Thursday, April 27, 2023
Beasley Broadcast Group, Inc. owns and operates 61 stations (47 FM and 14 AM) in 15 large- and mid-size markets in the United States. Approximately 20 million consumers listen to the Company’s radio stations weekly over-the-air, online and on smartphones and tablets, and millions regularly engage with the Company’s brands and personalities through digital platforms such as Facebook, Twitter, text messaging, digital and web applications and email. The Overwatch League’s Houston Outlaws esports team is a wholly owned subsidiary. The Company also owns BeasleyXP, a national esports content hub, and AXLR-R8, a Rocket League Championship Series team, in its esports portfolio. For more information, please visit www.bbgi.com.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Solid Q1 results. The company reported revenue of $57.8 million and adj. EBITDA of $2.8 million, beating our upwardly revised estimates by 1.8% and 6.3%, respectively. The better than expected results were driven by strong digital revenue of $10 million, an increase of 27% from the prior year period, and $4.3 million in sports betting advertising.
Robust digital growth. From Q1 2019 to Q1 2023, the company grew digital revenue at a CAGR of 30% and now Digital represents 17% of total company revenue. Given the anticipated strong digital revenue growth, management appears to be on target for Digital to be 20% to 30% of total revenue for full year 2023, and 40% in 2024.
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