Boston Omaha Corporation Reports 8.5% Revenue Growth in Q1 Fiscal 2025

Boston Omaha Corporation reported its financial results for the first quarter of fiscal 2025, revealing total revenues of $27.73 million, an increase of 8.5% from $25.55 million in the same period last year. The growth was driven by a 6.6% rise in broadband services revenue, which reached $10.32 million, and a significant 39% increase in premiums earned from its insurance subsidiary, totaling $5.56 million. Billboard rentals remained stable, contributing $10.76 million, while investment and other income decreased to $502,823 from $666,895.

The company's net loss attributable to common stockholders narrowed to $669,285, or $0.02 per share, compared to a loss of $2.81 million, or $0.09 per share, in the prior year. This improvement was attributed to better operational performance in the broadband segment and reduced expenses in the asset management business. Total costs and expenses rose to $28.53 million, up from $27.61 million, but as a percentage of total revenues, they decreased from 108.1% to 102.9%, indicating improved efficiency.

Operationally, Boston Omaha's broadband customer base grew to approximately 47,900, with 17,100 fiber subscribers. The company also reported a total of 4,000 billboards in operation, reflecting its ongoing strategy to expand its outdoor advertising footprint. The insurance segment saw a notable increase in production, contributing to the rise in earned premiums. However, the cost of insurance revenues increased significantly, primarily due to higher claims and loss adjustment expenses.

In terms of strategic developments, Boston Omaha has been actively managing its investments, including a significant stake in Sky Harbour Group Corporation. The company reported a dilution loss of approximately $2.2 million related to its equity interest in Sky Harbour. Additionally, Boston Omaha is winding down its asset management operations, focusing on cost-cutting measures and returning capital to fund partners. The company has also initiated a share repurchase program, aiming to buy back up to $20 million of its Class A common stock.

Looking ahead, Boston Omaha plans to continue its growth trajectory by pursuing acquisitions in its core business areas, including billboard advertising and broadband services. The company maintains a strong liquidity position with approximately $22.3 million in cash and $19.3 million in short-term U.S. Treasury securities as of March 31, 2025. Management expressed confidence in its ability to finance future growth through a combination of cash flow, debt, and potential equity offerings, while remaining vigilant about market conditions and operational efficiencies.