CEO Chris Forgy Highlights Digital Wins During Saga’s Earnings Call.

Saga Communications CEO Chris Forgy used the company’s Q1 earnings call to assure shareholders, investors, and analysts that the company is continuing its digital transformation and provided some highlights in its progress.

As previously reported by Inside Radio, first quarter net revenue was down 4.3% to $24.2 million for the first quarter compared to $25.3 million for the same period last year. Station operating expenses decreased 2.2% to $22.0 million.

“It's been an interesting few months at the Sagaverse, headlined by several spirited conversations and strong opinions expressed on multiple topics surrounding Saga Communications,” Forgy said as he opened the call. He said the recent events reminded him of the Stockdale Paradox, before reciting the passage to attendees.

The spirited conversations and strong opinions he mentioned stem from the recent public spat between Saga and shareholder Gate City Capital Management, who planned to nominate four new members to the company’s Board of Directors. They eventually withdrew that intent, but continued to show concern that digital initiatives were pulling Saga away from their core broadcast business.

Saga noted that $110,000 in expenses for the quarter were related to the proxy battle with Gate City, and said there will also be additional legal, proxy consulting, and annual meeting expenses reflected in the second quarter earnings report related to the conflict.

Another “push point,” Forgy said, was the company’s exploration of selling non-core assets and “what to do with those potential sales.” He said the company is currently evaluating a non-binding letter of intent to purchase some of Saga’s tower sites.

“The Board is committed to using a significant portion of the proceeds from such a sale for stock buybacks,” Forgy explained. “This may include open markets, block trades, or other forms of buyback as a part of our overall capital allocation plans during the course of the year.”

Regarding the company’s digital transformation, Forgy highlighted a $1 million integrated campaign for a client of its Columbus, OH, cluster. “This is the largest single order from one client in one market that I, personally, have ever seen in my 45-year advertising career.”

Saga said it has generated $5.3 million in digital revenue through the beginning of May. Last year’s total digital revenue was $5 million. Year-to-date, total interactive revenue is at $12.5 million, compared to $14.2 million in 2024. Saga expects May to be the biggest month for digital revenue in its history.

Saga said the second quarter is pacing down mid-single digits. April was down high single digits, while May improved to being down in the low single digits, and June is approximately flat with the same period last year.