As the company continues to divest properties during a turbulent year, Salem Media Group has reported a mixed, yet promising, financial performance for Q2 2024, showing a rebound in net income despite a downturn in total revenues thanks to savvy sales.
Salem recorded a net income of $2.29 million for Q2, marking a significant recovery from a loss of $7.09 million in Q2 2023.
Total net revenue for the quarter was $60.61m, down from $65.77m in 2023, with decreases across various segments. Broadcast revenue dropped to $47.11m from $49.68m, but was balanced off by digital media revenue, which rose from $10.86m to $11.94m.
Following the sale of Salem’s suffering Regnery Publishing imprint, publishing revenue saw a sharp decline from $5.23m to $1.56m due to a decrease in production. Operating expenses were notably reduced to $54.93m from $69.88m, contributing to the operating income of $5.68m – a significant improvement from an operating loss of $4.10m in the prior year.
Salem Media success for Q2 2024 can also be attributed in part to several major divestments.
In June, Salem sold three Nashville stations and one in Honolulu to Educational Media Foundation for $7.0 million. Earlier that month the broadcaster disposed of land in Apopka, Florida for $600,000, resulting in a pre-tax loss of $300,000, reflecting a decrease from the land’s previous value. Salem also divested an FM translator in Greenville, SC, site for $400,000 on June 1, 2024.
In May, Salem completed a leaseback deal for its corporate headquarters building, selling the property for $5.5 million. The company will continue to operate from this location under a five-year lease, for $400,000 annually.
They also had a massive reduction in workforce in Q2. It’s misleading to say they had a “promising financial performance.” Broadcast revenue is down significantly, and the only gains to show are from sell offs and lay offs. They aren’t turning profit from actual business sales, only reductions. What happens at the close of Q4 later this year when they have sold more assets and achieved another, “workforce reduction?” Having a constant estate sale doesn’t make them a profitable media company.