The following is a summary of the Saga Communications, Inc. (SGA) Q1 2024 Earnings Call Transcript:
Financial Performance:
Saga reported a Q1 2024 net revenue decrease by 2.5% to $24.7 million compared to last year's $25.3 million.
Gross political revenue was lower, at $312,000.
Station operating expense increased by 5.9% to $23 million, leading to an operating loss of $2.4 million this quarter compared to operating income of $905,000 for the same quarter last year.
Despite the overall decline in revenue, e-commerce revenue experienced an increase of $348,000, with interactive revenue growing by $572,000 for the quarter.
The company's balance sheet shows $28.8 million in available cash and short-term investments as of March 31, 2024.
The company paid a quarterly dividend of $0.25 per share and a variable dividend of $0.60 per share.
Business Progress:
Saga is set to close an acquisition of five radio stations in Lafayette, Indiana in June 2024 for $5.3 million.
E-commerce continues to be a growing area of business for Saga, pulling in nearly $2 million in revenue over the past year.
Saga has launched a growth plan, investing in skills training and new resources for their leadership team.
Online news services have hit key milestones, with more than 1 million users and over 3.5 million page views. This service has generated over $1.5 million in revenue and is expected to be fully operational by the end of June 2024.
Despite this quarter's financial setbacks, Saga is determined to improve its media services. The company plans to increase revenue growth through staff and sales investments, alongside interactive development initiatives.
More details: Saga Communications IR
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