Inside Radio is today reporting that Conservative talk/Christian broadcaster Salem Media Group will implement temporary pay cuts for executives & employees. Specifically the company’s executive officers will see their salaries cut by 10%. Salem has also instituted company-wide employee pay cuts, staff reductions and the elimination of open positions and new hires. Significantly for investors, Salem on Tuesday said it will temporarily suspend the regular quarterly cash dividend it pays stockholders. In our market, Salem owns conservative talk 1590 “The Answer” KLFE & Spanish Christian 1680 “Radio Luz” KNTS.
Scott Jones’ FTV Live notes that NBC O/O stations will also be implementing cuts. A week back the network instructed management to cut pay & roll back recent raises. Negotiations are still taking place regarding pay cuts to contract employees, such as those who work at NBC News. Now the network has instructed management to initiate more pay cuts & staff reductions as they struggle with decreased revenue streams affecting all broadcasters in America currently.
Meredith has delayed it’s report to the SEC on earnings. In its SEC filing, Meredith said the pandemic has caused “significant disruption of aspects of our business, including advertising cancellations and delays, reduced demand, loss or disruption of manufacturing and distribution capability, and quarantines and other government actions that have disrupted staffing and “necessary business functions.” The company has indicated that financial conditions are so bad there is a high risk the company could default on it’s loans. Meredith has cut employees pay, but says more cuts could be coming, saying the company, “may need to take further action to ensure the continuity of our business.”The broadcast company expects to give their earnings report later this week.
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