Net revenues were down 1% to $24 million in Q3 for Beasley Broadcast Group. But if you exclude the $300K of political advertising from last year, CFO Caroline Beasley told investors the quarter was flat to slightly up.
Station operating income held up well, slipping only 2.3% to $8.2 million. Net income actually increased, lowing to lower interest costs on the company’s debt. Net income increased 12.6% to $2.3 million and earnings per share rose a penny to 10 cents.
“While concerns about the US and global economies, as well as weakness in the capital markets, persisted throughout the quarter, Beasley Broadcast Group’s 1% revenue decline during the period was primarily attributable to a reduction in political spending in a non-election year. Excluding the impact of political, revenue was flat for the quarter,” said Chairman and CEO George Beasley (pictured). “While we continue to experience revenue volatility in our markets, our clusters saw monthly sequential revenue improvements throughout the quarter with September ending on a positive note despite year-ago comps, which included political spending. In addition, despite the challenging economy, revenue volatility in our markets, and the cyclical impact of political advertising, in the first nine months of 2011 Beasley Broadcast Group generated a 2.2% rise in revenue that, combined with a decline in station operating expenses, drove an 8.6% increase in station operating income and margin growth to 34.4% from 32.3%.”
RBR-TVBR observation: 2010 hasn’t been the gangbuster growth year that many had hoped for back in Q1, but it is still holding up as a growth year. Beasley’s revenues are up for the year to date through the first three quarters, even if you include the political windfall from last year. And note how lower interest rates have boosted the bottom line.