Friday, August 04, 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 Q2 results. The company reported revenue of $63.5 million, in-line with our estimate of $63.7 million. Adj. EBITDA of $7.7 million, beat our estimate of $6.5 million by 18.2%. Notably, the quarter was driven by strong digital revenue growth of 14.8% and cash flow was supported by meaningful cost reductions and permanently reduced headcount.
Strong digital growth. The bulk of digital revenue growth in the quarter came from high margin content creation on the company’s owned and operated platforms. Importantly, Q2 digital accounted for 19.4% of total revenue, only slightly below management’s target of 20% to 30% for full year 2023.
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