Beasley Broadcast Group, Inc. (NASDAQ:BBGI) Q3 2022 Earnings Conference Call November 7, 2022 10:00 AM ET

Company Participants

Barbara Beasley - Chairman & CEO

Marie Tedesco - CFO

Conference Call Participants

Operator

Good morning, and welcome to Beasley Broadcast Group's Third Quarter 2022 Conference Call. Before proceeding, I would like to emphasize that today's conference call and webcast will contain forward-looking statements about our future performance and results of operations that involve risks and uncertainties described in the Risk Factors section of our most recent annual reports on Form 10-K as supplemented by our quarterly reports on Form 10-Q.

Today's webcast will also contain a discussion of certain non-GAAP financial measures within the meaning of Item 10 of Regulation S-K. A reconciliation of these non-GAAP measures with their most directly comparable financial measures calculated and presented in accordance with GAAP can be found in this morning's news announcement and on the company's website.

I would also remind listeners that following its completion, a replay of today's call can be accessed for 5 days on the company's website, www.bbgi.com. You can also find a copy of today's press release on the Investors or Press Room sections of the site. At this time, I'd like to turn the conference over to your host, Beasley Broadcast Group's CEO, Caroline Beasley. Please go ahead.

Barbara Beasley

Thank you, and good morning, everyone. Thank you for joining us to review our third quarter results. Marie Tedesco, our CFO, is with me on the call this morning. So I'm happy to share that our third quarter results continued to show year-over-year improvement in both revenue and SOI. Overall, net revenue increased 1.5% year-over-year, exceeding the guidance we provided when we reported Q2 of a projected flat to slightly down quarter.

Now breaking that down, over-the-air local spot revenue increased 1% or by $275,000 while national revenue declined 8.7% or by $1.2 million, and that includes the benefit of $1.9 million in political. Impressively, third quarter digital revenue grew 23.2% year-over-year while audio revenue decreased 1.9%. Similar to previous quarters, new business initiatives, sports betting, political and a $1.9 million year-over-year increase in digital revenue were the primary drivers that offset the continued national revenue decline.

Now to dig into that a bit, national, excluding political, was down 20% or $2.7 million for the quarter, and it now accounts for about 15% of our total revenue. This trend is consistent with the past several quarters where we've been successful in offsetting declines in national with higher local and, more notably, digital revenue.