Add Salem Media Group to the list of broadcasting companies that are experiencing a decline in their net broadcast revenue as they seek to find pathways to new digital riches. In Q3, digital media revenue was down by a mere $343,000. Broadcast revenue? That declined by 11.6%.
With no commentary, as Salem trades as an over-the-counter stock and is not bound by Securities & Exchange Commission disclosures, the company’s Chief Financial Officer — Evan Masyr — distributed a 41-page PDF full of charts and numbers.
In it, Salem shares that its total net revenue was down to $51.3 million, from $58.72 million, as it took a cue from peers such as Beasley Media Group by slashing expenses. For Q3, Salem’s expenses were trimmed to $57.66 million from $63.06 million, thanks to belt-tightening in its broadcast operations while publishing costs were greatly reduced due to cyclical revenue shifts. Digital media operating expenses were slightly higher, coming in at $9.57 million and climbing from $9.56 million.
The end result? Salem’s net loss was cut to $2.3 million (-$0.07 per share) in Q3, compared to $6.62 million (-$0.24 per share) in the same period of 2024.
Hello Evan… You did good writing!
Salem has 2 intractable major problems – Based on their stations having 2 major programming components:
1. Far right wing syndicated talk programming… certainly, a loyal audience. But the demographics for this programming, are considerably 65 years and older. This is an age group that most mainstream advertisers have zero interest in.
2. Salem stations make huge profit margins on their “plug and play” paid Christian radio infomercials. Pastors typically buy these program blocks to solicit money from the listeners. But, much of this revenue-raising by the churches has now migrated to online. … and
using revenue-raising infomercials is a dying model. Much much better ROI when online solicitation is used.
These two major issues are ongoing challenges. The verdict is out, as to whether either problem is solvable. And they absolutely impact the financial ongoing viability of Salem.
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