Mixed Bag: Salem, Saga, Radio One Report Varied Performance

Radio

Big broadcast radio groups have had mixed fortunes in the second quarter, with some companies reporting revenue growth and others reporting big drops. This week brought diverse results from Salem Communications, Saga Communications, and Radio One, reinforcing the mixed impression from other radio broadcasters' second quarter results.

Salem Communications, a Christian broadcast radio group with 95 stations in 37 markets around the country, saw total revenues increase 5.7% from $53 million to $56 million, according to CEO Ed Atsinger, who also issued an upbeat prediction for the third quarter, when he expects total revenues to increase 4% to 6%.

Atsinger's forecast was bolder than most other radio executives, who have generally shied away from even short-term predictions, citing limited visibility due to continuing economic instability.

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Conversely, Saga Communications -- which owns 91 stations in 26 markets nationwide -- revealed that total revenues were basically flat from the second quarter of 2010 to the second quarter of 2011, edging up slightly from $32.9 million to $33.1 million.

CEO Ed Christian blamed the stagnation at Saga (and the radio business overall) on broader economic woes, rather than the specific "dynamics of our business. Radio is a mirror of what's going on." Looking to the future, Christian would say only: "We're living in a slightly up or flat world."

Finally, Radio One -- which owns 54 stations in 17 urban markets targeting minority listeners -- saw total radio revenues decline from around $62 million to $60 million. This was largely due to drops at stations in Baltimore, Columbus, Dallas and Houston, with Houston presenting "the biggest problem," given fierce competition resulting in a rate war.

However, the company's bottom line was boosted significantly by its increased stake in the TV One cable TV business, which added $25 million to total revenues.

Radio One CEO and President Alfred C. Liggins III stated: "The addition of Cable Television to our segment reporting for the first time in Q2 demonstrates the continued evolution of Radio One: core radio revenues for Q2 now represent approximately 62% of the Company's revenues."

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