Saga munications(US:SGA)2025-05-08 16:00Financial Data and Key Metrics Changes - For Q1 2025, net revenue decreased by 4.3% to $24.2 million compared to $25.3 million in the previous year [11] - Station operating expenses decreased by 2.2% to $22 million for the quarter, resulting in an operating loss of $2.3 million, slightly improved from a loss of $2.4 million last year [12] - The net loss for the quarter was $1.6 million, approximately the same as last year [12] - Total interactive revenue increased by 14% with a profit margin of 51% [14] Business Line Data and Key Metrics Changes - The top three largest advertising verticals were home improvement, professional services, and automotive, with automotive returning to the top three [9] - The fastest growing advertising verticals included home improvement, healthcare, and real estate [9] - Digital ad revenue for 2025 reached $5.3 million by May 8, already surpassing the total of $5 million for all of 2024 [9][10] Market Data and Key Metrics Changes - The company has seen four consecutive months of significant growth in digital ad revenue from February to May 2025, with May expected to be the largest month in digital ad revenue in Saga's history [10] - The company anticipates that the annual corporate general and administrative expense will be approximately $12 million for 2025, down from $12.6 million in 2024 [19] Company Strategy and Development Direction - Saga Communications is focusing on a digital strategy that blends radio, search, and display advertising to enhance customer engagement and drive sales [7][21] - The company plans to use proceeds from potential sales of non-core assets for stock buybacks as part of its capital allocation strategy [5][17] - The company aims to capture 5% of available digital dollars in its markets over the next 18 to 24 months to potentially double its gross total annual revenue [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the potential ripple effects of tariff concerns on advertising spend but noted no significant impact observed yet [34] - The company expects to see improvement in advertising trends as the year progresses, with interactive pacing for the second quarter up 18.4% [15] - Management remains optimistic about the digital strategy's potential to disrupt the advertising marketplace and meet unmet needs of advertisers [22][24] Other Important Information - The company paid a quarterly dividend of $0.25 per share on March 7, 2025, totaling approximately $1.6 million [16] - Saga's balance sheet reflects $27 million in cash and short-term investments as of March 31, 2025 [18] Q&A Session Summary Question: Has there been an impact on advertising spend related to tariff concerns? - Management indicated that while there may be a ripple effect, no significant impact has been observed yet [34][36] Question: What are the trends in digital performance for the quarter and guidance for the second quarter? - Management addressed the performance in the quarter and noted that trends are improving for the second quarter [37] Question: Any insights on advertising categories that weakened from the first quarter to the second quarter? - Management highlighted that main categories are performing well and showing positive growth for the second quarter [38]