Saga Communications Reports $24.2 Million Revenue in Q1 2025, Net Loss of $1.575 Million

Saga Communications, Inc. reported a net operating revenue of $24.2 million for the first quarter of 2025, a decrease of 4.3% from $25.3 million in the same period of 2024. The decline in revenue was attributed to a drop in gross local and national advertising revenue, which fell by $1.8 million and $432,000, respectively. This was partially offset by increases in interactive revenue and non-spot revenue, which rose by $342,000 and $97,000, respectively. The company recorded a net loss of $1.575 million, or $0.25 per share, compared to a net loss of $1.577 million, also $0.25 per share, in the prior year.

Operating expenses for the quarter were $21.96 million, down 2.2% from $22.46 million in the previous year. The decrease was primarily due to reductions in compensation-related expenses and other operational costs. Despite the reduction in operating expenses, the company still reported an operating loss of $2.298 million, slightly improved from the $2.417 million loss recorded in the same quarter of 2024. The increase in corporate general and administrative expenses, which rose by $84,000, was driven by higher consulting and audit fees, as well as costs associated with shareholder activism.

In terms of strategic developments, Saga Communications continues to focus on its digital advertising initiatives, which have seen increased spending. The company operates in 28 markets, with a total of 82 FM and 31 AM radio stations. The Charleston, South Carolina; Columbus, Ohio; Des Moines, Iowa; Milwaukee, Wisconsin; and Norfolk, Virginia markets collectively accounted for approximately 34% of the company's consolidated net operating revenue during the quarter. The company is also actively exploring acquisition opportunities to expand its broadcast properties.

As of March 31, 2025, Saga Communications had total assets of $219.3 million, a slight decrease from $221.7 million at the end of 2024. The company maintained a long-term debt of $5 million, consistent with the previous quarter. Cash and cash equivalents stood at $17.9 million, down from $18.9 million at the end of 2024. The company declared a quarterly cash dividend of approximately $1.6 million during the first quarter, reflecting its ongoing commitment to return value to shareholders.

Looking ahead, Saga Communications anticipates challenges in generating advertising revenue due to a decrease in political advertising and overall economic conditions. The company plans to continue leveraging its digital strategy to enhance revenue streams and is committed to addressing the material weaknesses identified in its internal controls over financial reporting. Management remains optimistic about the potential for future growth through strategic acquisitions and operational improvements.