Salem Media Group’s Q3 2023 results echo what has been a common thread through radio this earnings call season: decline. CEO David Santrella provided a candid overview of the broadcast division’s 4.2% revenue dip alongside digital. This echoed the broader challenges felt across the radio industry due to economic pressures and higher interest rates.
In total, Salem reported net broadcast revenue at $48.97 million, down from $51.14 million, and total revenue fell to $63.5 million from $66.86 million.
Broadcast revenue’s year-over-year shortcomings were primarily influenced by political advertising comparisons. Spot advertising took a hit, with national spot revenue down nearly 18% and local spot sliding over 6%. Network revenue also saw a double-digit percentage drop. Digital revenue, usually a growth area, fell by 4.5% this quarter, a stall that Salem hopes to overcome with a projected return to double-digit digital growth in the next quarter.
Santrella announced completed sales and pending agreements that could infuse Salem with fresh capital, easing the current leverage and aiding in offsetting the group’s $179.9 million debt load, with a notable $159.42 million outstanding balance due in 2028. The anticipated asset sales are also expected to help resolve the default on Salem’s asset-based loan facility.
Looking ahead to the fourth quarter, Salem anticipates a total revenue decline of between 6% to 8%, factoring in the expected sale of Salem Church Products to Gloo. The transaction includes a $10 million multi-year advertising agreement. CFO Evan Masyr highlighted the need for aggressive debt reduction and improvement in new business ventures.
