Saga Communications (NasdaqGM:SGA) Q3 2025 Earnings Call November 06, 2025 11:00 AM ET Speaker0Thank you, Matt, and thank you to your dulcet tones. And, thank you to everyone who has taken the time to join Saga's twenty twenty five q three earnings call. We appreciate your continued interest and support and your participation in Saga Communications, what we believe is the best media company on the planet. I'm here with Sam Bush, and, today represents twenty eight years of Sam doing Saga earnings calls. So, ...

Financial Data and Key Metrics Changes - For Q3 2025, net revenue decreased by $528,000, or 1.8%, to $28.2 million compared to $28.7 million last year [2] - Station operating expense increased by $2 million to $24.7 million for the three-month period, primarily due to an industry-wide settlement with music licensing organizations [2][3] - The company reported an operating loss of $626,000 for the quarter, which would have been an operating income of $1.5 million without the settlement [3] - Gross broadcast revenue decreased by $1.8 million, or 6.8%, while gross interactive revenue increased by $1.1 million, or 32.6% [4] - For the nine-month period ended September 30, 2025, net revenue decreased by $3.1 million, or 3.7%, to $80.6 million compared to $83.7 million last year [5] Business Line Data and Key Metrics Changes - Station operating income for Q3 2025 was reported at $3.5 million, which would have been $5.6 million without the settlement [3][4] - Total interactive revenue increased by 32.6% for the quarter and 17.1% for the nine-month period, with a 54% profit margin [7] - Political revenue for Q3 2025 was $73,000, down from $677,000 in the same period last year [4] Market Data and Key Metrics Changes - Current pacing for the fourth quarter is down approximately 11%, including political revenue, and 4.7% when excluding political [7] - Local pacing remains consistent, while digital pacing is up 32% for the quarter [24] Company Strategy and Development Direction - The company is focused on a blended digital strategy aiming to double gross revenue, primarily from digital sources, within 18-24 months [12] - Strategic investments in R&D and resources are being made to support this digital transformation [12] - The company plans to utilize proceeds from the sale of telecommunications towers for stock buybacks and to maintain a robust quarterly dividend strategy [9][13] Management's Comments on Operating Environment and Future Outlook - Management indicated that the national advertising market is weak, impacting forward pacing, while local and digital markets show different trends [24] - The company believes the decline in spot radio is more related to macroeconomic factors rather than interest rate cuts [25] - Management expressed confidence in the digital transformation efforts, noting measurable returns from local direct advertisers [19][21] Other Important Information - The company paid a quarterly dividend of $0.25 per share, totaling approximately $1.6 million [8] - As of September 30, 2025, the balance sheet reflected $26.3 million in cash and short-term investments [10] Q&A Session Summary Question: Can you provide insights on market tone and pacing into the upcoming quarter? - Management noted that national advertising is weak, local pacing is consistent, and digital pacing is up 32% for the quarter [24] Question: Why is there a lack of concrete buyback plans post-tower sale? - Management explained complexities related to the tower sale and real estate transfer issues, which delayed clarity on final sale proceeds [27][29]

Saga Communications (SGA) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of $0.21. This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -138.10%. A quarter ago, it was expected that this broadcasting company would post earnings of $0.19 per share when it actually produced earnings of $0.18, delivering a surprise of -5.26%.Over the last four quarters, the compa ...