Tag: Media

Gray Media Buys Block Stations for $80M as FCC Deregulation Drives Industry Deals

Posted on by slightbourne@noblecapitalmarkets.com

In a strategic move to expand its market footprint and strengthen its position in the Midwest, Gray Media has announced an agreement to acquire Block Communications’ television stations for $80 million. The deal reflects an ongoing trend of consolidation in the U.S. broadcasting industry, as media companies position themselves for potential regulatory changes at the Federal Communications Commission (FCC).

The acquisition will significantly bolster Gray’s influence in key Midwestern markets. The transaction includes WDRB (Fox) and WBKI (CW) in Louisville, Kentucky; WAND (NBC) in the Springfield-Champaign-Decatur, Illinois market; and WLIO (NBC) in Lima, Ohio, along with WLIO’s associated low-power stations. Importantly, Gray already owns WAVE-TV, the NBC affiliate in Louisville, creating a Big Four duopoly in that market—a combination that currently requires FCC approval or waivers due to existing ownership regulations.

According to Gray, these stations are not only geographically strategic but also top-performing in local news. Both WAND and WLIO ranked highest in all-day ratings among TV households in their respective markets in 2024, based on data from Comscore. This performance adds considerable value to Gray’s portfolio, allowing the company to scale up operations, share resources across markets, and boost its overall audience reach and advertising appeal.

The acquisition is expected to close in the fourth quarter of 2025, pending FCC regulatory approval and the necessary waivers. Gray expressed confidence that the deal aligns with its broader mission of supporting strong local journalism while increasing operational efficiency through smart expansion.

The timing of this acquisition is noteworthy. It comes as the broadcast television industry continues lobbying efforts for the FCC to loosen or eliminate local ownership restrictions, which currently limit the number of stations a company can own in the same market. These rules, originally designed to maintain media diversity, are increasingly viewed as outdated in today’s competitive media landscape dominated by digital and streaming platforms.

Recent moves by Gray and others—such as Scripps, Sinclair, and Allen Media—highlight growing momentum in the industry toward consolidation. Gray and Scripps recently announced a planned station swap that would also require regulatory flexibility, further signaling the industry’s expectation that change is coming to the FCC’s rulebook.

By acquiring these high-performing stations from Block Communications, Gray is not only deepening its presence in the Midwest but also strategically preparing for a post-deregulation environment. This approach enables the company to maintain a competitive edge in the fragmented and rapidly evolving media space.

Ultimately, this $80 million acquisition underscores a broader shift in broadcast strategy: scale, synergy, and local dominance are becoming more important than ever. If approved, the deal will reinforce Gray’s commitment to quality local journalism while cementing its status as one of the most prominent broadcast groups in the U.S.

Take a moment to take a look at other emerging growth media companies by taking a look at Noble Capital Markets’ Research Analyst Michael Kupinski’s coverage list.

Paramount-Skydance Merger Clears FCC: What It Means for Media Investors in a Shifting Landscape

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– The FCC has approved the $8.4 billion merger between Paramount Global and Skydance Media, removing the final regulatory obstacle.
– Skydance commits to overhauling CBS News with more balanced reporting and local news partnerships—shifting the tone of legacy media.
– The move signals potential for small- and mid-cap media disruption as legacy players face structural and ideological realignments.

The media and entertainment sector just experienced a seismic shift. On Thursday, the Federal Communications Commission formally approved the merger between Paramount Global and Skydance Media, clearing the path for the $8.4 billion transaction to move forward after more than a year of political, legal, and corporate wrangling.

For middle-market investors, this isn’t just a high-profile media headline—it’s a signal that the evolving definition of “legacy media” may be up for grabs. And where industry giants restructure, there’s often room for nimble upstarts and niche players to gain ground.

A Changing Media DNA

FCC Chair Brendan Carr cited a broad loss of public trust in national media outlets as one reason behind his approval, applauding Skydance’s commitment to overhaul CBS News. Among the pledges: appointing a CBS News ombudsman to oversee complaints of editorial bias, eliminating DEI initiatives, and reinforcing politically diverse viewpoints across CBS’s programming.

