Saga Communications says it has had “multiple interactions” with tower companies about selling off some of its tower sites. The radio broadcaster says it expects to evaluate offers in the coming months.
During an investor call last week, Saga CFO Sam Bush said the company is continuing to evaluate noncore asset sales in order to maximize its value. “We’ve had multiple interactions with companies that have been interested in one or more of the towers we own,” Bush said. “We expect to receive shortly an offer to purchase some of our tower sites, which we will be evaluating.”
Bush said he expects to have more to report on the possible sale of tower assets in May when the company discloses its Q1 2025 earnings.
Saga operates radio stations in 28 markets, including 82 FM and 31 AM stations. The media company says it has nearly 800 employees.
Other radio broadcasters have shed tower sites in recent years. Radio World has reported that iHeartMedia, Cumulus Media and Townsquare Media have sold off most of their tower assets.
The downturn in radio station valuations in the last few years, according to brokers, has caused a number of broadcasters to sell their transmission towers and the property associated with them to fund expansion, pay operating expenses or pay down debt.
Saga has outstanding debt of $5 million, according to last week’s quarterly earnings call, which is small when compared to the debt of media companies like iHeart and Cumulus. However, even though it is pondering selling off some of its sticks, the Detroit-based radio broadcaster says it doesn’t plan massive cuts to staff.
During the call, Saga CEO and President Chris Forgy said: “Our most important assets are people, walking in and out of the doors of our radio stations every day. That being said, we are always [taking] advantage of operating efficiencies across all platforms in all of our Saga markets.”
Forgy was upbeat about Saga’s future, and said last week that his company has gone through “transformational change” the past two years, placing more focus on selling local digital advertising.
“Transformational change is really not easy,” Forgy said. “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.”
Businesses are pouring more money into digital advertising each and every year, Forgy said; however, the rapid growth of digital budgets has outpaced the ability of advertisers to use them effectively, creating a “fragmented and confusing marketplace.”
Saga’s new digital strategy, Forgy said, focuses on “simplicity and clarity” in a disruptive marketplace. The company says its “blended advertising” approach is impacting Saga’s local, direct and digital revenues in a positive fashion.
“Advertisers are just simply fed up with ineffective evergreen, set it and forget it campaigns and empty promises. They don’t like what they’re buying or who they’re buying it from. These are the same local advertisers who say they trust radio salespeople most for market knowledge and advice but aren’t buying from us,” he said on the earnings call.
Saga reported last week its net revenue in the fourth quarter of 2024 was down slightly year-over-year to $28.8 million. For 2024, net revenue declined by 2.2% to $110.3 million.
Meanwhile, Saga says revenue pacing for the first quarter is soft. “For the quarter, we are currently pacing down mid- to high single digit. It continues to be an unsettled advertising market, particularly in radio. We expect revenue to turn positive from a growth perspective beginning with the second quarter.”
Saga officials didn’t immediately return our phone call seeking further comment.
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