Saga munications(US:SGA)2025-05-08 16:02Financial Data and Key Metrics Changes - For the quarter ended March 31, 2025, net revenue decreased by 4.3% to $24.2 million compared to $25.3 million last year [12] - Station operating expense decreased by 2.2% to $22 million for the three-month period [13] - The company reported a net loss of $1.6 million for the quarter, approximately the same as last year [13] - Total interactive revenue was up 14% with a 51% profit margin [15] Business Line Data and Key Metrics Changes - The top three largest advertising verticals were home improvement, professional services, and automotive [9] - The top three fastest growing advertising verticals were home improvement, health care, and real estate [9] - Digital ad revenue for 2025 reached $5.3 million as of May 8, 2025, compared to $5 million for all of 2024 [10] - The online news initiative revenue almost doubled from $285,000 in Q1 2024 to $562,000 in Q1 2025 [15] Market Data and Key Metrics Changes - The company experienced four straight months of significant growth in digital ad revenue from February through May [11] - April showed a decline in pacing down high single digits, but May showed improvement to down low single digits [16] Company Strategy and Development Direction - The company is focused on a digital strategy that blends radio, search, and display advertising [8] - Plans to use proceeds from potential sales of non-core assets for stock buybacks as part of capital allocation [18] - The company aims to capture 5% of available digital dollars in its markets over the next 18 to 24 months to potentially double gross total annual revenue [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the potential ripple effect of tariffs on advertising spend but noted no significant impact observed yet [33] - The company expects to see improvement in pacing for the second quarter, with interactive pacing up 18.4% [16] - The management expressed confidence in the digital strategy and its ability to meet consumer needs in a fragmented advertising marketplace [21][24] Other Important Information - The company paid a quarterly dividend of $0.25 per share on March 7, 2025, totaling approximately $1.6 million [17] - The 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 tariffs? - Management indicated there may be a ripple effect from tariffs but has not seen significant changes yet [33] Question: What are the trends in digital performance for the quarter and guidance for the second quarter? - Management noted that digital performance was addressed earlier and trends are improving for the second quarter [35] Question: Any insights on advertising categories that weakened from Q1 to Q2? - Management stated that main categories are performing well and showing positive growth for the second quarter [36]