That’s what Saga CEO Ed Christian said Wednesday as earnings season begins in the midst of a devastating pandemic that has stunted ad revenue across the country. While hope may not be a strategy, it’s clearly the hope of many that businesses get the all clear to open their doors sooner rather than later.
Saga’s Q1 press release states that advertising revenue has declined significantly as a result of the pandemic and these unfavorable trends have continued into May and June. “While we cannot reasonably estimate the length or severity of this pandemic, an extended economic slowdown in the U.S. could materially impact our consolidated financial position, consolidated results of operations, and consolidated cash flows in fiscal 2020 or beyond.”
Christian said the situation has been disastrous with the possibility of revenue being down 50% to 60% through June. He added that the company remains focused on strategic tactics and culture change. He says being live and local isn’t enough, “you need stickiness in the community.” The company is also offering some long-time advertisers free advertising during the crisis.
Here are the numbers. Net revenue went from 27.8 million in Q1 of 2019 to $26 million this year. Net income increased to $1.7 million from $1.4 million . Gross political revenue increased $963 thousand to $1 million. Operating expenses decreased $964 thousand to $22.2 million and operating income increased $202 thousand to $2.2 million.