Radio Ink - Radio's Premier Management & Marketing Magazine

October 30, 2009: Beasley Broadcast Group's net revenues were $24.4 million in the third quarter of this year, down 20.1 percent from $30.6 million in the same period a year ago. The company said the down revenue was related to "the overall downturn in advertising spending as a result of the weak macroeconomic environment," with about two-thirds of the decline related to its clusters in Miami, Philadelphia, and Las Vegas.

Operating income was down 3.4 percent, to $5.8 million from $6 million, primarily reflecting lower net revenue that more than offset that companywide cost-cutting that decreased Beasley's operating expenses 24.3 percent in Q3. Station operating income in the quarter was down 24.1 percent, to $6.9 million from $9 million.

Beasley's net income in Q3 was $1.4 million (6 cents per share), compared to $2.3 million (10 cents) in Q3 2008.

"As anticipated, the radio industry continued to be challenged during the third quarter of 2009 as a result of the economic recession and its ongoing impact on advertising spending," Beasley Chairman/CEO George Beasley said. "Notwithstanding the current environment, Beasley's revenue comparisons improved in the third quarter relative to the 2009 first and second quarters, partially reflecting progress in key Beasley markets such as Philadelphia and Fort Myers. The company also continued to drive significant high-margin revenue growth from our interactive initiatives with third-quarter revenue from these sources rising approximately 12 percent from 2008 third-quarter levels."

He continued, "While it is difficult to gauge the pace of an economic recovery, we were pleased to see initial improvements in advertiser activity in the third quarter and are confident that Beasley is well positioned to benefit from healthier levels of overall advertiser spending as it occurs as well as political revenue in 2010. Looking forward, with Beasley’s streamlined cost and operating structure and slight improvements already visible in certain distressed markets, we firmly believe that even modest increases in radio advertising spending can result in an overall gain in our operating results."