While other radio companies have been reporting higher revenues in Q1, Beasley Broadcast Group says it is being held back by underperformance in its Miami, Philadelphia and Fort Myers-Naples, FL markets. Nonetheless, station operating income was up in the quarter.
“Increases in 2010 first quarter SOI, operating income and net income highlight the value of the Company’s streamlined cost structure. Overall, the radio industry and Beasley Broadcast Group have begun to see a rebound in advertising spending. In the 2010 first quarter we generated monthly sequential improvements in revenue, with March representing the first month in over two years that Beasley Broadcast Group recorded revenue growth. Reflecting our close watch on station and corporate expenses, the Company generated first quarter year-over-year SOI growth of 13% with margins increasing to 28% for the 2010 first quarter, up from 24% in the comparable period last year. The Company also continues to drive strong interactive revenue growth with revenue from these sources rising approximately 22% in the 2010 first quarter compared with 2009 first quarter levels,” said CEO George Beasley.
“While key Beasley clusters in Philadelphia, Las Vegas, Augusta and Coastal Carolinas grew revenue in the quarter relative to the same period in 2009, there remains significant upside in Miami, Philadelphia and Fort Myers-Naples as our clusters in these markets under-performed relative to their respective markets. In each case we are addressing the specific issues that impacted the ability of these clusters to take full advantage of ad spending improvements in the market and expect to see revenue performance in future periods more closely reflect the strength of our station operations and the health of the market,” he added.
In Q1, Beasley Broadcast Group saw net revenues decline 3.2% to $21.8 million from $22.6 million. On a same station basis, excluding some Las Vegas station assets divested last August, revenues were down 1.8% to $21.8 million from $22.2 million.
SOI in Q1 was $6.1 million, up 33.1% from $5.4 million a year ago. On a same station basis, SOI was up 8.9% to $6.1 million from $5.6 million.
CFO Caroline Beasley noted that each month of Q1 improved sequentially and March was the first month since the recession began that Beasley’s revenues were up from the same month a year before – and that sequential improvement has continued.