Whether investors agree with the ideological implications or not, the bottom line is clear: content strategies are becoming politically relevant assets, and media companies are increasingly shaped by the regulatory and cultural tides they navigate.

The New Power Map

The merger makes David Ellison’s Skydance the controlling force behind a sprawling content empire—Paramount Pictures, CBS, Paramount+, Nickelodeon, MTV, BET, Comedy Central, and more. With streaming growth plateauing and cord-cutting accelerating, the question becomes: How does new leadership monetize legacy assets in a digital-first world?

This moment may also introduce new competition among smaller digital studios, regional broadcasters, and emerging news platforms that offer alternative models. For investors eyeing undervalued or lesser-known content providers, this reshuffle could unlock new opportunity in the mid- and micro-cap space—especially those targeting niche audiences or regional news coverage.

Political Undercurrents Not Lost on Markets

Notably, the merger approval comes on the heels of a controversial $16 million legal settlement between Paramount and President Trump over a past CBS interview edit. Trump has publicly suggested that further ad or PSA commitments could follow from the new ownership, though Paramount denies any knowledge beyond the settlement itself.

While Commissioner Anna Gomez, the FCC’s lone Democrat, dissented on grounds of press freedom concerns, her vote was ultimately overruled. The outcome reveals the current FCC’s willingness to intervene not just on business terms, but cultural and editorial direction—adding a layer of unpredictability to future M&A in this space.

For media investors, especially those focused on growth opportunities in under-the-radar or mission-driven companies, the Paramount-Skydance merger opens the door to a new cycle of disruption. Whether the focus is hyperlocal news, politically agnostic reporting, or digitally native content strategies, now is the time to pay attention to overlooked players poised to benefit from this ideological and structural realignment in U.S. media.

Take a look at Noble Capital Markets’ Research Analyst Michael Kupinski’s coverage list for more emerging growth media companies.

E.W. Scripps (SSP) – Strengthening Its Station Portfolio

Posted on by slightbourne@noblecapitalmarkets.com


Tuesday, July 08, 2025

The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As one of the nation’s largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of 61 stations in 41 markets. The Scripps Networks reach nearly every American through the national news outlets Court TV and Newsy and popular entertainment brands ION, Bounce, Defy TV, Grit, ION Mystery, Laff and TrueReal. Scripps is the nation’s largest holder of broadcast spectrum. Scripps runs an award-winning investigative reporting newsroom in Washington, D.C., and is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps has held for decades to the motto, “Give light and the people will find their own way.”

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Compelling station swap. Scripps will be selling its stations in Lansing MI and Lafayette LA to Gray Television (GTN: Not Rated) and buying stations in Colorado Springs, CO and Grand Junction, CO and a station in Twin Falls ID. We view the move favorably, given that Scripps will create station duopolies and strengthen its presence in the West. We believe that the move will create significant efficiencies for both companies, eliminating back office, duplicative, and overhead costs. This will be an even swap with no cash compensation to either party. 

FCC fast track? The FCC has signaled its willingness to fast track the regulatory process, likely to provide a “waiver” to create duopolies rather than to seek a longer review/rulemaking process. As such, we believe that the transaction could be completed by year end. 


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This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Snail (SNAL) – Noble Virtual Conference Highlights

Posted on by slightbourne@noblecapitalmarkets.com


Friday, June 13, 2025

Snail is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs and mobile devices.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Noble Virtual Conference. On June 4, the company presented at the Noble Virtual Conference to the investment community. The presentation conducted by Heidy Chow, CFO, and Peter Lin, Sr. Manager, FP&A, highlighted the company’s release roadmap, unique product offerings, and portfolio diversification. A replay of the presentation can be viewed here.

