CCM Exit Echoes As Salem Posts Q1 Broadcast Revenue Decline

Salem Media Group posted a $7.1 million net loss for the first quarter of 2025, as the company continues to adjust following its full exit from the CCM format at the end of last year. The loss represents a dip compared to the $5.2 million loss recorded in Q1 2024, yet extenuating circumstances may shoulder the blame.

On December 30, Salem finalized the $80 million sale of its remaining seven CCM stations to Educational Media Foundation, officially retiring its “Fish” brand in major markets including Atlanta, Los Angeles, Dallas, Cleveland, Sacramento, Portland, and Colorado Springs. Under the agreement, EMF began operating the stations through a $10 million marketing deal, airing its K-LOVE or Air1 networks depending on market demand.

The divestment marked a strategic pivot, narrowing Salem’s format focus and reshaping its broadcast portfolio. In addition to the flagship sell-off, the company sold four more CCM outlets earlier in 2024: three “94 FM The Fish” stations in Nashville (WBOZ, WFFH, WFFI) and Honolulu’s KAIM for $7 million, and Little Rock’s KKSP for $1.55 million to Encouragement Media Group.

That sale, in tandem with an unstable economic outlook in the US, contributed to a year-over-year 13.6% broadcast revenue decline, from $46.1 million in Q1 2024 to $39.8 million in Q1 2025. Publishing revenue dipped slightly to $1.6 million, while digital media held steady at $10.2 million. Overall net revenue fell 11.8%, landing at $51.7 million.

While total operating expenses remained flat at $61.0 million, Salem incurred $3.7 million in restructuring costs, a line item absent from Q1 2024. Unallocated corporate expenses rose to $5.1 million, up more than 7% from the prior year, suggesting higher transitional overhead following the CCM exit. The quarter also included a $1.9 million loss on the disposition of assets, likely tied to the late-2024 station sales. Depreciation and amortization totaled $2.3 million and $352,000, respectively.

Salem’s operating loss for the quarter was $9.3 million, widening from the $2.0 million loss a year earlier. The company’s net interest expense dropped substantially to $387,000, helped by a $253,000 gain on debt restructuring. After a $2.2 million income tax benefit, the final net loss stood at $7.1 million.

The company did not provide any additional guidance for the remainder of the year ahead.