Beasley Broadcast Group Margins Improve Despite Revenue Decline – CEO Looks to 2024 Political Revenue for Growth

NAPLES, Fla. – Beasley Broadcast Group, Inc. announced their Q4 2023 earnings results on February 12, 2024, revealing a decline in revenue due to factors such as cyclical and political revenue, and overall ad softness. Despite this, the company remains optimistic about the growth of their digital platform and the opportunities it presents for the future.

Caroline Beasley, the CEO of Beasley Broadcast Group, reported that the fourth quarter revenue declined by 8.7%, better than the previously expected 9%, while the full year revenue dropped 3.6%. However, excluding political revenue, the decline would have been much smaller. With a focus on expense control, the company managed to reduce total expenses and recorded an increase in digital revenue for the full year.

Their digital revenue, which now represents 18.2% of total revenue, showed a year-over-year increase, and the company expects it to account for between 20% to 25% of total revenue in 2024. Additionally, sports betting revenue saw a significant increase, with more than 50% of it coming from the Boston cluster.

Beasley Broadcast Group also closed on two transactions in the fourth quarter, one being the sale of their Wilmington single station, and the other related to the dissolution of their esports team as a result of Activision Blizzard’s sale to Microsoft. The company used the proceeds from these transactions, along with a portion of their cash on hand, to buy back $20 million of their debt, showcasing efforts to reduce their overall debt.

Furthermore, the company has maintained dominant positions in Nielsen, with their radio brands experiencing growth in audience reach. Additionally, their community-focused initiatives continue to have a positive impact on the lives of their listeners, further solidifying their commitment to making a difference in the local communities they serve.

Looking forward to the first quarter of 2024, the company is pacing down compared to the prior year, and while they are optimistic about political revenue for the year, they remain focused on improving margins, reducing leverage, and generating free cash flow.

Beasley Broadcast Group’s dedication to managing expenses, growing their digital platform, and continuing their community-focused initiatives sets them on a path for potential growth in the future.