• by Erik Sass , March 13, 2009

Three mid-sized radio groups reported declines in their fourth-quarter revenues, reflecting the effects of a steep economic downturn and a secular decline in radio ad spending.

Salem Communications, Beasley Broadcast Group and Fisher Communications all reported substantial impairment charges, reflecting the industry-wide decline in the value of radio assets. The weak fourth-quarter results follow bad news from other big radio companies, including credit downgrades and threats of bankruptcy in the coming year.

Among the radio groups reporting revenues last week, Salem Communications reported the smallest percentage decline--with total revenues dropping 6.3% in the fourth quarter of 2008 compared to 2007, from $58.5 million to $54.8 million. For the full year, total revenues slipped 3.6% to $220.7 million. In the fourth quarter, Salem absorbed a $52.7 million impairment charge reflecting losses in goodwill and asset value.

Also last week, Beasley Broadcast Group said its fourth-quarter revenues fell 12.9% in 2008 compared to 2007, from $35 million to $30.5 million. For the full year, revenues slumped 9.3% from 2007-2008, from $133.9 million to $121.4 million.

Like Salem, Beasley took a big impairment charge in the fourth quarter of $62.5 million. The company also said it will cut costs by laying off 7% of its employees and cutting salaries by 5%. At Fisher Communications, which owns TV stations and a somewhat smaller portfolio of radio stations, radio revenues fell 18.3% to $6.6 million. The company also reported a $78.2 million impairment charge.

Last week, Salem was listed on Moody's "Bottom Rung," a list of companies considered to be at greatest risk of defaulting on their debts, along with Citadel, Cumulus, Emmis, and Radio One. This follows the near-bankruptcy of Sirius-XM, the satellite broadcaster, and repeated credit downgrades for other terrestrial broadcasters.

In late February, Standard & Poor's downgraded the credit rating of CC Media Holdings, the company formed by private-equity firms to take Clear Channel Communications private, lowering its credit rating from a B to a B-. The decision was motivated by growing concern that the holding company might not be able to keep up with payments on nearly $18 billion in debt assumed in the deal to take the company private last year.