Saga Communications (SGA) investor relations material

Digital transformation and strategy

• Undergoing a cultural shift, rebranding roles and business units to align with a digital-first approach.

• Entered digital advertising late, learning from industry peers' mistakes to avoid common pitfalls.

• Focused on disrupting local advertising markets, especially in smaller communities, by integrating digital and radio strategies.

• Emphasizes a 'blended advertising' model combining radio, search, and display to maximize advertiser impact.

• Aims to double annual gross revenue by capturing just 5% of digital ad spend in key markets.

Market positioning and community engagement

• Operates in 27 markets, with 21 below Market 100, focusing on state capitals, universities, agriculture, and retirement communities.

• Deep community involvement, with staff active in local government and charitable causes.

• Local direct business is a primary revenue driver, outperforming local agency business by $1M-$1.5M monthly.

• Trusted relationships with advertisers enable higher market impact and adoption of new strategies.

Revenue growth and digital adoption

• Digital revenue is growing month-over-month and quarter-over-quarter, with digital now nearly 16% of net revenue.

• Targeting 20%-25% digital revenue share in the near term, with a long-term goal of 1/3 each from radio, search, and display.

• Large blended advertising orders ($30K-$50K/month) are replacing smaller traditional radio orders.

• In-house talent development and reduced reliance on third-party providers are increasing margins.

• Digital revenue could eventually comprise 65%-67% of total company revenue.