Beasley Broadcast Group Revenue Down Slightly In Q1
April 30, 2014
Beasley Broadcast Group has reported its fiscal results for the first quarter of 2014. Overall net revenue dipped by 2.4 percent, from $24.8 million a year ago to $24.2 million. The decline was attributed to lower ad revenue at Beasley's Miami-Ft. Lauderdale and Philadelphia stations.
Station operating income fell by 12.2 percent to $7.1 million, attributed to the lower net revenue and a 2.4 percent increase in station operating expenses, in part due to last fall's acquisition of KVGS/Las Vegas. Operating income was down 22.3 percent to $4.2 million, while net income dropped 71.8 percent from $2.4 million to $0.7 million.
George G. Beasley, Chairman/CEO, commented "The first quarter decline in net revenue reflects several factors that primarily impacted our three largest markets, including the severe winter weather which had a negative effect on our operations in the northeast.
"Overall, for our five markets that report to Miller Kaplan -- which represent approximately 77 percent of total first quarter revenue -- Beasley station cluster revenue declined by 4.3 percent, while the total revenue for all reporting radio stations in these markets decreased by 0.3 percent for the quarter. In Philadelphia, our cluster underperformed the market for the first time since mid-2012 as business was significantly impacted by the severe winter weather that pressured billings, particularly among our local customers, and caused our stations to close for the equivalent of approximately three business weeks during the first quarter. In Miami, the first quarter underperformance largely relates to the revenue decline at our AM Sports Talk station following the departure of a popular afternoon host. On April 1, we addressed this situation directly by re-launching our afternoon drive programming with the addition of another highly rated Miami sports talk show host from a direct competitor in the market. Notwithstanding the challenges endured in the first quarter, our ratings and market position in both Philadelphia and Miami remain strong.
"A final factor which negatively impacted first quarter revenue results was the completion of comprehensive training for our sales team regarding our new digital and NTR initiatives. While this training took our sales teams away from customers for several days, we believe it was essential to drive growth in these areas of our business going forward. Our planned investments in sales and programming and the expansion of our digital offerings, combined with the revenue decline, led to a 12.2 percent decline in first quarter 2014 SOI compared to year-ago levels."