The following is a summary of the Saga Communications, Inc. (SGA) Q4 2023 Earnings Call Transcript:
Financial Performance:
Saga Communications reported a downturn in Q4 where national was down 4.2% and local down 1.7%, but a 3.7% growth in the national was observed for the year ending 12/31/2023.
Streaming business showed a substantial increase of 46% from $2.6 million in 2022 to $3.9 million in 2023.
E-commerce generated revenue of $1.4 million for the year ending 12/31/2023, doubling its performance.
Q4 net revenue was $29.1 million, showing a decrease of 3.3% compared to $30.1 million last year, primarily due to the fall in political revenue.
For FY 2023, the net revenue saw a decrease of 1.8% to stand at $112.8 million.
The company declared $6.1 million in quarterly cash dividends and a special cash dividend of $12.5 million during 2023.
Business Progress:
Saga Communications announced the acquisition of the Lafayette, Indiana Cluster set to close in mid-May of Q2 2024.
A shift in the launch of a new online news service to achieve 18 markets by the end of Q2 2024, generating over $1 million in pre-booked revenue.
Digital representation accounted for 8% of the total net revenue in 2023, forecasting to reach 11% in 2024.
The company is eyeing prudent acquisition opportunities.
Upcoming acquisition of five radio stations in Lafayette, Indiana is seen as an opportunity for expanding community involvement.
Investments in diverse revenue areas such as national streams, interactive, non-traditional revenue,and local direct revenue seen as a potential growth area.
Expects a 3.5% to 4.5% increase in station operating expenses due to investments in staff, sales training, and ongoing interactive development.
A planned capital expenditure between $5 million-$5.5 million for 2024 is on the cards.
More details: Saga Communications IR
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