Saga Communications, Inc. Q2 FY2025 earnings call

• Matt Burgoyne shared an experience with a 'whale' client where Saga had an opportunity to win $1.3M annually due to other providers' failure, and the team provided a plan to fix issues. - Digital culture continues to grow with digital percentage of total net revenue increasing from 13.6% to 15.6% QoQ. - Saga is focused on blended advertising, training media advisers, reducing unnecessary operating expenses, reinvesting in R&D and people, and capital allocation including potential asset sales. - Utilizing AI for cost savings in digital reconciliation and radio production, saving $0.25M annually in radio production.

For the quarter ended June 30, 2025, net revenue decreased $1.5 million or 5% to $28.2 million compared to $29.7 million last year. Station operating expense decreased $1.1 million or 4.6% to $22.2 million. Operating income was $1.4 million compared to $2.1 million last year. Station operating income (non-GAAP) was $6 million for the quarter. On a same-station basis, net revenue decreased $1.9 million or 6.4% to $27.6 million, and station operating expense decreased $1.5 million or 6.4% to $21.7 million. For the 6-month period ended June 30, 2025, net revenue decreased $2.6 million or 4.7% to $52.4 million. Station operating expense decreased $1.6 million or 3.4% to $44.2 million. Operating loss was $889,000 compared to $274,000 last year. Station operating income (non-GAAP) was $8.2 million for the 6-month period. On a same-station basis, net revenue decreased $3.6 million or 6.5% to $51.2 million, and station operating expense decreased 5.7% to $43 million. Interactive revenue was up 7% for Q2 and 10% for the 6-month period, online news initiative revenue grew 26% Q2 and 51% 6-month, e-commerce revenue grew 17% Q2 and 8% 6-month.

• Third quarter pacing is down ~1% but September pacing up 1.5%; excluding political, pacing flat for third quarter; fourth quarter revenue challenge from political. - Capital expenditures expected between $3M-$3.5M in 2025. - Station operating expense expected to decrease 2%-3% vs 2024. - Corporate G&A expense expected ~$12M in 2025 vs $12.6M in 2024. - Proceeds from potential tower site sales to be used for stock buybacks and dividends.

Q: About Q3 pacing and impact of search traffic decline on digital business A: Chris says it's fragmented search, but Saga is committed to being where customers search, whether on Google, AI or social Q: About capital allocations A: Saga is in nonbinding negotiations to sell tower sites, with proceeds expected in the high 7-figure or low 8-figure range, and proceeds to be used for stock buybacks and dividends