Beasley Net Income Drops, Same-Station Revenue Falls For Q3
November 5, 2007 at 5:36 AM (PT)
BEASLEY BROADCASTING GROUP third-quarter net revenue rose 7.2% to $33.3 million (same-station off 2.1%), but net income fell 58% to $1 million (4 cents/diluted share). The revenue increase was credited to the addition of AC WJBR/WILMINGTON, DE and increased revenue in MIAMI due to the return of DOLPHINS football to Sports WQAM-A, offsetting declines at seven of 11 clusters.
Chairman/CEO GEORGE G. BEASLEY said, "Despite the weak industry environment, BEASLEY BROADCAST GROUP's third-quarter revenue exceeded the guidance provided at the time we reported second-quarter results as we benefited from better than expected performance from our PHILADELPHIA and FAYETTEVILLE clusters. We also out-performed the MIAMI and PHILADELPHIA markets and, in aggregate, our station clusters out-performed their markets on a total spot and national basis. Growth in MIAMI, our largest revenue market, was led by continued gains at (WPOW) POWER 96 and stronger results at our sports station (WQAM-A) related to our football broadcast rights and related programming.
"These factors offset general industry softness as well as the expected revenue decline at our LAS VEGAS cluster. While station operating expenses and SG&A expenses rose due to our new stations, the football broadcast rights in MIAMI, increased promotion, programming and other costs, cost disciplines remain an important element of our operating strategy and the increases recorded in the third quarter were below the levels provided in our guidance.
"Notwithstanding our 7.2% revenue increase in the period, on a same-station basis, as expected, revenues declined 2.1% primarily as a result of recent programming changes at two LAS VEGAS stations and overall market softness particularly in FORT MYERS and the COASTAL CAROLINA markets. Our LAS VEGAS cluster is in transition following programming and on-air changes at KKLZ-FM and KFRH-FM intended to position the cluster to resume the growth it had been achieving based on the successful Country station format launch in 2005.
"With sales and operating improvements achieved in PHILADELPHIA, MIAMI and several other clusters over the last several years, we remain confident in our ability to deliver gains in future periods based on strategic operational, personnel and programming changes as well as through select acquisitions. In addition, during the third quarter we continued to achieve significant revenue growth from our interactive initiatives. Third-quarter interactive revenues accounted for approximately 3.2% of the Company's total revenue compared with a contribution of approximately 1.8% in the year-ago period."
The company's guidance is for net revenue to fall 2% (same-station, excluding DOLPHINS football revenue, off 6%) for fourth quarter.