Beasley Broadcast Group Inc [NASDAQ:BBGI] was a big winner in yesterday’s session and closed the day with gains of 37%. This came after the company released strong Q3 results that indicate that the company had quite a strong run in the quarter. The company reported that net revenues rose by 63.4% compared to Q2 of 2020.
Commenting on the results, the CEO Caroline Beasley stated that the company made a solid recovery in Q2 and that these gains extended all the way into Q3. She further stated that the results were an indicator of the moves that the company undertook to mitigate the effects of the pandemic including cutting on station costs, a drop in headcount, discount negotiations with landlords, and furloughs.
She also attributed it to a return of advertising in strategic aspects of the business while dealing with economic challenges, the quality of content that the company runs and how it serves the community. She further stated that the improvement was evident in the company’s SOI as recorded in Q3 of 2020.
The CEO also stated that all through Q3, the sales team pushed up monthly incremental revenue by 8%, 24%, and 22% in July, August, and September.
She also stated that the total net revenues for October increased, but the expectation is that revenues for November will drop slightly towards single digit levels. Nonetheless, the company expects revenues to grow sustainably in the foreseeable future.
The CEO stated due to the return of advertising in key categories and the political cycle, the company expects to keep generating good results from the money it has put into esports and other digital investments that have not been hit by the COVID-19 pandemic. It is partly due to these results that the company’s revenues in Q3 rose by 1.8% to revenues of $5 million.
The CEO also noted that they were looking forward to more positive results in the future. This has a lot to do with the company’s station leaders and team members who have worked hard to return the company to positive cash flow situation.
The company wants to keep growing cash flows by growing its ratings, revenue diversification, and providing customers with top quality services to its listeners, while further taking steps to increase operational efficiency to safeguard the company’s long-term success.
About Beasley Broadcast Group Inc
Beasley Broadcast Group Inc is a radio broadcasting company and runs radio stations across the country. It is based in Naples, Florida.