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 Broadcasting
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.
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