- **Revenue Impact**: Q3 net revenue down 1.8% to $28.2M due to $1.7M music licensing settlement; interactive revenue up 32.6% offsetting broadcast declines.
- **Digital Growth**: Interactive revenue profit margin 54%, with blended strategy adoption driving 27% total spend growth among local advertisers.
- **Asset Sales & Dividends**: $8.7M from tower sales (net proceeds); $1.6M Q3 dividend paid, with buybacks planned using sale proceeds.
- **Market Challenges**: Q4 pacing down 11% (including political), but interactive revenue pacing up 32%; national ad weakness persists.

**【CEO Summary Section】**
- **Digital Transformation Focus**: CEO Chris emphasized the company's blended digital strategy to double gross revenue in 18-24 months by capturing 5% of local search and display ad spend. This involves reinvesting in R&D, training, and strategic asset sales (e.g., tower transactions) to return value to shareholders.
- **Asset Optimization**: Sold 22 telecommunications towers for $8.7 million (net proceeds) and entered long-term leases for continued use. Proceeds will partially fund stock buybacks, alongside maintaining a $0.25 quarterly dividend.
- **Market Positioning**: Focused on small-to-medium markets with strong local ties, achieving $1-1.5 million/month in local direct revenue vs. agency-driven ad spend. Local direct advertisers who adopted the blended strategy saw 9% radio spend growth and 27% total spend growth.

**【CFO Financial Commentary】**
- **Q3 2025 Financials**: Net revenue decreased 1.8% to $28.2 million due to a $1.7 million music licensing settlement. Station operating income (non-GAAP) was $3.5 million, with interactive revenue up 32.6% ($1.1 million increase) offsetting broadcast revenue declines (excluding political).
- **Nine-Month Trends**: Net revenue down 3.7% to $80.6 million. Without the settlement, station operating expense would have decreased $1.7 million, and station operating income would have been $13.8 million vs. reported $11.7 million.
- **Liquidity & Dividends**: $26.3 million cash on hand as of Q3. Paid $1.6 million in dividends, maintaining a 12-year streak of over $140 million in total dividends.

**【Q&A Key Highlights】**
- **Market Tone & Pacing**: Q4 pacing down 11% (including $2 million in political ads vs. prior year), but interactive revenue pacing up 32%. CEO noted national ad weakness and delayed Fed rate cut impact on Main Street (e.g., housing, auto sales).
- **Buyback Clarity**: CFO Sam Bush stated buyback timing/amounts will be finalized post-escrow tower sales (remaining $1.8 million pending). Proceeds will prioritize buybacks while maintaining dividend policy.
- **Digital Momentum**: Interactive revenue growth (32.6% Q3, 17.1% YTD) and 54% profit margin highlight digital strategy traction, with blended product adoption showing 27% total spend growth among local direct advertisers.


Saga Communications, Inc. (SGA) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

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Diluted EPS from Discontinued Operations

SGA

SGA fundamentals

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