Michael Kupinski's questions to SALEM MEDIA GROUP, INC. /DE/ (SALM) leadership • Q2 2023
Question
Michael Kupinski from NOBLE Capital Markets inquired about the significant expense growth since 2021 despite flat revenues, the drivers behind publishing expenses, the 2024 book title outlook, investments in a new film, the current broadcast advertising environment, and the timing of recently announced cost savings.
Answer
CEO David Santrella attributed the expense increase to strategic investments in in-house digital personnel and services. He clarified that a Q2 publishing expense increase was due to a one-time inventory reserve adjustment and noted major book releases are slated for Q4. Santrella confirmed an investment in a new Dinesh D'Souza film and described the Q3 broadcast ad market as sluggish. Regarding the $10 million in savings, Santrella and CFO Evan Masyr explained that the impact would begin in Q3 and be fully realized in Q4.