The third quarter results for Salem Media Group were released following the Closing Bell on Wall Street Monday. Like its peers, the three-month period ending September 30 was a downbeat one. And, like many of the radio industry’s other publicly traded companies, the fourth quarter of 2023 is proving to be difficult, too.
In Q3, net broadcast revenue fell to $48.97 million from $51.14 million as total revenue declined to $63.5 million from $66.86 million.
That fell short of the consensus estimate of $65.23 million offered by two analysts that cover Salem and reported their projections to Yahoo! Finance.
Meanwhile, broadcast operating expenses rose to $42.17 million, from $41.18 million, while a non-cash impairment charge of $35.11 million was taken during the quarter.
Because of the impairment charge, Salem’s net loss widened to $31.3 million (-$1.15 per share) from $11.89 million (-$0.44).
The non-GAAP Station Operating Income (SOI) figure dropped to $6.8 million, from $9.96 million.
Digital Media Operating income, meanwhile, was also down; other radio broadcasting companies enjoyed year-over-year quarterly growth for digital. At Salem, the Q3 2023 total was $1.47 million, down from $1.86 million a year ago.
Yet, adjusted EBITDA grew for Salem in Q3, rising to $2.51 million from $2.3 million.
That’s where the good news ends, however, as Salem in Q4 is projecting total revenue to decline between 6% and 8%. The guidance assumes the closing of the pending sale of Salem Church Products in Q4.
Salem has some $180 million in debt, highlighted by a $159.42 million outstanding balance for its Senior Secured Notes due 2028.