BEASLEY BROADCAST GROUP INC Q1 FY2025 earnings call

• Priorities for the year include accelerating digital growth, improving revenue quality, and executing with discipline.
• In Q1, preserved EBITDA profitability through efficient cost management. Digital segment operating income grew meaningfully. Took proactive steps to manage economic headwinds, including cost reduction plan and realigning resources.
• Sports is a high-return vertical core to strategy, with flagship relationships with major professional teams and universities, and a new partnership with University of Michigan Athletics.
• Digital segment total revenue grew 6.4% year-over-year on same station basis, digital segment operating income increased $1.3 million, and digital segment operating margin expanded significantly. Launched initiatives to optimize product portfolio and backend infrastructure, including consolidating streaming offerings into audio plus.

Total net revenue for Q1 was $48.9 million. Consumer services was the largest revenue category, accounting for 30% of total revenue, with legal up nearly 5% and HVAC up 12% year-over-year. Digital revenue accounted for 22% of total revenue, and digital segment operating income grew from $100,000 in Q1 '24 to $1.9 million in Q1 2025. Automotive category revenue declined slightly, with foreign auto up 7.5% and domestic auto down 5%. National revenue excluding political declined 12.7%, local agency revenue declined 19.9%, while local direct revenue increased 0.3% year-over-year, representing 55% of total local business.

• Q2 revenue is pacing down 10% primarily due to macroeconomic pressure. However, focused on cost management and strategic investments in digital content and technology to drive long-term shareholder value.
• Committed to execution, delivering for clients, growing audience, optimizing digital portfolio, and unlocking operating leverage.

• Broader economic headwinds affecting advertising demand. Auto sector volatility with domestic softness and uncertainty from potential tariffs on imported vehicles. Macro environment causing caution in agency channels and new business declines.

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: At this point, saw full amount of cost reductions implemented in 2024 in Q1. Made $1.3 million in incremental cuts in Q1, with roughly $200,000 showing up in numbers, and balance of impact to be seen in Q2. Continue to evaluate cost structure relative to revenue performance.

Q: Is National feeling stronger or weaker in 2025? 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: National is weaker this year than in 2024. Boston was down consistent with overall segment declines and pacing in line with trend this quarter. Philly 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: Earlier in the year there were multiple discussions, but due to economic uncertainty from tariffs, some discussions have softened. However, always open to evaluating swaps if beneficial to the company.