/PRZOOM - Newswire/ - Debut Broadcasting™ generated net revenue of $451,345, an increase of $187,878 or 41 percent, compared to $263,467 for the quarter ended March 31 (OTC BB: DBTB).

Nashville, TN, United States, 05/16/2008 – Debut Broadcasting Corporation (OTC BB: DBTB), a media and entertainment company, today announced its results for its 2008 first quarter ended March 31.

Debut Broadcasting™ generated net revenue of $451,345, an increase of $187,878 or 41 percent, compared to $263,467 for the quarter ended March 31, 2007. As a result of the increased costs for legal, accounting, audit and administrative fees, Debut’s overall loss for the three-month period ending March 31, 2008 was $260,796, compared to $109,480 at the end of the 2007 first quarter. However, the first quarter 2008 loss has narrowed significantly when compared on a quarter-by-quarter basis to the fourth quarter 2007. Additionally, the company’s cash and cash equivalents at the end of the first quarter 2008 are $451, 096, significantly greater than the $30,003 at the end of the same period last year.

Debut was formed in May 2007 with the reverse merger of two firms and the subsequent spin-off of Media Sentiment, Inc. “Since MSI’s results are included in our results for the first two quarters of 2007 but not past mid-year, we think it’s instructive to compare results on a consecutive quarter-by-quarter basis as well,” said Steven Ludwig, CEO of Debut Broadcasting.

To this end, Debut noted today that it had lowered its net operating loss by more than 50 percent from the fourth quarter of 2007 (ended December 31) to the first quarter of 2008. This is on top of a more than 16 percent reduction in net operating loss and an 8.5 percent reduction in expense in the fourth quarter of 2007 versus the third quarter of 2007 (ended September 30).

“Since we formed Debut Broadcasting last year, we have operated on the guiding principle that we could grow our business by aggregating a growing portfolio of undervalued and under-utilized media properties, create operating synergies by combining these properties under a unifying and directed operational approach, and drive costs down to generate profits on growing revenue,” Ludwig said. “When we compare our last three quarters of activity, it shows that we are well on our way to accomplishing these objectives as we cut our expenses by more than half in the past six months.

“We continue to see gains in our revenue on a quarter-by-quarter basis, however our strongest quarters are yet to come, which is typical in the radio business. New initiatives in our radio syndication operation undertaken in the second half of last year are yielding revenue increases in the second quarter, a trend we believe will continue through the balance of this year.”

Debut Broadcasting Owned & Operated Radio Station Growth and Strategy

In the 2008 first quarter, Debut Broadcasting grew its owned and/or operated (O&O) radio stations by 40 percent. The company now owns and/or operates seven radio stations versus zero stations owned/operated when the company was formed in 2007. Debut’s strategic focus is on smaller markets exurban to medium and large markets in the Southeastern United States that represent attractive operating environments and generally exhibit:

• Strong underlying economic trends;
• Ability to dominate revenue share;
• Small, independent operators that can be consolidated within the market to create cost-efficiencies;
• Weak competitive media environment.

The aforementioned operating characteristics of the markets have created significant opportunities for growth and the formation of what Debut calls “Super-Regional Clusters™” within these markets. To maximize the advertising revenues of these stations, Debut is enhancing the quality of radio programs for listeners and the attractiveness of the radio stations to advertisers in the given markets. Debut's Super-Regional Cluster strategy creates cost efficiencies by condensing duplicated overhead in each market into a regional management structure. Also, Super-Regional Clusters introduce the long-term opportunity to sell stations as a regional super-buy in the future, delivering large geographic areas in a single purchase, which Debut believes will be viewed as attractive for regional and statewide customers.

Debut currently controls a cluster in the greater Greenville, Miss. area and entered into a local marketing agreement with Holladay Broadcasting for two radio stations in the Vicksburg, Miss. area that are being assembled into Debut’s “Mississippi Super-Regional Cluster”.

“The strength of our radio operations strategy lies in our ability to buy existing stations at prices below market value,” Ludwig explained. “We utilize our extensive radio and management background to successfully increase sales, reduce operating costs and increase overall performance. By creating Super-Regional Clusters, we expect to be able to consolidate the operations of the stations and eliminate redundancies; thereby cutting our per-station operational costs by 13-17% as the Super-Regional Cluster fully develops.

“A station cluster also allows us to program multiple, advertising-friendly formats to reach a cross-section of key demographic and lifestyle groups within the community. By simultaneously selling all the stations as a single offering to our national and local advertising partners, we anticipate the market share and overall revenue will increase.”

Agency / Source: Politis Communications

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