Salem Third Quarter Net Broadcast Revenue Up 3.2%. Chief executive officer Edward Atsinger said on the Q3 conference call that Salem Media Group's total revenue was up 5.6% but expenses were up 7.3%, "resulting in a 1.5% decrease in adjusted EBITDA." Atsinger said the expenses increase was almost entirely the result of increased health care costs. Back to the numbers, in the Broadcast segment, net broadcast revenue was $51.1 million, an increase of 3,2% over the same period a year ago. However, station operating income decreased by 2.1%. Atsinger reported that although they booked $1 million of broadcast political revenue during the quarter, that was down about 20% from the same period during the 2012 campaign. However, Atsinger adds, "Network revenue was up 29.2% for the quarter. Obviously, this extraordinary political year is a major driver in this revenue growth, and our nationally syndicated hosts have significantly increased their profile beyond the exposure of their own radio programs, which has resulted in an increased time spent listening to their shows and better response for advertisers, all of which has led to higher renewals, higher rates of renewals, and additional advertising clients."
Townsquare Media Net Revenue Flat in Q3. On a pro forma basis, Townsquare Media's Local Marketing Solutions segment – the one that includes broadcast and digital – saw net revenue increase 3.8% over the same period a year ago. It was the Entertainment segment – live events – that had a tough quarter and drew the company down to a net revenue decrease of 0.8%. Townsquare Media chairman and CEO Steven Price says, "On a pro forma basis, our Local Marketing Solutions segment continued its positive momentum by delivering another quarter of solid growth, with net revenue increasing approximately 4% over the prior year period. These results were offset by a decline in our Entertainment segment due primarily to exceptionally poor weather at four of our largest fairs. Excluding those fairs, Townsquare's pro forma net revenue and Adjusted EBITDA increased approximately 2% and 3%, respectively." For the first nine months of the year, Townsquare's (pro forma) net revenue is up 2.2% and the Local Marketing Solutions segment is up 5.1%.