Beasley Revenues Dip For Q1
May 5, 2008 at 5:10 AM (PT)
BEASLEY BROADCAST GROUP first-quarter net revenues dipped 4.6% to $29.4 million, but net income rose 6.3% to $1.2 million (flat at 5 cents/diluted share). The drop in revenues was blamed on a $1 million decline in FT. MYERS-NAPLES and a $500,000 dip in LAS VEGAS, more than offsetting gains in MIAMI, PHILADELPHIA, GREENVILLE-NEW BERN, and AUGUSTA.
Chairman and CEO GEORGE BEASLEY said, "The radio industry and BEASLEY BROADCAST GROUP continued to face a challenging economic climate in the first quarter of 2008. Our first-quarter revenue performance was mixed reflecting the generally soft performance of the industry, specific challenges facing our FT. MYERS and LAS VEGAS market clusters and our success in driving revenue growth in MIAMI, PHILADELPHIA, GREENVILLE-NEW BERN, and AUGUSTA, though growth in MIAMI was slightly less than forecasted. In addition, during the first quarter we continued to achieve revenue growth from our interactive initiatives. First quarter interactive revenues accounted for approximately 4.3% of the Company’s total revenue compared with a contribution of approximately 2.7% in the year-ago period.
"Our station personnel did a great job of operating in a difficult environment and during the quarter our station portfolio exceeded the revenue performance of the overall industry. With over four decades in the radio broadcasting industry, BEASLEY has weathered uncertain times before and we believe radio’s ability to reach targeted demographic audiences while offering listeners localism and portability without subscription fees will prove to be advantages in overcoming the weak environment. Despite current market conditions, we’ve made important progress in key markets like MIAMI and PHILADELPHIA and have taken actions to address FT. MYERS and LAS VEGAS, all of which bodes well for the Company’s ability to quickly rebound from the advertising downturn. While we continue to invest in ongoing development of interactive support services for our radio stations, we have also taken steps to cut costs not vital to our sales and programming efforts. These actions are positioning BEASLEY with the right combination of resources to recapture momentum when radio advertising demand returns to more robust levels."