Beasley Broadcast Group (BBGI) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue was $60.4 million, down 4.8% year-over-year, mainly due to divestitures and softness in commercial audio advertising, partially offset by digital and political ad growth.

• Net loss narrowed to $0.3 million ($0.01 per diluted share) from $10.4 million ($0.35 per share) in Q2 2023, reflecting lower expenses and absence of prior year impairment charges.

• Adjusted EBITDA increased 11.4% year-over-year to $8.8 million, with margin improving to 14.5%, driven by expense management and digital revenue gains.

• Digital revenue grew 5.7% year-over-year (10.2% on a same-station basis) to $13.0 million, now 21.5%–22% of total revenue.

• Audio remains the core business, generating 78% of Q2 revenue, while digital contributed 22%, with digital revenue showing strong growth.

Financial highlights

• Q2 2024 net revenue: $60.4 million (down $3.0 million year-over-year); net loss: $0.3 million (vs. $10.4 million loss in Q2 2023).

• Adjusted EBITDA rose to $8.8 million from $7.9 million year-over-year, with margin improving to 14.5% from 12.5%.

• Operating income was $5.4 million in Q2 2024, compared to a $4.5 million loss in Q2 2023, due to reduced expenses and no impairment charges.

• Cash and cash equivalents increased to $33.3 million as of June 30, 2024, from $26.7 million at year-end 2023.

• Long-term debt stood at $264.9 million as of June 30, 2024, down from $287.0 million a year ago.

Outlook and guidance

• Digital revenue is on track to meet the full-year 2024 goal of 20–25% of total revenue.

• Management expects to achieve $10 million in annualized expense savings through ongoing cost initiatives.

• Political revenue is expected to continue benefiting results through year-end.

• Q3 pacings are down low to mid-single digits, with July slightly up and August/September pacing down.

• Board has suspended quarterly dividends; future payments depend on financial conditions and debt covenants.