Salem Communications Q3 2006 Earnings Call Transcript

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2006-11-06 10:03:19.0

Tags: Salem Communications Corp.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). And we'll take our first question from James Dix of Deutsche Bank. Please go ahead.

James Dix - Deutsche Bank

Good morning, everyone. Just a couple of questions. First on the revenue side, do you have any specific expectations on political revenue for the fourth quarter? Secondly, in terms of the impact of the higher fixed costs on the stations, Evan, which you outlined, any way to quantify what that impact is year-over-year in terms of OpEx from those additional stations at fixed cost increment? And then, just turning to the online efforts you have, is there any way of translating those page views into impressions for CPM purposes? I mean, what CPMs are you getting on your online traffic, or is that not how you're selling it? I'm just trying to understand a little bit better the revenue model there, and the potential for growth.

Evan Masyr

David Evans is with us, and I'll let him deal with some of these. I would just simply say, on the political side, we've seen some pretty good activity. It was quite late this year. We thought it would break a little earlier. It broke late in October. It continues obviously through today. I don’t have the final count, but there has been a substantial surge of political revenue that has come in, and we'll be able to quantify it fairly soon. We can't do it with great specificity right now.

David Evans

I am going to estimate that political revenue between Q3 and Q4 is going to approximate round about $1 million, could be a little higher, could be a little lower, everything is very late. So, we are continuing to track and monitor it, and won't have a final number until probably the end of the month. In terms about higher fixed costs from the market that Evan mentioned, Detroit, Honolulu, Miami, Omaha, Sacramento and Tampa, I don't have those numbers handy. We can probably talk about them a little bit offline, James.

James Dix - Deutsche Bank

Okay.

David Evans

But don't have those specifics handy. In terms of our online effort, our relationship of page views to impressions, we have probably -- I'm going to try getting three impressions per page view. We sell through a combination of cost per impression, cost per lead, so I don't have a specific metric for you on that front. But, that's the relationship of impressions to pages.

 

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