Beasley sales teams drove monthly sequential revenue improvements with July up 8%, August up 24% over July, and September up by 22% over August.
Shares of Beasley Broadcast Group, Inc. (BBGI) are soaring with a high volume making it the highest traded stock for the day so far. The stock spiked in the premarket on the announcement of Beasley reporting strong third quarter results from prior quarter.
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Beasley shares surged more than 80% in the premarket on Tuesday with the stock kicking off the day as high as $1.89 compared to the previous close of $1.24. As we write this at 11:05 A.M. EDT, BBGI was trading at $2.01 surging by 61%. The trading volume is higher today almost up to 95 million.
The company has also announced the earnings call that is scheduled at 11:00 A.M. EDT today. The multi-platform media company will address the investors on its financial performance for the three months ended September 30, 2020.
Third Quarter Highlights
The company made excessive strategic improvements while reducing station operating expenses, furloughs, headcount reductions, and negotiated discounts with its service providers and partners who helped Beasley to rebound during the third quarter.
Beasley reported revenue of almost $49.6 million, which decreased compared to the last year’s revenue of $66.1. The decline in commercial advertising revenue was due to the impact of the global pandemic. But the company recovered from the second quarter as the revenue grew 63.4% from Q2.
Beasley Broadcast continuously made improvements during the three months of Q3 as the sales team drove monthly sequential revenue improvements with July up 8% over June, August up 24% over July, and September rising 22% over August.
The operating income was $0.8 million for the third quarter compared to $9.4 million in Q3 2019. The decrease in operating income reflects a decline in Station Operating Income, higher depreciation and amortization, and lower corporate expenses.
The net loss was almost $2.7 million compared to a net income of $3 million for the same period of last year.
The digital network saw significant growth with the resumption of advertising in key categories and the benefit of the political cycle. The digital revenue grew 1.8% to $5 million during the third quarter. Beasley’s new esports operations generated $500,000 in revenue during the three months period. The digital revenue accounted for 10.1% of the total revenue of Q3.
Beasley Broadcast Group, Inc. (BBGI) has shown promising signs and stays optimistic about its future growth. To further improve the performance, the company expects to reduce its operating cost by approximately $32 million through the year-end.
Beasley will continue to make fundamental changes as per the requirements of the situation and enhance its process and efficiencies across the organization.