Despite challenges in the broadcast sector, Saga Communications CEO Chris Forgy celebrated the company’s strategic focus on “blended advertising” – integrating radio with digital marketing solutions – in the company’s Q4 and full-year 2024 earnings call.
Saga reported a 1.3% decrease in net revenue for Q4 2024, totaling $28.8 million compared to $29.1 million the previous year. Station operating expenses increased by 4.1% to $24.3 million for the quarter, but the company says it has identified potential efficiencies that could reduce expenses by 1% to 2% without impacting key investments.
For the full year, net revenue declined 2.2% to $110.3 million, with operating income reaching $2.4 million. The company also noted the expected increase in political advertising revenue, which totaled $3.3 million in 2024 compared to $944,000 in 2023.
Amid ongoing industry challenges, Forgy reiterated Saga’s commitment to leveraging digital advertising opportunities to drive growth. “Transformational change is really not easy. We’re in the midst of it. It takes time, resources, people, training, commitment, and a very strong belief in what you’re building will be successful. And we do,” said Forgy.
Forgy emphasized that the rapid growth of digital advertising has outpaced advertisers’ ability to use these platforms effectively, creating a gap that Saga aims to fill. “Radio simply cannot win celebrating less than 1% of the digital ad pie. We cannot simply compare it to where radio came from. We need to lift our eyes and look to the macro digital marketplace for what’s available to us,” he stated.
Forgy highlighted early signs of success from Saga’s digital transformation. In 2024, the company generated nearly $7.5 million in new revenue from online news sites, e-commerce, streaming, and various digital services.
As for 2025, Saga CFO Sam Bush acknowledged a soft start, with first-quarter revenue pacing down mid-to-high single digits. However, the company expects improvement by the second quarter with digital-forward pacing in April and May to be up significantly.
The report comes as Saga fends off the nomination of four board candidates by shareholder Gate City Capital Management, LLC. In a pre-earnings statement, the broadcaster said, “Regrettably, Gate City appears to misunderstand Saga’s business, the changing landscape in which the Company operates, and the strategy Saga is pursuing.”
Forgy emphasized that while the current earnings report may not have delivered the financial results the company hoped for, the long-term strategy remains on track. “Look, this was not the results earnings call any of us wanted, but the good news is we have a plan, and the plan is working,” he said. “You can’t cut your way out of this downdraft because the strong winds will just continue to come. What you can do is adjust your sails, execute impeccably, and sail. And that we will do.”
