Wow – Debut Broadcasting net revenue is up 446% for YTD 2008. Of course, that’s a little easier to do for a company that pulled in just over $264K during the first half of 2007. During Q2, its revenues grew from $607 (yes, without a “K”) to $726,438. It still suffered a loss during the quarter, due to what it said were one-time and seasonal expenses. It’s operating with an interesting business model, though. It owns only five stations in the Greenville MS market, and LMAs two more in Vicksburg, but its Impact Radio Networks syndication arm is said to serve 1.4K stations in the US and Canada. Its plans include acquiring more “super regional” O&Os, which forces it to create more programming for its own use, thereby feeding the network with additional program options and creating more potential national/international revenue streams.
“Our belief was that we could target undervalued and underutilized media properties, acquire the radio stations, and then group them into a Super-Regional Cluster to lower overall expenses,” said CEO Steven Ludwig said. “Upon acquiring the rights to manage and operate the stations, we improve the operating systems and generate more revenue at a decreased cost of production.”
RBR/TVBR observation: Hey, whatever works. There is certainly no denying that small markets are the place to be at the moment.