SAGA Communications, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in both revenue and profitability compared to the same periods in 2023. For the third quarter of 2024, net operating revenue was $28.1 million, down 3.5% from $29.1 million in Q3 2023. For the nine months ended September 30, 2024, net operating revenue totaled $81.5 million, a decrease of 2.5% from $83.6 million in the prior year.

Operating income for Q3 2024 fell significantly to $1.6 million, a 52.9% decrease from $3.5 million in Q3 2023. For the nine-month period, operating income dropped to $1.4 million from $8.7 million, marking an 84.2% decline. Net income for Q3 2024 was $1.3 million, down 53.6% from $2.7 million in Q3 2023, while net income for the nine months was $2.2 million, a 68.7% decrease from $7.0 million in the same period last year. Basic earnings per share also reflected this downturn, with Q3 2024 at $0.20 compared to $0.45 in Q3 2023, and $0.35 for the nine months ended September 30, 2024, down from $1.15.

The decline in revenue was attributed to a decrease in gross local advertising revenue, which fell by $5.6 million, although there were increases in digital and political advertising revenues. Total station operating expenses increased by 4.7% to $70.0 million for the nine months ended September 30, 2024, compared to $66.9 million in 2023.

On the strategic front, SAGA Communications completed the acquisition of several radio stations from Neuhoff Communications for $5.3 million, which closed on May 31, 2024. This acquisition included additional costs, bringing the total transaction to $5.8 million. The company recognized $0.9 million in goodwill from this acquisition, reflecting anticipated synergies and brand value.

Financially, SAGA's total assets decreased to $223.2 million as of September 30, 2024, from $232.2 million at the end of 2023. Total current assets also declined to $48.4 million from $60.6 million. Cash and cash equivalents were reported at $19.9 million, down from $29.6 million at the end of 2023. The company’s total liabilities decreased to $57.2 million from $61.7 million, while total shareholders’ equity fell to $166.0 million from $170.5 million.

SAGA Communications continues to navigate a challenging advertising environment, with plans to enhance its digital initiatives and maintain its market presence across 28 radio markets. The company has also declared dividends totaling $1.35 per share for 2024, compared to $3.00 per share in 2023.