Saga munications(US:SGA)2025-08-07 16:00Financial Data and Key Metrics Changes - For Q2 2025, net revenue decreased by $1.5 million or 5% to $28.2 million compared to $29.7 million last year [16] - Station operating expense decreased by $1.1 million or 4.6% to $22.2 million for the quarter [16] - Operating income for the quarter was $1.4 million compared to $2.1 million last year [16] - Net income for the quarter was $1.1 million compared to $2.5 million for the same period last year [17] - For the six-month period, net revenue decreased by $2.6 million or 4.7% to $52.4 million compared to $55 million last year [19] - The company reported a net loss of $447,000 for the six-month period compared to net income of $924,000 last year [19] Business Line Data and Key Metrics Changes - Total interactive revenue increased by 7% for the quarter and 10% for the six-month period, with profit margins of 58% for the quarter and 55% for the six-month period [21] - E-commerce revenue grew by 17% for Q2 and is up 8% for the six-month period [22] - The online news initiative revenue grew by 26% for the quarter and 51% for the six-month period compared to 2024 [21] Market Data and Key Metrics Changes - The company is currently pacing down approximately 1% for Q3, but September is pacing up 1.5% [22] - Local direct revenue is pacing down 4.4%, local agency down 0.8%, and national down 19.1% for Q3 [23] Company Strategy and Development Direction - The company is focusing on reducing unnecessary operating expenses, reinvesting in research and development, and training media advisers to navigate a fragmented marketplace [12][13] - The management emphasizes the importance of maintaining a strong digital culture and improving digital revenue as part of their growth strategy [10][11] - The company is exploring the sale of non-core assets and tower sites to fund stock buybacks and dividends [25][31] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future despite current challenges, stating that traditional revenue verticals are showing signs of recovery [11] - The company is committed to selling its way out of the current macroeconomic challenges rather than cutting costs [12] - Management highlighted the need for talented media advisers to help advertisers navigate a complex marketplace [12] Other Important Information - The company paid a quarterly dividend of $0.25 per share, totaling approximately $1.6 million [24] - Saga has paid over $138 million in dividends since 2012 and has repurchased over $58 million in stock [24] - The company has $24.9 million in cash and short-term investments as of August 4, 2025 [25] Q&A Session Summary Question: Can you discuss Q3 pacing and the growth of the digital business? - Management noted strong growth in the digital business and positive pacing for Q3, despite fragmentation in search traffic [28][29] Question: What are the capital allocation plans? - Management confirmed non-binding negotiations to sell tower sites, expecting proceeds in the high 7-figure or low 8-figure range, with some proceeds allocated for stock buybacks and dividends [31]