Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Digital revenue accounted for 22% of total revenue, with digital segment operating income growing significantly from $100,000 in Q1 '24 to $1.9 million in Q1 '25.
- The company successfully executed cost reduction plans, resulting in total operating expenses decreasing by nearly $4 million or 8.1% compared to the prior year.
- Beasley Broadcast Group Inc (BBGI, Financial) expanded its sports vertical with a new flagship agreement with University of Michigan Athletics, enhancing its omnichannel sports strategy.
- Local direct revenue increased by 0.3% year over year, now representing 55% of total local business, showcasing the resilience of direct advertiser relationships.
- Adjusted EBITDA increased by 28% from $0.9 million in the prior year period to $1.1 million, reflecting the benefits of strategic cost initiatives and disciplined operational execution.
Negative Points
- Total net revenue for the first quarter was $48.9 million, down 10.1% on an as-reported basis, indicating a challenging revenue environment.
- National revenue, excluding political, declined 12.7%, driven by a broad pullback across all verticals and continued softness in categories such as home improvement and healthcare.
- Operating income for the first quarter of 2025 was a loss of $2 million compared to a loss of $1.1 million in the prior year period, primarily due to a $5.5 million year-over-year reduction in net revenue.
- Local agency revenue declined 19.9% year over year, with all markets experiencing some level of contraction, reflecting heightened macroeconomic caution.
- Revenue is currently pacing down 10% in Q2, primarily driven by continued macroeconomic pressure in select categories, indicating ongoing challenges.
Q & A Highlights
Q: Could you please provide an update on the current status of the cost savings initiatives? Specifically, how much of the projected savings have been realized to date and what additional impact is expected to be reflected in the 2025 financials?
A: Lauren Burrows Coleman, Chief Financial Officer: We have implemented the full amount of cost reductions planned for 2024 in Q1. Additionally, we made $1.3 million in incremental cuts in Q1, with approximately $200,000 reflected in the numbers. The remaining impact will be seen in Q2. We continue to evaluate our cost structure relative to revenue performance and have made further cuts quarter-to-date.
Q: Is National feeling stronger or weaker in 2024? I see that National was 14% of revenue in Q1. How much was National down year over year? How is National performing in Philadelphia and Boston?
A: Lauren Burrows Coleman, Chief Financial Officer: National is weaker this year compared to 2024. Boston's performance was consistent with overall declines in the segment, pacing in line with this trend. However, Philadelphia and New Jersey were up double digits year over year in Q1 and continue to pace positively in Q2.
Q: Has there been any increase in M&A discussions given potential regulatory loosening? Do you see an opportunity for swaps?
A: Caroline Beasley, Chief Executive Officer: Earlier in the year, there were multiple discussions regarding M&A. However, due to economic uncertainty from tariffs, these discussions have softened. We remain open to evaluating swaps if they are beneficial to the company.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
