July 2, 2008
Debut Broadcasting Finds Success in Half the Time With Second Cluster of Small Market Stations
Debut's New Business Campaign Has Generated More Than $110,000 in New Advertising in a Mere Three Days for Its Vicksburg, Miss. Owned and Operated Radio Stations
Politis Communications for Debut BroadcastingInvestor Contact:
David Politis, 801-523-3730
Jonathan Bacon, 801-523-3730
Lindsay Thomson, 801-523-3730
Debut Broadcasting Corporation(TM) (OTCBB: DBTB), a media and entertainment company, today announced it has generated more than $110,000 in incremental business bookings in just three days from new advertising partners for its two Vicksburg, Miss. radio stations.
"Based on the average result, Debut has doubled the effectiveness of its business plan in half the time," said Steven Ludwig, CEO of Debut Broadcasting. "When we entered into the small radio market in Greenville, Miss., it took approximately six months to implement the new business campaign and reach profitability with our five owned and operated (O&O) stations. In the Vicksburg market, we have generated nearly the same amount of new revenue and achieved profitability in half the time it took in Greenville, and with only two radio stations compared to five."
On a per-station basis, Debut's success rate in Vicksburg is much higher than Greenville, and the success was realized much faster. Sales (which were on a steady year-over-year decline for the past three years) have increased (based on year-over-year performance) in each of the three months Debut has operated the stations, and the operation has been cash-flow positive practically from the start. That has allowed implementation of the new business initiative much sooner, and the success of that campaign is projected to add an extra $6,000 directly into the company's bottom line per month for the next 12 months.
"We are quickly gaining confidence in our approach to small market radio through our Super-Regional Cluster(TM) strategy," Ludwig said. "We are seeing a more rapid transition to success as this business strategy is repeated. And as Debut continues to acquire additional radio stations, we are certain our success will continue to improve, resulting in a faster transition to profitability from our O&O stations.
"Results like these give us confidence we can achieve the business goals we set for ourselves and announced to shareholders and trade press during our last conference call. Given the added pressure of economic uncertainty and subsequent volatility in both credit and financial markets, we are pleased to be on-track with our goals and we see some possible scenarios where performance can increase further this year."
Debut Broadcasting has raised its 2008 sales forecast for the Vicksburg, Miss. market on the basis of early results, and expects financial impact from these new advertising partners to be reflected in Q3 2008 reporting.
About Debut Broadcasting Corporation, Inc.
A media and entertainment company, Debut Broadcasting Corporation, Inc. (OTCBB: DBTB) supports its clients throughout North America while also improving shareholder value through targeted turnaround opportunities in the southeastern United States. Through its entertainment arm, Impact Radio Networks, Debut sells pre-recorded radio programs and related services to more than 1,400 AM and FM stations in the U.S. and Canada, and reaches more than 45 million listeners per week, making it one of the leading syndicators in the industry. The company also provides marketing, consulting and media buying for its radio broadcast stations. Through its media division, Debut identifies and acquires (or manages) underperforming and undervalued media properties in the southeastern U.S., and its first five acquisitions have given Debut radio dominance in the greater Greenville, Mississippi marketplace. For more information about Debut Broadcasting, please visit www.debutbroadcasting.com or email [email protected]
Debut Broadcasting and Super-Regional Cluster are a trademarks of Debut Broadcasting Corporation, Inc. All other trademarks are property of their respective owners.
Certain statements contained in this news release may not be based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by reference to a future period or by the use of forward-looking terminology, such as "expect,""anticipate,""believe,""estimate,""foresee,""may,""might,""will,""intend,""could,""would,""plan,""forecast" or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the services provided by our Chief Financial Officer, our entry into new markets and fields and our earnings potential.
We caution you not to place undue reliance on the forward- looking statements contained in this news release because actual results could differ materially from those indicated in such forward- looking statements as a result of a variety of factors. These factors include, but are not limited to, our ability to provide and market competitive services and products, our ability to attract, train and retain qualified personnel, our ability to operate and integrate new technology, changes in consumer preferences, changes in our operating or expansion strategy, changes in economic conditions, our ability to identify and effectively integrate potential acquisitions, FCC and government approval of potential acquisitions, geographic concentrations of our assets and susceptibility to economic downturns in that area, our ability to compete with other companies that produce and distribute syndicated radio programs and/or own radio stations, other factors generally understood to affect the financial condition or results of companies that produce and distribute syndicated radio programs and/or own radio stations and other factors detailed from time to time in our press releases and filings with the Securities and Exchange Commission. We undertake no obligation to update these forward- looking statements to reflect the occurrence of changes or unanticipated events, circumstances or results that occur after the date of this news release.
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