Friday, May 07, 2021
Salem Media (SALM)
Steady As She Goes
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.
Q1 exceeds expectations. Total company revenues increased 1.9% to $59.4 million versus our $56.4 million estimate. Cash flow, as measured by adjusted EBITDA, beat expectations as well, $7.9 million versus our estimate of $4.9 million. Each of the company’s operating segments performed better than our expectations, with the largest upside in its Publishing division.
Favorable Q2 outlook. Management indicated that Q2 revenues are expected to increase between 13% and 15%, which is slightly better than our expectations. Expense growth guidance between 6% and 9% is a little higher than we have modeled. As such, while we are raising our Q2 revenue estimate, we are tweaking lower our Q2 adj. EBITDA …
This Company Sponsored 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.
