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NAPLES — Beasley Broadcast Group, in its financial results from the first quarter, cited a weak advertising climate in Tampa-St. Petersburg and other markets where it operates.
Beasley reported $1.3 million in net income on revenues of $17.8 million in the first quarter ending March 31. That compares with net income of $682,872 on revenues of $9.6 million in the same quarter one year ago.
While the company's results were positive, Beasley says it is more accurate to view them on a pro-forma basis. On a pro-forma measure, the acquisition of 14 stations in late 2014 showed net revenue fell 10.3% in the first quarter and station operating income fell 12.2%. In December, Beasley completed a radio-station exchange with CBS Radio in which Beasley acquired 14 stations in the Tampa-St. Petersburg, Charlotte and Philadelphia markets. The Naples-based company owns and operates 53 stations in 12 large- and mid-size markets in the U.S.
“We continue to believe the pro forma presentation, which assumes the asset exchange occurred on January 1, 2014, better reflects the first quarter operating results,” says George Beasley, chairman and CEO, in a statement.
“The pro forma revenue decline is primarily attributable to overall market weakness in Charlotte and Tampa-St. Petersburg and softer ad sales at our Wilmington cluster during the first quarter, our reduction in spot units at the newly acquired stations and revenue in last year's first quarter in Charlotte and Tampa-St. Petersburg related to the CBS affiliation that did not recur due to the change in ownership,” Beasley adds in the statement. “Our Tampa-St. Petersburg and Charlotte clusters are highly competitive in their respective markets from the standpoint of revenue share."
Beasley says the company is making changes that will boost sales. “In our Tampa-St. Petersburg market cluster, we've taken a holistic approach with respect to format changes, on-air talent and adding new management for the market, operations and sales,” Beasley says. “Looking forward, we are focused on ensuring that our station clusters match or exceed their market's revenue performance while further strengthening our balance sheet.”
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