Saga Posts Q3 Loss on Music Licensing Settlement
| RADIO ONLINE | Thursday, November 6, 2025 | 11:01am CT |
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 Saga Communications |
Saga Communications reported a third-quarter net loss of $532,000, reversing a profit of $1.3 million in the same period last year, largely due to a retroactive music licensing settlement with ASCAP and BMI. Net revenue slipped 1.8% to $28.2 million, compared to $28.7 million a year ago. Station operating expenses rose 8.7% to $24.7 million, driven by a $2.1 million retroactive rate adjustment covering the period from January 2022 through the current quarter.
Without the settlement, Saga said operating income would have totaled $1.5 million, essentially flat year-over-year, and station operating income would have been $5.6 million, down slightly from $6 million last year. Reported results included an operating loss of $626,000 and a 41% decline in station operating income to $3.5 million.
For the first nine months of 2025, revenue decreased 3.7% to $80.6 million, while station operating expenses edged up 0.6% to $68.9 million. The company reported a nine-month net loss of $979,000 compared to net income of $2.2 million in the prior-year period. Excluding the settlement, Saga would have posted operating income of $574,000 and a 9.2% decline in station operating income to $13.8 million.
Same-station revenue for the nine-month period fell 4.8% to $78.8 million, while same-station operating expenses decreased 0.8% to $67.1 million. Political revenue dropped sharply, totaling $73,000 in Q3 and $395,000 year-to-date, compared to $677,000 and $1.3 million, respectively, a year ago.
In October, Saga entered an agreement to sell 22 telecommunications tower sites for approximately $10.7 million. The company has received $8.7 million in proceeds, with an additional $1.8 million held in escrow pending final landlord consents.
Saga paid a quarterly dividend of $0.25 per share on September 19, totaling about $1.6 million. Since 2012, the company has distributed over $140 million in dividends and said it remains committed to returning capital to shareholders through regular and potential special dividends.
