Salem Media Group waited until after the closing bell to release its Q2 2023 financials on Tuesday, revealing mixed results alongside a quarterly loss. With total revenue down and operating expenses up, it’s a reflection of the troubled situation where radio sits halfway through the year.
Total revenue for the second quarter decreased by 4.2% to $65.8 million, down from $68.7 million in the same period of the previous year. Operating expenses increased by 13.9% to $69.9 million, and the company reported an operating loss of $4.1 million. The net loss for the quarter was $7.1 million or $0.26 net loss per share, compared to a net income of $9.1 million in 2022.
Salem’s broadcast division experienced a decrease in net revenue of 5.3% to $49.7 million. Station Operating Income took a nose-dive, dropping 43.5% to $6.2 million. The digital media segment slightly increased its revenue by 0.5% to $10.9 million. However, Digital Media Operating Income fell by 27.5% to $1.8 million.
Publishing revenue declined by 3.5% to $5.2 million, and the operating loss increased to $0.8 million.
Q2 losses now put Salem’s total revenue for the first half of 2023 at $129.3 million, with an operating loss of $8.3 million and a net loss of $12.2 million.
The company discussed its recent sale of radio stations KNTS-AM and KLFE-AM in Seattle, and a rental income purchase agreement for its Greenville, South Carolina transmitter site. The company also entered into an agreement to sell radio station KSAC in Sacramento, California, pending approval from the FCC.
For the third quarter, Salem projects total revenue to decline between 3% and 5%, but excluding the impact of 2022 political revenue, the projected decline narrows to between 1% and 3%. The company also anticipates Recurring Operating Expenses to fluctuate between a decrease of 1% and an increase of 2% compared to the same quarter in the previous year.
