NAPLES — Beasley Broadcast Group reported profits rose 37% as the radio operator trimmed expenses in the second quarter, but revenues dropped because of advertising weakness in markets such as Fort Myers.
Beasley reported net income rose 37% to $3.9 million in the second quarter compared to the same quarter one year ago. Revenues fell 2.8% to $24.8 million in the same period. Beasley attributed the increased second-quarter earnings to lower interest expense and lower station operating expense.
Commenting on the lower revenues, Chairman and CEO George Beasley says in a statement: “Our second quarter revenue performance principally reflects overall industry weakness in the first month of the quarter, a revenue decline at our Fayetteville cluster partially related to lower levels of auto advertising and lower revenue in the Fort Myers market due to the fact that in the year ago period we hosted a concert.”
However, Beasley says the Naples-based company continues to improve operating margins as it manages expenses. The company also has been boosting the strength of its balance sheet by paying down debt.
“We ended the second quarter with our lowest leverage ratio in over 10 years and remain committed to using cash from operations to further lower debt and other initiatives which can enhance shareholder value,” Beasley says in the statement.
Beasley owns and operates 42 radio stations in 11 markets around the country. The company's stock is publicly traded (symbol: BBGI; recent price: $5.68).