Saga Communications reported third-quarter net revenue of $26.7 million, a 5.4% decrease from $28.2 million a year earlier. Its net loss widened to $7.1 million from $532,000, largely due to a $9.2 million noncash impairment charge related to its FCC licenses.
The company attributed the impairment to higher interest rates, lower operating margins and reduced projections for market revenue. Saga posted an operating loss of $9.8 million, compared with $626,000 in the prior-year quarter. Without the impairment charge, the company said its operating loss would have been $563,000 and its net loss about $240,000, or 3 cents per share.
Station operating expenses declined 1.7% to $24.2 million. Station operating income, a non-GAAP measure, fell to $2.4 million from $3.5 million. Gross political advertising revenue increased to $1.2 million from $73,000 a year earlier. Saga said it had booked about $3.6 million in gross political revenue for the fourth quarter.
For the nine months ended September 30, net revenue decreased 5.8% to $75.9 million from $80.6 million. Station operating income fell to $6.2 million from $11.7 million. The net loss widened to $8.5 million, or $1.34 per diluted share, from $979,000, or 15 cents per diluted share.
Saga’s board declared a quarterly cash dividend of 25 cents per share, payable December 11 to shareholders of record November 23. The dividend will total about $1.6 million. At quarter-end, the company had $23.5 million in cash and short-term investments.