Tuesday, August 02, 2022
Beasley Broadcast Group (BBGI)
Growth Initiatives Providing Some Cushion
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, Noble Capital Markets, Inc.
Patrick McCann, 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 Q2 revenue of $64.8 million, slightly better than our estimate of $63.7 million, which was driven by strong Digital revenue growth, as well as expanding local advertising revenue. Adj. EBITDA of $6.99 million was in line with our expectation of $6.93 million.
Strong Digital Growth. Digital revenue grew 34.3% year-over-year to $10.7 million, accounting for 16.5% of total company revenue in the quarter. With the recent acquisition of a digital agency, the company has an attractive platform for enhanced Digital revenue growth. We believe Beasley is on track to achieve its target of Digital revenue accounting for 20% of total revenue by year-end.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.