For the second earnings call in a year, Saga Communications CEO Chris Forgy invoked the Stockdale Paradox as the broadcaster doubles down on its “Blended” digital transformation strategy while working to reposition itself within a shifting ad marketplace.
The Stockdale Paradox is a concept from Jim Collins’ book Good to Great, based on the experiences of Admiral James Stockdale, a Vietnam War POW. It means confronting the brutal facts of your current reality, no matter how difficult, while maintaining unwavering faith that you will prevail in the end. It’s about balancing realism and resilience.
Saga’s resilience underwent quite a test in Q1 2025, facing economic headwinds and biting investor criticism, which Forgy said prompted both internal evaluation and external transparency.
He used the earnings call to emphasize Saga’s burgeoning philosophy of pairing radio’s persuasive reach with digital attribution and targeting, a strategy he refers to as “click, visit, call, and search.” He criticized the broader digital marketplace as “broken,” marked by unmet advertiser needs, excessive fragmentation, and a lack of trust.
Forgy highlighted a recent $1 million+ integrated campaign in Columbus, OH, where a new advertiser awarded Saga an initial $750,000 campaign, then later shifted an additional $298,000 away from a competing provider after performance expectations weren’t met.
According to Saga CFO Sam Bush, Q1 2025 net revenue dropped 4.3% year-over-year to $24.2 million, with a net loss of $1.58 million, flat compared to the same period last year. Station operating expenses decreased 2.2% to $22 million. However, Saga also reported a 14% increase in interactive revenue for the quarter, with a 51% profit margin excluding sales commissions.
Saga’s digital platform has already generated $5.3 million in revenue through early May, surpassing its full-year 2024 total of $5 million. The company also reported $12.5 million in total interactive revenue year-to-date, compared to $14.2 million in all of 2024. May 2025 is expected to mark the highest digital revenue month in Saga’s history. The company defines interactive revenue to include streaming, e-commerce, online news, and digital ads.
Looking ahead, the company aims to capture 5% of the digital ad dollars in its 28 markets within the next 18–24 months – a goal Forgy says could double Saga’s annual revenue while preserving radio’s core role. He added, “Transformational change is hard. It takes time, money, and great resolve.”
Saga says it plans to refresh its board through 2025 and has accepted a non-binding letter of intent to sell select tower sites, with proceeds potentially going toward stock buybacks.
As for the immediate future, Saga’s pacing for Q2 is improving despite weak April performance. Bush noted that May was pacing down just low single digits, with June currently trending flat. Interactive pacing for Q2 is up 18.4%, and the company is also seeing improvements in local direct business as part of its “blended” radio-plus-digital approach.
Another losing quarter… you all obviously don’t care about your shareholders so why don’t you just turn off your radio stations and go sell digital.