Saga Communications started 2023 with higher revenue, but lower earnings per share. CEO Chris Forgy was absent from the Q1 earnings call on Wednesday as CFO Sam Bush led the meeting. The company reported a 1.3% increase year-over-year in net revenue to $25.3 million, but Saga was hampered by higher station operating expenses of $21.7 million across its 27 markets.
Those expenses were attributed to increased self-insured health care costs and raised employee compensation. Station Operating Income declined to $4.8 million from $5.57 million. Free Cash Flow also shrank to $1.07 million from $1.92 million. Saga paid a quarterly dividend of $0.25 per share and had $37.5 million in cash and short-term investments as of March 31, as the company remains one of radio’s top Wall Street earners.
Digital revenue rose 9%, led by Saga’s streaming at a 22% increase.
Looking to the future, Saga expects to spend approximately between $5 and $5.5 million for capital expenditures during 2023. No acquisitions were discussed as Bush touted discipline, saying the market isn’t big enough to talk acquisitions.
A revenue decline is also predicted for the year in the low-single digits.
