Salem’s Big Reset: Debt-Free, Profitable And Repositioning its Business
Salem Media Group’s 2024 annual report signals a major financial comeback for the Christian world’s only publicly traded media company.
The California-based firm made bold financial moves in 2024, drastically improving its bottom line after a challenging prior year. Salem not only reversed a $43.3-million net loss in 2023 into a $16.2-million net profit but also aggressively tackled its debt, eliminating long-term liabilities through a strategic buyback.
While overall revenue declined, the company’s digital division grew by 7.2% amid an influx of financial media subscriptions. With key asset sales across its Christian music business, Salem is repositioning itself towards digital and talk-radio offerings. Still, challenges remain in its traditional broadcasting business.
Salem’s stock (OTCQX: SALM) remained relatively unchanged following its earnings release on March 14, closing at $0.53 that day. As of March 19, the stock had risen to $0.57. On March 20, it fell to $0.46. This reverses a recent surge that began after Salem announced its strategic buyback announcement in late-December, jumping from $0.22 on Dec. 30 to $0.84 in early February. That momentum has since faded, with an 18.5% decline over the past month.
Revenue fell 8% year-over-year
Salem’s 2024 revenue fell 8.1% to $237 million, largely due to changes in its broadcasting segment.
Salem’s foundational business, which comprises radio stations, podcasts and news networks, reported a 6% drop in revenue—about one-third of which reflects the impact of station dispositions. Losses also included a $5-million decline in local spot advertising revenue (excluding political ads), reflecting a broader shift away from AM radio listenership.
Those losses were partially offset by a 75% surge in political revenue to $4 million, benefiting from increased demand during an election year. While political ads provided a temporary boost, Salem’s annual report acknowledges that this revenue stream fluctuates based on the number and type of candidates and issues.
Despite broadcast declines, digital media grew 7.2% year-over-year, adding $3 million in revenue across Salem’s web and streaming content. Digital subscriptions from Eagle Financial Publications (including DayTradeSPY and Gilder Technology Report) increased by $2.7 million.
Digital ad revenue dipped slightly (-$0.3 million), reflecting lower demand due to Facebook’s algorithm changes, third-party cookie restrictions and macroeconomic factors impacting ad spending.
Publishing revenue plummeted by 65% (-$12.4 million) due to the 2023 sale of Regnery Publishing, which had been a key revenue source, and an overall weakening demand for self-publishing services as economic pressures impacted discretionary spending.
Debt reduction and station selloffs
Salem returned to profitability through a mix of cost-cutting, asset sales and debt repayment. Last year’s net income was $16 million, compared to -$43 million in 2023.
The company implemented substantial debt reduction strategies to strengthen its financial standing in 2024. Through a debt buyback last December, Salem repurchased $159 million in senior secured notes due in 2028 at a $37 million discount, eliminating its long-term debt entirely.
Salem also sold radio stations in several states and executed a $5.5-million leaseback of its corporate headquarters, freeing up cash for strategic and operational priorities.
One of 2024’s biggest moves was Salem’s decision to sell seven major Christian music stations to Tennessee-based nonprofit Educational Media Foundation (EMF), the parent of K-LOVE. The $80-million deal allows EMF to expand its popular K-Love and Air1 networks into more markets where it previously relied on small translators or rimshots.
Part of Salem’s broader strategy to cut costs, the sale drew outcry from longtime listeners who saw the deal as a loss for Christian radio.
The retirement of its “Fish” brand concluded Salem’s multi-decade reign in the contemporary Christian music world. EMF, which began operating the former Salem assets in February, told Christianity Today that it plans to keep running Christian music on those stations, but discussions about programming are ongoing.
Salem is now returning to its talk-radio roots, pushing Christian preaching, commentary and conservative political programs. In February, the company transferred its Salem Music Networks business to Christian FM Media.
This story originally appeared at MinistryWatch.
Shannon Cuthrell is a journalist with a background covering business, technology and economic development. She has written for Business North Carolina magazine, WRAL TechWire, Charlotte Inno and EE Power, among other publications.