Beasley swings to Q2 profit on debt restructuring gain; revenue falls
BBGI•Q2 profit driven by debt restructuring gain
Beasley Broadcast Group swung to a second-quarter profit as it reduced debt by $95 million, resulting in a significant non-cash gain.
The company reported Q2 net income of $84.30 million and diluted EPS of $45.95, compared with the consensus estimate of -$1.32.
Costs decline and outlook remains focused on growth
Adjusted EBITDA for the quarter rose year over year, reflecting cost reduction initiatives. Operating expenses declined 13.2% year over year due to cost reduction initiatives and disciplined expense management.
The company said its strategy remains focused on sustainable revenue growth and EBITDA expansion, while noting that the broader advertising environment remains dynamic.
Revenue falls amid traditional advertising weakness
U.S. radio station operator revenue fell 17% year over year in the quarter amid weakness in traditional advertising.
Beasley said the decline was due to continued weakness in traditional national and local agency advertising. Same-station digital revenue rose 7.1%, and local direct spot revenues stabilized, partially offsetting the weakness in traditional ads.
