Salem Has Net Loss; Same-Station Revenue Up

Salem Communications said its first quarter was one of “industry-leading growth.”
Its net broadcasting revenue increased 8.4% to $38.7 million compared to last year’s first quarter. It had operating income of $3.2 million, compared with $4.2 million for the same period last year, and it reported a net loss of $6.1 million for the quarter, or a loss of 26 cents per share, compared with a net loss of $1.8 million, or 8 cents per share, last year.
The net loss for this quarter included a one-time loss of $4 million as a result of the early retirement of debt.
Station operating income increased 12.7% to $12.4 million. Station operating margin increased to 31.9% in the first quarter of 2003 from 30.9%.
On a same-station basis, net broadcasting revenue and station operating income increased 7.8% to $38.5 million and 11.8% to $12.3 million, respectively, compared to the first quarter of 2002.
“Same station results have been favorably impacted by revenue and station operating income growth from our contemporary Christian music radio stations,” it stated.
Looking ahead, the company said, “Salem achieved same-station revenue growth of 9% for April and expects to achieve high single-digit revenue growth for May.” It said it expects Q2 same-station revenue growth in the high single digits.