Salem Media Launches New Podcast Venture; Shares Rise 3.5%

Salem Media Group on Jan. 5 announced the launch of the Salem Podcast Network, which will focus on bringing traditional content to more listeners and viewers through the Salem podcast platform. Shares of the multimedia company rose 3.5% at the after-hours trading on Tuesday.

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Author Dinesh D’Souza is Salem Media Group’s (SALM) first podcast partner in the new venture. D’Souza’s new podcast “Pardon Me!” will debut on Jan. 11, 2021, across all podcast platforms, including SalemNow.com, YouTube, and Rumble.

Salem expects to have more announcements regarding the new platform in coming weeks.

“The future for podcasting is unlimited, and our efforts will tightly focus on hosts who will contribute to our brand and to the message,” said Salem’s SVP Phil Boyce.

In Q3, the company surpassed both revenue and cash flow expectations, driven in part by political advertising.

In reaction to the company’s Q3 results, Noble Financial analyst Michael Kupinski reiterated a Buy rating on the stock on Nov. 13.

Total revenue in the third quarter rose by 6% to $60.6 million year-on-year, beating Kupinski’s estimate by $3.5 million. Cash flow measured by adjusted EBITDA stood at $9.6 million exceeding the analyst’s projection by $1.9 million. As a result, Kupinski’s Q4 revenue and adjusted EBITDA estimates remained mostly intact at $62.1 million and $9.7 million, respectively. (See SALM stock analysis on TipRanks)

Meanwhile, Kupinski who has a price target of $2.25 (94% upside potential) on the stock, raised his full-year 2020 revenue estimate from $230.8 million to $233.9 million and cash flow estimate from $27.4 million to $28.9 million.