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Wednesday, Jul 24, 2024

Tax Benefits Boost Salem Media’s Income

Salem Media Group Inc. reported a decrease in revenue but an enormous jump in net income because of tax reform. The Camarillo broadcaster of Christian and politically conservative content reported net income of $22.4 million (85 cents a share) for the fourth quarter ended Dec. 31, compared to net income of $3 million (11 cents) for the same quarter a year earlier. Total revenue decreased 4.9 percent to $67.2 million For the full year, the company reported profit of $24.6 million (94 cents a share) on revenue of $264 million. In the fourth quarter, the company reported a $23 million tax benefit from the Tax Cuts and Jobs Act of 2017. In a conference call with investors and analysts Friday, Chief Executive Edward Atsinger attributed the revenue decline to the fact 2017 was a non-election year, while 2016 was a presidential election year with high media consumption for the company’s audience. Shares of Salem (SALM) closed Friday down 5 cents, or 1.3 percent, to $3.95 on the Nasdaq.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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