Saga's Revs Dial Down

RadioThe fortunes of Saga Communications followed the rest of the radio industry last year, with revenues dipping in the fourth quarter and the full-year results basically flat for 2011.

Total revenues at Saga -- which operates about 100 radio stations in 26 markets nationwide, as well as a handful of radio stations in Texas and Missouri -- fell 3.6% to $32.9 million in the fourth quarter of 2011. Revenues for the full year slipped marginally, with a 0.4% decrease to $127.3 million.

Like other big broadcast radio groups, Saga’s performance in the fourth quarter was likely affected by the absence of political advertising related to the 2010 midterm elections. The company also stands to benefit from renewed political ad spending in fierce contests this year, including the ongoing Republican presidential primary and the general elections.

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Saga compares favorably with many of its larger peers in carrying a much smaller amount of debt, at $69.1 million, down from $96.1 million at the end of 2010. That compares to $2.9 billion of debt for Cumulus Media, following its merger with Citadel, and $20 billion for Clear Channel Communications, following its private equity buyout.

The radio business in general had a mediocre 2011. According to the Radio Advertising Bureau, total radio ad revenues decreased 2% in the fourth quarter of 2011 to $4.5 billion. For the full year, total ad revenues increased 1% to $17.4 billion.

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