Saga Communications CEO Ed Christian said revenue was good in 2016 and he’s thankful for everything that happened. Of course, political revenue helped radio in 2016 and Saga was no different, taking in $929K in political radio revenue in Q4 and $1.9 million in political revenue for radio for the full year.
Same-station revenue increased nearly 3% to $36.1 million in Q4, and for the year same-station net revenue increased 3.0% to $134.2 million. The same-station revenue includes Saga’s 100 radio stations, four TV stations, and nine LPTV stations. For the year, Saga took in $6.7 million in political revenue with $3.8 million going to radio. That’s compared to $1.3 million in 2015 with all but $10,000 going to radio.
So how is 2017 looking? Christian called Q1 of this year “a cold water wake-up call.” He says business is being placed later and later by advertisers and the automotive and medical categories dropped substantially, but there are some signs that the automotive category is rebounding. He called January a stark reality with March looking a little more alive.
Christian said it’s not only Saga, and in discussions he’s had with other radio companies he’s hearing the same. “The pattern of what to expect has been established. This is not 2008 but we need to be watchful. 2017 will require more focus and dedication and more grit.” Like others, Christian said he is really looking at greater areas of efficiency, which some might read as cuts. “We need to rethink our structure. How can we do this better and be more efficient?”
