Salem profits slip on higher expenses


Salem CommunicationsRevenue was up at religious radio specialist Salem Communications, but the company’s expenses were up even more, leading to a loss in operating income. Meanwhile, the company is waiting to reel in Tampa acquisition WLCC-AM.

The revenue increased 3.9% from $55.4M to $57.6M, while operating expenses – including results of asset disposals and impairment chargers, increased 5.8% from $45.4M to $48M.

The result was a 61.1% decrease in operating income from $9.9M to $3.9M.
That figure includes broadcast, internet and publishing operations. Looking at broadcast alone, the company realized a revenue gain of 2.1% to $46.4M while dropping 3.1% on the operating income line to $15.9M.

Figures were similar on a same-station basis, with revenue increasing 1.9% to $46.2M and operating incline decreasing 3.1% to $15.9M.

The WLCC acquisition was entered into in May and is valued at $1.2M.

Looking ahead, Salem is expecting an increase in total revenue in the 3%-5% range beyond the $54.5M record during Q3 2011, and is also looking for a 2%-5% increase in operating expense (before gain or loss on disposal of assets, terminated transaction costs and abandoned license upgrades and impairments)