Beasley Net Revenue Down 2.4% in Q1. Stating that the dip in net revenue comes primarily from “lower advertising revenue at the company’s Miami-Fort Lauderdale and Philadelphia market clusters,” Beasley Broadcast Group announces a Q1 figure down 2.4% on revenue of $24.2 million. But the taxman also bit Beasley as the company reports that a “$0.8 million, or 40.2% year-over-year reduction in first quarter 2014 interest expense related to lower borrowing costs and reduced amounts outstanding, was more than offset by a $1.3 million, or 128.8%, rise in income tax expense primarily due to a change to the company’s federal income tax rate. In addition, the tax rate in the comparable year ago period benefited from a change to the company’s effective state tax rate. As a result, net income and net income per diluted share for the 2014 first quarter of $0.7 million and $0.03, respectively, compared with $2.4 million, and $0.11, respectively, in the comparable year ago period.” Beasley chairman and CEO Geroge Beasley comments, “The first quarter decline in net revenue reflects several factors that primarily impacted our three largest markets, including the severe winter weather which had a negative effect on our operations in the Northeast. Overall, for our five markets that report to Miller Kaplan – which represent approximately 77% of total first quarter revenue – Beasley station cluster revenue declined by 4.3%, while the total revenue for all reporting radio stations in these markets decreased by 0.3% for the quarter. In Philadelphia, our cluster underperformed the market for the first time since mid-2012 as business was significantly impacted by the severe winter weather that pressured billings, particularly among our local customers, and caused our stations to close for the equivalent of approximately three business weeks during the first quarter. In Miami, the first quarter underperformance largely relates to the revenue decline at our AM sports talk station following the departure of a popular afternoon host (Jorge Sedano). On April 1, we addressed this situation directly by re-launching our afternoon drive programming with the addition of another highly rated Miami sports talk show host from a direct competitor in the market (Marc Hochman). Notwithstanding the challenges endured in the first quarter, our ratings and market position in both Philadelphia and Miami remain strong. A final factor which negatively impacted first quarter revenue results was the completion of comprehensive training for our sales team regarding our new digital and NTR initiatives. While this training took our sales teams away from customers for several days, we believe it was essential to drive growth in these areas of our business going forward. Our planned investments in sales and programming and the expansion of our digital offerings, combined with the revenue decline, led to a 12.2% decline in first quarter 2014 SOI compared to year-ago levels.”
Journal Radio Division Revenue Down 4%. While the company as a whole sees revenue climb 3.7% on the strength of TV and retrans, the radio division of Journal Communications was down 4% on revenue of $15.2 million. The company reports that “local advertising revenue, excluding political, decreased 3.2%, primarily due to a decrease in restaurant and financial advertising. Digital revenue, which is reported in local revenue, was $0.6 million, up 7.8%. National advertising revenue, excluding political, decreased 18.0%, primarily due to a decrease in automotive and financial advertising. Total revenue, excluding political revenue, was $15.1 million, down 4.2%. Operating earnings from radio were $2.1 million compared to $2.4 million, a decrease of 11.9%. Radio operating expenses decreased 2.6%, or 0.8% excluding a $0.2 million non-cash building impairment charge recorded in 2013, primarily due to lower programming rights fees.”
Lew Dickey Sounds Pleased with Cumulus Media’s Progress. During yesterday’s investor’s conference call on 2014 first quarter numbers, CEO Lew Dickey explained that Cumulus Media is well-positioned in the broadcast arena but is also heading in the desired direction of broadening its revenue streams and reaching beyond “just the advertiser.” Dickey said, “We’ve now become a very diverse national audio advertising and content platform. Our base is fueled by our strong core broadcast advertising category, anchored by our 460 owned-and-operated stations and again, amplified by now more than 10,000 broadcast radio affiliates throughout the U.S. Moreover, we are developing an emerging growth stream in digital advertising that is gaining real traction to our audio through our Rdio digital audio platform. Licensing also provides the company with a significant second stream of non-advertising-based revenue and should continue to grow nicely as we develop ‘NASH’ and other original content into multimedia brands with multiple revenue streams. Additionally, our content initiatives will provide us with new revenue streams originating from monetizing the consumer, as opposed to just the advertiser, through subscription services.” Thanks to Seeking Alpha for the transcript, members can check out the entire conference call here.
DirecTV Cancels Artie Lange Show. With three months left on his contract with DirecTV, Artie Lange’s radio talk show is canceled. Lange told listeners to his Monday evening (4/28) show that it would be his last for DirecTV. The program was initially co-hosted by both Lange and fellow comic Nick DiPaolo but DiPaolo left the show last year. During his good-bye to listeners and viewers, Lange said DirecTV was very good to him and the parting, though unfortunate, was amicable. The program was simulcast on DirecTV’s Audience channel in addition to being syndicated on the radio.
