With only a 2% increase in expenses, operating income for small TV division jumps 51%.
Saga Communications’ small TV station unit today posted net revenue for the second quarter of $4.3 million, up 9.5% from $3.9 million in the same quarter a year ago. Operating income totaled $918,000, up 51% from $609,000.
Saga is primarily a radio broadcasting company. Only about 11% of its revenue comes from its small-market TV station group, which comprises KOAM Joplin, MO-Pittsburg, Kan. (DMA 145); WXVT Greenwood-Greenville, Miss. (DMA 182); and KAVU and KVCT Victoria, Texas (DMA 205). Saga also operates a second station in Joplin-Pittsburg, KFJX, under a shared services agreement and owns four low-power TV stations in the Victoria market.
Overall, TV and radio included, Saga Communications said that second-quarter net operating revenue increased 0.5% over the comparable period in 2005 to $37.8 million and operating income increased 3.8% to $8.9 million. Net income increased $900,000 to $4 million for the quarter compared to $3.1 million for the comparable period in 2005.
Saga owns or operates 58 FM and 30 AM radio stations, three state radio networks and two farm radio networks. It also has pending the purchase of an FM station serving the Asheville, N.C., radio market.
Capital expenditures in the second quarter were $2.8 million, of which $300,000 was as a result of acquisitions, $600,000 was related to digital radio and $500,000 was related to digital television.