Thursday, May 09, 2024
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.
Mixed Q1 results. The company reported Q1 revenue of $54.4 million, in line with our estimate of $55.1 million. Adj. EBITDA in the quarter was $0.7 million, which was below our estimate of $1.4 million. While operating results were mixed in the quarter, the company is focused on cost reductions. Additionally, national advertising was up 1.1% in Q1, which is a development we view favorably.
Q2 pacings softer, but…Management indicated that Q2 advertising pacings are down in the low single digits, a little more than our modest 2.1 % decline estimate. Notably, the company largely will mitigate the revenue variance with cost cutting initiatives, which is expected to save $6.8 million in costs this year.
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