DG FastChannel reported record Q1 results. Consolidated revenue for the first quarter 2009 was $41.4 million compared to $29.2 million in the same period of 2008, a 42% increase. First quarter 2009 revenue from the delivery of HD ad content was $10.9 million compared to $3.7 million in the same period of 2008. First quarter 2009 rich media advertising revenues were $2.0 million, a substantial increase for this business segment.
Said CEO Scott Ginsburg: “First quarter results demonstrate solid progress towards key strategic and financial objectives. High definition content distribution remains a strong driver of DG FastChannel’s growth, and an ever-increasing number of advertisers are creating HD campaigns that we manage and deliver through our proprietary network. The Company’s efforts over the past few years to build an advertising-centric digital platform and complete workflow toolset put us in a unique position to be the leader in advertising distribution to the North American broadcasting market, as we build a foundation in the new media space. On June 12, 2009, all TV stations in the U.S. are required to switch to digital broadcasting. We project that all eight TV networks, 107 of the 114 cable networks, and nearly half of the TV stations in the Top 100 markets will be capable of receiving and broadcasting HD advertising by that time. We are encouraged by these developments and expect our exceptional performance with HD advertising revenues to continue.”