in 2019 in the Overwatch league, which was dissolved in 2023.
“Beasley’s fourth quarter and full year financial results reflect the impacts of cyclical political revenue and ongoing advertising market softness, partially offset by the continued success of our revenue diversification strategy and cost management initiatives,” said Beasley Media Group CEO Caroline Beasley.
Upon the completion of Activision’s sale to Microsoft, the Overwatch e-sports league was discontinued, and our Houston Outlaws team was dissolved. In December, Activision paid Beasley $6.0 million in exchange for the return of our franchise license,” Beasley continued. “As a result, we made the strategic decision to pivot our focus toward higher-margin gaming content creation under our new Outlaws Entertainment brand.
“Consistent with Beasley’s commitment to enhancing financial flexibility and cash flows through debt reduction, we used the proceeds from these transactions, along with cash on hand, to repurchase $20 million of our senior secured notes at a discount. In 2023, we reduced debt by $23.0 million, strengthening our balance sheet and lowering our quarterly interest expense. With the return of the political advertising cycle and expectations for further digital growth in 2024, we intend to continue to opportunistically repurchase our senior secured notes this year.”
