Salem Sees Income Up for Year

Salem Communications Corp. reported a minimal drop in fourth quarter net income and a 50 percent increase in income for the full 2006 fiscal year. The Camarillo-based radio Christian and family-themed broadcaster, Internet content provider and publisher had a net income of $3.27 million, or $0.08 per diluted share, on revenue of $59.8 million for the fourth quarter ending Dec. 31. That is less than a 1 percent drop from the $3.3 million in net income, or $0.13 per diluted share, on revenues of $53.9 million for the same period in 2005. For the full fiscal year, Salem had net income of $19 million, or $0.68 per diluted share, on revenues of $227.8 million in revenues. That is a 50 percent increase over the $12.7 million in income, or $0.51 per diluted share, on revenues of $209.7 million for the 2005 fiscal year. A strong-performance by the non-broadcast media business, development of the company’s news talk stations, and a consistent block programming business spurred the revenue growth in the fourth quarter, said Salem President and CEO Edward G. Atsinger III, in a statement. Revenue growth from the radio stations was offset by increased investment in marketing, promotion and local programming talent at certain news talk stations, which reduced station-operating income for the quarter, Atsinger said. “We consider these investments an important step in driving our less developed radio stations to long-term profitability,” Atsinger said.