Friday, November 13, 2020
Salem Media (SALM)
A Nice Political Boost; Raising Estimates
Salem Media Group is America’s leading radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values. In addition to its radio properties, Salem owns Salem Radio Network, which syndicates talk, news and music programming to approximately 2700 affiliates; Salem Radio Representatives, a national radio advertising sales force; Salem Web Network, a leading Internet provider of Christian content and online streaming; and Salem Publishing, a leading publisher of Christian themed magazines. Salem owns and operates 115 radio stations, with 73 stations in the nation’s top 25 top markets – and 25 in the top 10. Each of our radio properties has a full portfolio of broadcast and digital marketing opportunities.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A solid quarter. The company exceeded both revenue and cash flow expectations in its third quarter results, driven in part by strong Political advertising. Total company revenues were $60.6 million, 6% better than our $57.1 million estimate. Cash flow, as measured by adjusted EBITDA, was $9.6 million, a strong 25% above our $7.7 million estimate.
A Political boost. The latest results benefited from extraordinary Political advertising, which was $1.9 million. Political was well ahead of the mid term elections in Q3 2018 at $1.2 million and the last general election in Q3 2016 of $1.5 million. Management indicated that Q4 Political advertising will be north of $2 million, which will likely get another boost from the run-off Senate elections …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.