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Salon Media Group, Inc. (OTCQB: SLNM) today announced its results for the three months ended December 31, 2012. Net revenues for the quarter increased 9 percent to $1.0 million compared to the same period last year. Strong traffic growth at Salon.com resulted in a 23 percent increase in ad revenues for the three months ended December 31, 2012. The ad sales increase in the third quarter primarily stems from a 63 percent increase in third party sales to $0.6 million compared to $0.4 million for the three months ended December 31, 2011.
Salon has been able to achieve traffic growth while simultaneously decreasing operating expenses. Total operating expenses declined 7 percent to $1.8 million for the three months ended December 31, 2012, compared to $1.9 million for the same period last year. The savings were achieved through a restructuring that included winding down areas that did not generate growth, such as the Company’s video production unit, Salon Studio, and Salon Core, the subscription-reliant business unit, as well as the sale of The WELL, an online community. These changes reduced the Company’s quarterly operating loss from continuing operations to $0.8 million for the three months ended December 31, 2012, a 20 percent reduction compared to the same period last year.
In 2012 Salon’s traffic grew 64 percent, according to ComScore. Among a list of 18 competitors, Salon experienced the third highest traffic rate increase during calendar year 2012.
Under the leadership of Cynthia Jeffers, who became the CEO/CTO of Salon Media Group in June 2012, the Company has been driven to improve financial results by innovating custom advertising solutions, broadening and diversifying high quality content offerings, and extending its reach into mobile and social media.
“Being among the fastest-growing news sites in terms of audience growth for 2012 will put us in a strong position to monetize this increased traffic, raise our brand profile, and further invest in our core business in 2013,” Jeffers said.