Favorable release roadmap. The company has a busy release roadmap for 2025, which includes a 10th-anniversary expansion pack for ARK: Survival Evolved, a new expansion pack for ARK: Survival Ascended, and the release of Bellwright on Xbox in Q4. Additionally, nine new gaming titles are slated for 2025, including Robots at Midnight, Honeycomb, and Echoes of Elysium, which could have breakout potential. Additionally, the company recently expanded into new entertainment categories to further expand its portfolio.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

GDEV (GDEV) – Strategic Initiatives Gain Traction

Posted on by slightbourne@noblecapitalmarkets.com


Thursday, June 12, 2025

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Solid Q1 Results. The company reported Q1 revenue of $97.0 million and adj. EBITDA of $15.6 million, both of which easily surpassed our estimates of $87.0 million and a loss of $0.6 million, respectively. Notably, while revenue decreased 9% from last year, adj. EBITDA was up substantially from a loss of roughly $1.0 million. The improvement in adj. EBITDA was largely driven by the company’s efficient use of marketing spend and focus on profitability.

Key operating metrics. Bookings and monthly paying users decreased by 25% and 26%, respectively, compared to the prior year period, but the decrease was expected as the company is focused on improving the quality of gameplay and not over-monetizing its user base. For example, average bookings per paying user (ABPPU) increased from $88 in Q1’24 to $90 in Q1’25, despite a decrease in monthly paying users. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Townsquare Media (TSQ) – We Don’t Live In That Neighborhood

Posted on by slightbourne@noblecapitalmarkets.com


Tuesday, June 10, 2025

Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Highlights from Noble’s Emerging Growth Virtual Conference. This report highlights Townsquare Media’s participation in Noble’s Virtual Equity conference June 4 & 5th. Bill Wilson, CEO, Stuart Rosenstein, CFO, and Claire Yanicay, Executive VP IR, provided insights on the company’s Digital strategy and favorable revenue and growth outlook. In addition, management highlighted its goal to reduce debt leverage. A rebroadcast is available here.  

Digital to approach 70% of total company revenues. Currently, Digital accounts for roughly 55% of total company revenues and 55% of cash flow. Management indicated that Digital should continue to grow at favorable growth rates, with expected small declines in its legacy broadcast business. As such, management stated that total Digital revenues should approach 70% of total company revenue and cash flow contributions in the long term. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Direct Digital Holdings (DRCT) – There Is A Path Forward

Posted on by slightbourne@noblecapitalmarkets.com


Tuesday, May 20, 2025

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Taking the necessary steps to remain listed. The company faces a two pronged battle to remain listed on the NASDAQ. On one front, it must address the shareholder equity deficiency. And, on the other front, it must address the stock price, which is trading below $1. We view the issues separately and believe that the company has a strategy to remain listed on both fronts. 

Addressing the shareholder deficit. The company has a program to raise capital through an equity reserve facility to address its shareholder deficit issue to comply with a NASDAQ requirement. To date, the company has raised $7 million on its $20 million facility. The company could raise even more capital when it becomes S3 eligible at the end of Summer. Currently, the company is $23 million short of turning shareholder equity positive. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

GDEV (GDEV) – Off To A Strong Start

Posted on by slightbourne@noblecapitalmarkets.com


Monday, May 19, 2025

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Strong Q1 Results. The company reported Q1 revenue of $97.0 million and adj. EBITDA of $15.6 million, both of which easily surpassed our estimates of $87.0 million and a loss of $0.6 million, respectively, as illustrated in Figure #1 Q1 Results. Notably, while revenue decreased 9% from last year, adj. EBITDA was up substantially from a loss of roughly $1.0 million. The improvement in adj. EBITDA was largely driven by the company’s efficient use of marketing spend and focus on profitability.

Key operating metrics. Notably, while bookings and monthly paying users decreased by 25% and 26%, respectively, compared to the prior year period, the decrease was largely expected as the company is focused on improving the quality of gameplay and not over-monetizing its user base. For example, average bookings per paying user (ABPPU) increased from $88 in Q1’24 to $90 in Q1’25, despite a decrease in monthly paying users. 


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – Orange 142 Releases “Digital Audio Best Practices Guide” to Help Marketers Maximize Reach in a Rapidly Evolving Audio Landscape

Posted on by slightbourne@noblecapitalmarkets.com

Research News and Market Data on Direct Digital

May 01, 2025 9:00 am EDT

New resource offers insights, strategies, and tips to build measurable digital audio campaigns

AUSTIN, Texas, May 1, 2025 /PRNewswire/ — Orange 142, LLC (“Orange 142”), a division of Direct Digital Holdings (Nasdaq: DRCT) and a leading digital marketing agency for mid-market brands and agencies, today announced the release of its Digital Audio Best Practices Guide. Developed by Orange 142’s Emerging Channels Council, the guide provides marketers with the strategic frameworks and practical insights to leverage digital audio as a performance-driving channel fully.

