Debut Broadcasting, the smallest publicly traded radio company, reported its second straight quarter of increased revenues. It is also getting a new national sales rep.
Debut reported that Q3 net revenues were up 7.2% to $566,743. The company noted that national sales have continued from the economic collapse of 2009. Operating expenses decreased 35.7% to $386,793, largely due to an LMA that shifted expenses for its three Greenville, MS stations to Larry Fuss as operator and future owner. Net income decreased to $100,326 from $166,510 a year earlier, due to settlement in Q3 of a promissory note the company had signed with Citadel Broadcasting back in 2002.
Debut is changing ad sales reps for its syndicated programming. Dial Global will end its contract with Debut on December 26th. Under a contract signed October 13th United Stations will take over handling national ad sales for Debut’s Impact Radio Networks.
“We are pleased to report continued progress in the 3rd quarter,” said CEO Ronald Heineman. “Our restructuring, which began in February, has better aligned the business with the current choppy economic environment. We are confident that our recent personnel moves will prepare Debut for the future. I am also happy to report the acquisition of the radio broadcast station WNBV FM in Grundy, Virginia, which will add to our top line focus going forward,” he added.
Those personnel moves included the recent hiring of Chuck Hiller as Vice President of Network Operations. Debut’s quarterly 10-Q filing with the SEC states that it has sued former VP of Network Operations Marcus Rowe, accusing him of tortuous libel and using Debut’s trade secrets and intellectual property to compete against his former employer.
