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Salem Media (SALM) – Favorable Operating Momentum; Raising Target Price

Media and Marketing
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Friday, November 05, 2021

Salem Media (SALM)
Favorable Operating Momentum; Raising Target Price

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.

    Q3 beats expectations. Salem Media reported $65.9 million in total revenues, up 8.8% over the prior year quarter and exceeding our $62.0 million estimate. The Broadcast segment was the main driver of the outperformance, with a remarkable 9.3% revenue increase YoY. Adjusted EBITDA was $10.8 million versus our $8.4 million forecast, improving 12.8% YoY. Importantly, Q3 revenues and Adj. EBITDA are above 2019 levels, which is among the very few in its peer group.

    Setting up for a strong end of the year.  Management guided Q4 revenues to be slightly up 0% to 2%, which is better than our estimate of a 0.4% decline. The revenue guide is notable given that it compares with a year earlier strong Q4 2020, driven by $3.5 million in Political revenue. Excluding Political from last year’s period, revenue growth would be a solid 5% to 7%. Additionally, operating …



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. 

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