Digital audio is becoming more popular, with over 228 million Americans tuning in monthly across podcasts, streaming music, and internet radio. As this channel grows, it offers advertisers new opportunities to connect with highly engaged audiences through data-driven, programmatic campaigns.

“With this guide, we’re giving marketers of any size a playbook to fully tap into the power of digital audio—an environment where audiences are deeply engaged and often unreachable through other media,” said Lindsey Wilkes, SVP, Business Development and head of the Emerging Channels Council. “Whether listeners commute, work out, or cook dinner, digital audio offers rare, screen-free moments to deliver hyper-relevant messages. It’s not just about being heard—it’s about building brand presence in the everyday routines where loyalty is shaped.”

The guide explores:

  • The current opportunity in digital audio, including key audience and spend trends
  • The unique advantages of digital audio include precision targeting, immersive storytelling, and lower fraud risks
  • Industry challenges such as platform fragmentation, measurement limitations, and privacy regulations
  • Emerging trends, including AI-driven optimization, spatial audio, and programmatic growth
  • Privacy best practices for responsible targeting and consent management
  • Advanced approaches to measurement that move beyond basic exposure metrics to deliver meaningful attribution insights
  • Practical implementation strategies for audio creative, campaign optimization, and cross-channel alignment

“Digital audio combines the power of storytelling with the precision of digital targeting,” added Lindsey Wilkes. “But success requires more than just buying inventory—it takes intentional creative strategy, cross-device measurement, and a deep understanding of the audio landscape. With this guide, we deliver everything in one place for marketers.”

The Digital Audio Best Practices Guide is part of a broader initiative from the Orange 142 Emerging Channels Council, which serves as a thought leadership hub for helping independent brands and agencies explore innovative and underutilized advertising channels. The Council helps marketers unlock new growth opportunities through sustainable and scalable media strategies by providing access to education, collaboration, and actionable tools.

To download the Digital Audio Best Practices Guide or explore additional Emerging Channels resources, visit: orange142.com/emerging-channels-hub

About Orange 142
Orange 142 is a digital marketing and advertising company helping businesses and agencies of all sizes grow their reach and revenue through strategic, data-driven media execution. As the buy-side arm of Direct Digital Holdings (Nasdaq: DRCT), Orange 142 delivers customized solutions across programmatic, search, social, connected TV, and emerging digital channels. With deep expertise in high-growth sectors such as Travel & Tourism, Healthcare, Energy, and Financial Services, Orange 142 creates results-driven campaigns that connect brands with their most valuable audiences.

To learn more, visit www.orange142.com

Cumulus Media (CMLS) – Revenue Visibility Remains Elusive

Posted on by slightbourne@noblecapitalmarkets.com


Friday, February 28, 2025

Cumulus Media (NASDAQ: CMLS) is an audio-first media company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. Cumulus Media engages listeners with high-quality local programming through 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Results in-line with expectations. The company reported Q4 revenue of $218.6 million, in line with our estimate of $219.0 million, and adj. EBITDA of $25.0 million, which was better than our estimate of $21.5 million. In our view, the quarter is illustrative of the company’s successful efforts to reduce costs and drive efficiencies, while managing the impact of macroeconomic headwinds and secular challenges on its businesses.

Continued weak revenue outlook. Management provided revenue pacings of a decline in the mid single digits for Q1 2025, slightly softer than our expectations. The company is being adversely affected by weak local and National spot advertising and headwinds from a loss of flagship podcast programming. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Townsquare Media (TSQ) – New Credit Agreement Provides A Long Run Way

Posted on by slightbourne@noblecapitalmarkets.com


Tuesday, February 25, 2025

Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

New credit agreement. On February 19, 2025, the company entered into a five year $490 million credit agreement with Bank of America. The agreement is comprised of a $470 million term loan and a $20 million revolving credit facility, both of which mature on February 19, 2030. Notably, we believe the favorable agreement provides the company with a long runway and should assuage investor debt refinancing concerns.

