Release Date: March 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Beasley Broadcast Group Inc (BBGI, Financial) achieved over $20 million in annualized savings through workforce realignment and technology-driven efficiencies.
- The company successfully executed strategic capital structure initiatives, improving its leverage profile and reducing financial risk.
- Political advertising revenue was strong, with $8.3 million in Q4 and $12.1 million for the full year, driven by federal election spending.
- Digital revenue as a percentage of total revenue increased to 19.4% for the full year, indicating growth in digital offerings.
- Station operating income (SOI) increased by 46% year-over-year in Q4, reflecting improved profitability.
Negative Points
- National advertising revenue, excluding political, declined by 4.9% in Q4, with further pressure expected in sectors like auto and consumer goods.
- Local over-the-air revenue declined by 5.7% in Q4, reflecting broader market trends and inventory constraints due to strong political advertising.
- New business development revenue declined by 12.8% year-over-year in Q4, indicating challenges in attracting new advertisers.
- Sports betting revenue decreased by $1.1 million year-over-year in Q4, reflecting a shift in industry strategies.
- Cash on hand decreased to $13.8 million at the end of Q4, down from $27.8 million at the end of Q3, due to debt repayments and restructuring fees.
Q & A Highlights
Q: Political seemed particularly strong for Q4. Were there certain markets that led?
A: Yes, there were. We saw significant political dollars in Charlotte, Philadelphia, and Detroit. We also saw meaningful dollars from Las Vegas. - Caroline Beasley, CEO
Q: Are you seeing any resumption in national advertising in Philadelphia and Boston?
A: National in Boston is pacing down, but national in Philadelphia is pacing up. Combined, these two markets are pacing up. However, overall national pacing is down roughly about 10%, primarily driven by sports betting pullback in Charlotte. - Caroline Beasley, CEO
Q: How much of the $20 million of cost savings hit the 2024 numbers?
A: Improvements in EBITDA per indenture already reflect annualized cost savings in excess of $20 million. We expect to see the full benefit of these cost savings in 2025. Further reductions in Q4 exceeded $3 million, with only $0.5 million impacting Q4, leaving an extra $2.5 million plus in annualized savings not seen in the quarter. - Lauren Coleman, CFO
Q: Could you comment on the potential for regulatory changes? Would you be open to station swaps or selling stations to reduce debt?
A: The regulatory environment seems ripe for changes for both radio and TV, and we are supportive and hopeful for this to occur soon. We are always open to swaps or sales if the deal is right for the company. - Caroline Beasley, CEO
Q: What are the expectations for digital revenue growth in 2025?
A: We expect digital to drive roughly half of all new business in 2025, fueled by the expansion of offerings like streaming audio, newsletters, and new premium products. Our focus on data-driven marketing solutions and enhancing inbound lead generation ensures we remain a strategic partner for advertisers. - Caroline Beasley, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
