Saga Communications (SGA) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue decreased 1.5% year-over-year to $28.7 million; six-month revenue was $53.4 million, down 2.0% from 2023.

• Q2 2024 net income was $2.5 million ($0.40/share), down 25.3% from Q2 2023; six-month net income was $0.9 million ($0.15/share), down 78.4% year-over-year.

• Digital and interactive revenue grew significantly, with e-commerce up 98.5% and online news up 159% year-over-year for the quarter.

• The company completed the acquisition of six Lafayette, Indiana radio stations and one translator on May 31, 2024.

• The company continues to focus on local, hyper-connected community engagement and transformational growth strategies, especially in digital and online news verticals.

Financial highlights

• Q2 2024 net revenue was $28.7 million, down 1.5% year-over-year; six-month net revenue was $53.4 million, down 2.0%.

• Station operating expense increased 5.1% in Q2 to $23.5 million; six-month expense up 5.5% to $46.5 million.

• Station Operating Income for Q2 was $6.4 million; net income was $2.5 million ($0.40 per diluted share).

• Operating income for Q2 was $2.1 million, down 50.1% from Q2 2023; six-month operating loss was $0.3 million versus $5.2 million income in 2023.

• Other income in Q2 included a $1.1 million gain from the sale of a Broadcast Music, Inc. investment.

Outlook and guidance

• Q3 pacing remains soft, currently down mid-single digits, but improvement is expected based on prior trends.

• Political advertising is expected to pick up later in the year, but no significant increases have been seen yet.

• Station operating expense on a same-station basis is projected to increase 4%-5% for 2024, driven by investments in staff and digital initiatives.

• Annual corporate, general, and administrative expense is expected to be $12–$12.5 million; tax rate projected at 26%-29%.

• Anticipated 2024 capital expenditures of $5.0–$5.5 million, funded by operations.