Termination of old agreement. The company utilized net proceeds from the new credit agreement and its cash position to immediately retire its prior credit agreement. As such, $453 million from the term loan and roughly $10 million from the revolving credit facility were used to retire the outstanding $467.4 million 6.875% senior secured notes that were due in 2026.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – Saga Communications, Inc. Reports 3rd Quarter 2024 Results

Posted on by aweinsoff@channelchek.com

Research News and Market Data on SGA

Nov 7, 2024

PDF Version

GROSSE POINTE FARMS, Mich., Nov. 07, 2024 (GLOBE NEWSWIRE) — Saga Communications, Inc. (Nasdaq – SGA) (the “Company” or “Saga”) today reported that net revenue decreased 3.5% to $28.1 million for the quarter ended September 30, 2024 compared to $29.1 million for the same period last year. Station operating expense increased 3.1% for the quarter to $23.5 million compared to the same period last year. For the quarter, operating income was $1.6 million compared to $3.5 million for the same quarter last year and station operating income (a non-GAAP financial measure) decreased 21.2% to $6.0 million. Capital expenditures were $625 thousand for the quarter compared to $760 thousand for the same period last year. We had net income of $1.3 million for the quarter compared to net income of $2.7 million for the third quarter last year. Diluted earnings per share were $0.20 in the third quarter of 2024.

On a same station basis for the three months ended September 30, 2024 net revenue decreased 5.8% to $27.5 million and station operating expense decreased 0.3% to $22.7 million while operating income decreased 49.7% to $1.8 million.

Net revenue decreased 2.5% to $81.5 million for the nine-month period ended September 30, 2024 compared to $83.6 million for the same period last year. Station operating expense increased 4.7% for the nine-month period to $70.0 million compared to the same period last year. For the nine-month period, operating income was $1.4 million compared to $8.7 million and station operating income (a non-GAAP financial measure) decreased 25.2% to $15.2 million. Capital expenditures for the nine-months were $3.2 million compared to $3.4 million for the same period last year. Net income was $2.2 million for the nine-month period compared to $7.0 million for the same period last year. Diluted earnings per share were $0.35 in the nine-months of 2024.

On a same station basis for the nine months ended September 30, 2024 net revenue decreased 3.6% to $80.6 million from last year and station operating expense increased 3.2% to $69.0 million while operating income decreased 83.4% to $1.4 million.

The Company paid a quarterly dividend of $0.25 per share on October 18, 2024. The aggregate amount of the quarterly dividend was approximately $1.6 million. To date Saga has paid over $133 million in dividends to shareholders since the first special dividend was paid in 2012. The Company intends to pay regular quarterly cash dividends in the future. Consistent with its strategic objective of maintaining a strong balance sheet and with returning value to our shareholders, the Board of Directors will also continue to consider declaring special cash dividends, variable dividends and stock buybacks in the future.

The Company’s balance sheet reflects $28.7 million in cash and short-term investments as of September 30, 2024 and $28.0 million as of November 4, 2024. The Company currently has $5.0 million drawn against its $50.0 million revolving credit facility. The Company expects to spend approximately $4.0 – $4.5 million for capital expenditures during 2024.

Saga’s 2024 Third Quarter conference call will be held on Thursday, November 7, 2024 at 11:00 a.m. Eastern time. The dial-in number for the call is (973) 528-0008. Enter conference code 674708. A recording and transcript of the call will be posted to the Company’s website as soon as it is available after the call.

The Company requests that all parties that have a question that they would like to submit to the Company please email the inquiry by 10:00 a.m. Eastern time on November 7, 2024 to SagaIR@sagacom.com. The Company will discuss, during the limited period of the conference call, those inquiries it deems of general relevance and interest. Only inquiries made in compliance with the foregoing directions will be discussed during the call.

