Radio did a bit better than TV in Q2 at Saga Communications. Overall, the company reported that revenues were up 4% to $32.9 million and operating income gained 27.5% to $7.8 million.
Radio revenues rose 4.1% to $28.7 million and operating income for the radio division improved 12.7% to $8.8 million.
For the smaller TV division, revenues rose 2.9% to $4.2 million, but operating income shot up 77.1% to $896K.
In a quick note to clients before the Saga conference call, Wells Fargo Securities analyst Marci Ryvicker noted that the results were below her projection that total revenues would be up 5%. EBITDA of $9.7 million was up 16%, also below her projected 17% gain.
“We are not surprised by the slight miss given that the radio industry seemed to have a pause at the end of the quarter,” said Ryvicker, who was awaiting some color on Q3 trends from management.
“June really hit us,” CEO Ed Christian said during the company’s quarterly conference call, saying the flat month was unexpected and was seen by other radio companies as well. But since then he said pacings are up and inventory is tightening.
CFO Sam Bush provided details. Aprils was up a little over 6%, May was up almost 5.5% “and then June it just flattened out.”
All three months are pacing ahead in the current quarter. July was up 6-7%, while August and September are packing up mid to high single digits, with Bush expecting both months to finish with gains in the mid single digits.