The Beasley Broadcast Group Inc., a radio station operator based in Naples, reported Friday that it managed to increase profits in the second quarter even as advertising revenue declined.
Beasley reported net income of $3 million, or 13 cents a share, in the quarter ended June 30, up from $2.4 million, or 10 cents a share, in the same period a year ago.
Beasley operates 44 stations, 28 FM and 16 AM, in 11 large- and mid-size markets in the United States. The company owns four FMs and one AM in the Naples-Fort Myers market including: Sunny 106 WJPT-FM, B103.9 WXKB-FM, 96 K-Rock WRXK-FM, ESPN Radio 99.3 WWCN-FM and 770 AM ESPN Deportes WJBX-AM.
Additionally, The Link, a modern adult contemporary format, can be heard through four FM translators at 96.5 and 98.1 in Lee County and 101.5 and 105.1 in Collier County.
The local stations were among four clusters of stations that reported revenue gains in the quarter, said Carolyn Beasley, chief financial officer. The other seven clusters reported revenue drops.
Lower net revenue in the 2014 second quarter was partially offset by a $400,000 reduction in station operating expenses.
Advertising revenue is expected to get a lift in the second half of the year from political advertising, she said.
Despite Q2 industry ad spending in our largest markets, the radio ad environment generally remains healthy, Beasley said.
The most recent net income results were impacted by a pre-tax $1 million fee incurred in connection with debt pre-payment and a non-cash pre-tax charge of $1.3 million for loss on extinguishment of long-term debt incurred in connection with an amended credit agreement and debt pre-payment, the company said.
The company had $25.9 million in revenue for the quarter, down 3.6 percent from $26.9 million in 2013s second quarter.
The $1 million decline in revenue primarily reflects lower advertising revenue at the companys Philadelphia, Wilmington and Greenville-New Bern-Jacksonville, NC, market clusters, the company said.
The decline in net revenue was partially offset by $700,000 in other revenue, resulting from an agreement with an electronics company and its affiliate concerning the use of Beasleys and the other companys respective logos.