Barry Farber’s Language Club Celebrates 30 Years. Talk radio legend Barry Farber’s “Language Club” celebrates its 30-year anniversary with a gathering on Monday, May 28, in New York City. Farber, who founded the club, will also be honored at the celebration, that begins at 6:00 pm at My Place Restaurant, 242 East 79th Street in Manhattan. Farber is currently syndicated nationally via CRN Digital Talk Radio. His program airs weeknights at 8:00 p.m. ET. A press release from CRN states, “Farber, who has been on the airwaves since the mid-1950s, nearly failed Latin in 9th grade. Since then, he has studied 28 languages. He created the Language Club so students and speakers of foreign languages could congregate in a pleasant, social environment and enjoy conversing with each other.” He is also the author of several books, including How to Learn Any Language – Quickly, Easily, Inexpensively, Enjoyably and On Your Own. Club members periodically meet for dinner and conversation at ethnic restaurants throughout New York City. Some members give basic language lessons to each other. CRN president and CEO Michael Horn says, “All of us have so much to learn from Barry Farber. Usually, it’s his takes on politics and life. But I hear he also gives good courses in Dutch, Mandarin, and Hebrew.”
Evans Broadcast Company Stations to Observe D-Day Anniversary Live from Normandy. This June 6, news/talk KKFT Reno, “99.1 FM Talk’ and sister country simulcast KCMY and K273AF “Cowboy Country 102.5” will broadcast live from Normandy in France to commemorate the 70th anniversary of D-Day. Evans Broadcast president and CEO Jerry Evans tells TALKERS this year will be the last recognized by the Normandy Veteran’s Association.
Six Receive NY Hall Call. The 2014 New York State Broadcasters Association‘s Hall of Fame class includes capital region/Syracuse broadcaster John Cooper; Syracuse TV reporter Nancy Duffy; WFAN, New York sports talk host Mike Francesa; renowned sportscaster Marty Glickman; Buffalo television manager Chris Musial; and New York City TV journalist Marvin Scott. Cooper has been with Clear Channel since 2000, and is currently regional program manager for the company’s stations in Albany, Poughkeepsie, and Sussex, New Jersey. Duffy received the Syracuse Press Club‘s Lifetime Achievement Award; she passed away in 2006. All-American football player Marty Glickman had brief careers in professional football and basketball. He was the NBA‘s first TV announcer and the first broadcaster for the New York Nets before the ABA – NBA merger. In the 1960s, Glickman was the sports director of WCBS-AM, New York; he is a member of the Curt Gowdy wing of the Basketball Hall of Fame. Glickman – the voice of the NY football Giants for 23 years and the NY Jets for 11 years – was 83 years old when he died in 2001. While Musial was news director and president/general manager of Buffalo’s WIVB-TV, it was the highest-overall rated television station in the country from sign-on to sign-off. WPIX-TV, New York senior correspondent Marvin Scott is the recipient of seven Emmy awards. Before joining WPIX, he held positions as anchor, correspondent, and producer at CNN, Mutual Broadcasting System, and New York City’s WABC-TV. Regarding his selection to the Hall, Francesa comments, “I am humbled and excited to be recognized by the New York State Broadcasters Association; it is a great honor. Anything with ‘New York’ attached to it means all the more to me.” The afternoon drive (1:00 pm – 6:30 pm) talent recently agreed to a long-term contract extension with WFAN. CBS Radio president and chief executive officer Dan Mason states, “Mike has earned his place in radio history as a great broadcaster. We are thrilled to continue our relationship with sports radio’s most celebrated host.” From 1989 to 2008, Francesa co-hosted the “Mike & Mad Dog Show” with Chris “Mad Dog” Russo and has been overseeing “Mike’s On” since 2008. Francesa occupies the #1 position on TALKERS’ 2013 “Heavy Hundred” of Sports Talk Radio. The June 13 induction ceremony will take place during the Association’s summer conference in New York City.
Donald Sterling Case, Tepid Economy Data, John Kerry Israel ‘Apartheid’ Comment, Russian Aggression in Ukraine, and Chicago Gun Violence Epidemic Among Top News/Talk Stories Yesterday (4/29). The lifetime ban and fine levied against Los Angeles Clippers owner Donald Sterling in the wake of his racist comments recorded by a former mistress; weak economic news and the impact on the Obama Administration’s policies; the aftermath of Secretary of State John Kerry’s statement that Israel is in danger of becoming an apartheid state; Vladimir Putin’s continued military aggression in Ukraine; and the huge uptick in gun deaths in Chicago and the call for more gun laws were some of the most-talked-about stories on news/talk radio yesterday, according to ongoing research from TALKERS.