Salem Media Group on Wednesday released its fiscal report card for the first quarter of 2025. Like many companies, net broadcast revenue declined, fueling a wider net loss in the three-month period. Unlike many of its peers, its net digital media revenue was slightly down in Q1.
For the quarter, Salem’s net broadcast revenue declined to $39.84 million, from $46.1 million. While that’s not so surprising, given the economic instability creating ad revenue turbulence for a host of radio broadcasters across the U.S., the company’s net digital media revenue slipped to $10.22 million, from $10.71 million.
For companies such as Entravision and Townsquare Media, digital growth is keeping the dollars flowing. Even for audio content creation and distribution leader iHeartMedia, the digital story is a positive one amid core challenges. As such, Salem’s dip could be particular noteworthy to analysts and shareholders. Here’s the good news: Digital Advertising revenue was up, growing to $11.52 million from $10.9 million. Digital streaming dollars dipped to $1.84 million, from $2.26 million, while digital subscription revenue was $4.64 million, shifting from $4.78 million in Q1 2025.
With net publishing revenue down to $1.65 million from $1.8 million, consolidated net revenue slipped to $51.7 million, from $58.61 million.
Total operating expenses were $61.01 million, slightly higher than the $60.64 million seen in Q1 2024 due to a $3.69 million restructuring cost.
And, it was the restructuring charge that fueled the widening net loss to $7.13 million (-$0.24 per share), from $5.18 million (-0.19 cents).
On a same-station basis, expenses were nearly equal to revenue, resulting in Station Operating Income (SOI) of just $10.
Adjusted EBITDA came in at -$4.66 million, compared to $1.15 million in Q1 2024.
In a SEC filing, Salem explained the challenges it is experiencing with its radio station core advertising by noting, “Spot advertising revenue has been declining in the industry due to reduced time spent listening, particularly on AM radio stations.”
At the same time, Network revenue from Salem’s nationally syndicated programs decreased $0.3 million, excluding political revenue, and national and local block programming revenue decreased by $500,000 primarily in its Christian Teaching and Talk format radio stations.
Now trading on the Over-The-Counter “OTCQX” marketplace, Salem Media Group shares were down by nearly 9% as of 2:16pm Eastern on May 14, to $1.12 per share. That said, it’s been an exceptional month of trading for “SALM,” doubling in value since mid-May. Furthermore, “SALM” was a largely moribund 20 cents per share issue until the start of 2025, as the incoming Trump Administration began to coalesce and investors believed the conservative-leaning media company had much growth ahead.
Of Salem’s institutional investors, the largest is Mink Brook Asset Management LLC, which holds 2% of outstanding shares.
