Saga Communications Reports Revenue and Profit Decline in Q2 and First Half of 2025

Saga Communications, Inc. reported its financial results for the second quarter and first half of 2025, revealing a decline in both revenue and profitability compared to the same periods in 2024. For the three months ended June 30, 2025, the company generated net operating revenue of $28.2 million, a decrease of 5% from $29.7 million in the prior year. The decline was attributed to a drop in local and national advertising revenues, which were impacted by fewer political advertising opportunities and a decrease in gross local revenue across several key markets. The company reported a net income of $1.1 million, or $0.18 per share, down from $2.5 million, or $0.40 per share, in the same quarter of 2024.

For the first half of 2025, Saga's net operating revenue totaled $52.4 million, down 4.7% from $55 million in the first half of 2024. The company experienced a similar trend in profitability, reporting a net loss of $447,000 for the six months ended June 30, 2025, compared to a net income of $924,000 in the prior year. The decline in revenue was primarily due to reduced local and national advertising sales, which accounted for a significant portion of the company's income. Operating expenses also decreased, reflecting cost management efforts, but not enough to offset the revenue decline.

In terms of operational developments, Saga Communications continues to focus on its digital advertising strategy, which has shown growth. Interactive advertising revenue increased by 9.9% to $8.1 million for the first half of 2025, compared to $7.3 million in the same period of 2024. The company operates in 28 markets, with a total of 82 FM and 31 AM radio stations, and it is actively exploring opportunities for expansion through acquisitions. The company’s recent acquisition of radio assets in Lafayette, Indiana, for $5.3 million, which closed in May 2024, is part of this strategy.

Saga's balance sheet as of June 30, 2025, showed total assets of $218.9 million, a slight decrease from $221.7 million at the end of 2024. The company maintained a stable cash position with $15.8 million in cash and cash equivalents. Total liabilities decreased to $55.2 million from $55.8 million at the end of 2024. The company declared dividends totaling $0.50 per share during the first half of 2025, down from $1.10 per share in the same period of 2024, reflecting a shift in capital allocation priorities amid changing financial conditions.

Looking ahead, Saga Communications anticipates continued challenges in the advertising market, particularly with fewer political advertising opportunities in 2025. The company remains committed to its digital strategy and is focused on managing costs while exploring potential acquisitions to enhance its market position. The outlook for the remainder of the year will depend on the overall economic environment and the company's ability to adapt to changing market dynamics.