Wednesday, May 10, 2023
Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
In-line Q1 results. The company reported Q1 revenue of $63.5 million, beating our estimate of $62 million by 2.4%. Revenue in the quarter was driven by slightly better than expected broadcast and publishing revenues. Adj. EBITDA of $1.4 million was largely in line with our estimate of $1.7 million.
Sizeable cost reductions. The company eliminated $5 million in annualized costs in the first quarter. The savings were included in management issued guidance for Q2 and full year 2023, and are expected to have an equal impact in each quarter moving forward. We believe that the company is managing cash flow while investing in its Digital businesses and into Salem News.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
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