67 WALL STREET, New York - November 12, 2012 - The Wall Street Transcript has just published its Entertainment, Toys and Games Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Cable Subscription Rates - International Paid Television Growth - Digital Advertisement Trends - Mobile Device Gaming Prospects - Content Quality
Companies include: Beasley Broadcast Group Inc. (BBGI) and many others.
In the following excerpt from the Entertainment, Toys and Games Report, the Executive Vice President and CFO of the Beasley Broadcast Group discusses the outlook for her company for investors:
TWST: Please give us a background summary on the Beasley Broadcast Group.
Ms. Beasley: Beasley is a pure-play radio broadcaster that owns or operates 44 stations in 11 large and midsize markets. We offer a broad range of programming formats, and in doing so, we address highly diverse demographic audiences. In fact, our combined reach is about 6.4 million people on a weekly basis. My dad started the company in 1961, when he built his first radio station in North Carolina. Our IPO was in 2000, and we're traded on Nasdaq under BBGI.
Given our company philosophy and the success we've had over the years in adapting new technologies, and reflecting both the current industry landscape and the advent of new media that are targeting radio dollars, we're now offering 360 marketing solutions. These allow us to reach our listener base anywhere and anytime, online, over the air and on their mobile devices. In doing so, we also strengthen our value proposition with advertisers.
With respect to Wall Street, the view of radio is that the industry's rate of growth follows GDP, and given the slowing economy and the competitive landscape, we've been growing just at or maybe slightly less than GDP over the past several years. In essence, Wall Street views radio as "old media" and questions how we can compete with new media. That is a vast misperception, but I understand it, as I think our industry has done a poor job of promoting itself. We need to improve on this front if we are to garner valuations that acknowledge our stable - and in our case, growing - cash flows. Any investor or Wall Street analyst who takes the time to go to Main Street, U.S.A., would quickly recognize how vibrant the radio industry really is.
TWST: What were the company's revenues and its earnings in the latest quarter reported?
Ms. Beasley: We report based on revenue and station operating income, SOI, which is a measurement of cash flow that is commonly used in the broadcast industry. So our actual revenue in the Sept. 30, 2012, quarter was $24.7 million, a rise of 3.1% from the year-ago period, and our SOI was about $9 million or about 9% ahead of 3Q 2011. Reflecting the operating leverage in our model, third-quarter SOI margins rose to 36.3% on an actual basis from 34.3% in the same quarter last year.
TWST: Three major channels for Beasley today seem to be content, community and distribution. How do you see those growing and perhaps cross-selling as the next two to three years go by?
Ms. Beasley: First, we have the digital offerings that I referred to, our 360 offerings. So we're able to provide our advertisers these solutions every day. And, as you said, the other important thing about radio is content, which is at the heart of our organization. We have tremendous local content, and we are ensuring that our distribution channels make that content available anytime, anywhere.
TWST: How responsive are listeners to mobile features and capabilities? How are they responding to Beasley's iRadio app?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.