Link Media had a solid 2024 but Link Media’s parent Boston Omaha has hit pause on acquisitions.  Here is a review of Boston Omaha’s 2024 10k and 2024 annual letter, sponsored and analyzed by SignValue.

A textbook case of scale economies

This chart shows the steady improvement of Link Media’s performance as the company takes advantage of scale economies.  Revenues grow faster than expenses and margins improve.

• Revenues grew 5.4% in 2024 with 4% of the improvement coming from increases in rates and occupancy and 1% of the improvement coming from acquisitions.
• Land costs declined from 19.7% of revenue in 2022 to 18.3% or revenue in 2024.
• Overhead declined from 6.6% of revenue in 2022 to 6.4% of revenue on 2024.
• Adjusted EBIDTA increased by 10% to $17.6 million in 2024.  Link Media’s 2024 adjusted EBIDTA margin of 39% is above OUTFRONT (24%)  and CCO (30%) and only trails Lamar (45%).
• Capital expenditures were $2.4 million during 2024 as Link Media converted 6 static faces to digital, purchased 3 easements and built 5 new structures with 12 new faces.  Link Media made no acquisitions during 2024.

Link Media is making fewer acquisitions

The Boston Omaha annual letter explains that Link Media isn’t making acquisitions because prices aren’t good and there are higher returns at other Boston Omaha businesses: “We have been far less active over the past two years.  One reason is simply fewer tuck-in opportunities have been for sale…A second reason is the opportunity within our broadband business where we believe we can earn a higher return on capital over a 5 year period through…fiber builds…Over time we will never be able to control when tuck-in acquisitions are available at reasonable prices…”

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