SAGA COMMUNICATIONS INC Q4 FY2024 earnings call

• Chris Forgy highlighted Saga's transformational change, focusing on blended advertising to address issues in the digital advertising market such as fragmented marketplace, frustrated buyers, etc. Blended advertising focuses on the consumer journey using radio, search, and display.
• Sam Bush provided financial details including net revenue, operating expenses, political impact, and efficiency initiatives. Discussed investments in infrastructure and training for media advisers, and expectations for expense changes in 2025.

For the quarter ended December 31, 2024, net revenue decreased 1.3% to $28.8 million compared to $29.1 million last year. Excluding political, overall gross revenue for the quarter would have decreased ~6.5%. Same-station net revenue decreased 3.9% to $28 million. For the 12-month period ended December 31, 2024, net revenue decreased 2.2% to $110.3 million compared to $112.8 million last year. Excluding political, overall gross revenue for the year would have decreased ~4.3%. Interactive revenue grew 20.9% for the year to $11.6 million and 19.5% for the quarter to $3 million. National revenue grew 3.3% for the year and 13.1% for the quarter. E-commerce revenue increased $904,000 for the year to $2.4 million and $55,000 for the quarter to $569,000.

• Anticipates capital expenditures of $4-4.5 million in 2025.
• Paid dividends, with intention to continue.
• Expected station operating expense increase of 1.5%-2.5% in 2025.
• Corporate G&A expense expected to be $12 million in 2025 vs $12.6 million in 2024.
• Tax rate expected 26%-29%, deferred tax rate 5%-9%.

• Impact of political revenue fluctuations.
• Uncertainties in the advertising market, particularly radio.
• Competition in the digital advertising space.

Q: Census of first quarter advertising market trends?

A: January and February were about the same, both down high single digits. March was a bit better, down mid-single digits. April and May and June have all improved, with April starting down mid-single digits and June appearing flat to up a little in pacing.

Q: Many radio stations have turned to central casting to reduce head count and talent cost and/or looking to regional hub and spoke strategies. Is this something that's being contemplated?

A: Massive cuts, no. We're not going to central casting. We value our people as our most important assets, but we are always looking for operating efficiencies across all platforms in our markets.