For the second quarter of 2023, the company is projecting total revenue to decline between 5% and 7% year-over-year.
That’s the downbeat forecast from Salem Media Group, which swung to a net loss in Q1 2022 and missed earnings per share estimates from the three analysts that presently cover the company.
With Q2 already in full swing and many companies discussing macroeconomic uncertainties, Salem not only sees its revenue on the downswing but expenses climbing by 3%-6% in the quarter ending June 30, compared to last year.
In the first quarter, Salem net broadcast revenue was statistically flat, moving to $48.34 million from $48.43 million. Net digital media revenue increased to $10.51 million from $10.3 million. It was a good quarter for the publishing division, too, as revenue in that segment grew to $4.67 million from $3.88 million.
This put total revenue at $63.49 million, up from $62.61 million. The consensus estimate was for revenue of $62.09 million.
But, operating expenses surged to $67.67 million from $57.64 million, accelerating in the broadcast and publishing divisions. There was also a non-cash impairment charge of $2.12 million in Q1 2023.
Add it all up, and Salem suffered a Q1 2023 net loss of $5.154 million (-$0.19 per share), compared to net income of $1.74 million ($0.06) in Q1 2022.
The analysts polled by Yahoo! Finance anticipated a Q1 EPS loss of 12 cents per share.
Meanwhile, Salem has less cash on hand, with $28.47 million at the end of Q1 2023 compared to $30.76 million at the close of 2022. Long-term debt grew to $152.04 million from $150.37 million; however that pales in comparison to some other broadcast media companies, including iHeartMedia.
On a same-station basis, net broadcast revenue decreased to $48.14 million from $48.39 million while same-station Station Operating Income dipped to $6.01 million from $10.3 million. Adjusted EBITDA declined to $1.4 million from $6.84 million.