Saga utilizes certain financial measures that are not calculated in accordance with generally accepted accounting principles (GAAP) to assess its financial performance. The attached Selected Supplemental Financial Data tables disclose “actual”, “same station”, and “proforma” financial information as well as the Company’s reconciliation of non-GAAP measures: GAAP operating income to station operating income, GAAP net income to trailing twelve-month consolidated EBITDA and actual operating results to same station operating results as well as other financial data. The actual financial information reflects our historical financial results and include the results of operations for stations that we did not own for the entire comparable period. The same station financial information reflects only the results of operations for stations that we owned for the entire comparable period. The proforma financial information assume all acquisitions in 2024 occurred as of January 1, 2023. Such non-GAAP measures include same station financial information, pro forma financial information, station operating income, trailing 12-month consolidated EBITDA, and leverage ratio. These non-GAAP measures are generally recognized by the broadcasting industry as measures of performance and are used by Saga to assess its financial performance including, but not limited to, evaluating individual station and market-level performance, evaluating overall operations, as a primary measure for incentive-based compensation of executives and other members of management and as a measure of financial position. Saga’s management believes these non-GAAP measures are used by analysts who report on the industry and by investors to provide meaningful comparisons between broadcasting groups, as well as an indicator of their market value. These measures are not measures of liquidity or of performance in accordance with GAAP and should be viewed as a supplement to and not as a substitute for the results of operations presented on a GAAP basis including net operating revenue, operating income, and net income. Reconciliations for all the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the Selected Supplemental Financial Data tables.

This press release contains certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that are based upon current expectations and involve certain risks and uncertainties. Words such as “will,” “may,” “believes,” “intends,” “expects,” “anticipates,” “guidance,” and similar expressions are intended to identify forward-looking statements. The material risks facing our business are described in the reports Saga periodically files with the U.S. Securities and Exchange Commission, including, in particular, Item 1A of our Annual Report on Form 10-K. Readers should note that forward-looking statements may be impacted by several factors, including global, national, and local economic changes and changes in the radio broadcast industry in general as well as Saga’s actual performance. Actual results may vary materially from those described herein and Saga undertakes no obligation to update any information contained herein that constitutes a forward-looking statement.

Saga is a media company whose business is devoted to acquiring, developing and operating broadcast properties with a growing focus on opportunities complimentary to our core radio business including digital, e-commerce and non-traditional revenue initiatives. Saga owns or operates broadcast properties in 28 markets, including 82 FM, 32 AM radio stations and 79 metro signals. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacom.com.

Contact:
Samuel D. Bush
(313) 886-7070

View Full Release Here.

Saga Communications (SGA) – Political A Big Swing Factor

Posted on by slightbourne@noblecapitalmarkets.com


Friday, August 09, 2024

Saga Communications, Inc. is a broadcast company whose business is primarily devoted to acquiring, developing and operating radio stations. Saga currently owns or operates broadcast properties in 27 markets, including 79 FM and 33 AM radio stations. Saga’s strategy is to operate top billing radio stations in mid sized markets, defined as markets ranked (by market revenues) from 20 to 200. Saga’s radio stations employ a myriad of programming formats, including Active Rock, Adult Album Alternative, Adult Contemporary, Country, Classic Country, Classic Hits, Classic Rock, Contemporary Hits Radio, News/Talk, Oldies and Urban Contemporary. In operating its stations, Saga concentrates on the development of strong decentralized local management, which is responsible for the day-to-day operations of the stations in their market area and is compensated based on their financial performance as well as other performance factors that are deemed to effect the long-term ability of the stations to achieve financial objectives. Saga began operations in 1986 and became a publicly traded company in December 1992. The stock trades on NASDAQ under the ticker symbol “SGA”.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Delivers on expectations. The company reported Q2 revenue of $28.7 million and adj. EBITDA of $4.4 million, both of which were in line with our estimates of $28.8 million and $4.6 million, respectively as illustrated in Figure #1 Q2 Results. Notably, the revenue estimate was achieved in spite of weaker than expected Political advertising. 

Pacings appear weak. Management indicated that Q3 revenues are pacing down mid single digits, which, we believe, may be conservative given that there is limited visibility on Political advertising. The weak revenue outlook reflects, however, lackluster core advertising which appears to be impacted by the current macroeconomic headwinds.  


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