Debut Broadcasting reported in an SEC filing that is discussing “potential settlement options” for the lawsuit it filed against Nectar Media, the company formed by former Debut VP of Radio Network Operations and Director of Marketing Marcus Rowe. Meanwhile, Debut reported another down quarter.
Q2 net revenues fell 19.3% to $447,202. The quarterly filing with the SEC blamed that on the damages cited in the lawsuit. The legal action claimed that Rowe took about 25% of Debut’s client base and was signing deals for his new company while still on the Debut payroll.
But while revenues were down, expenses also fell by 14.5% to $308,411. That was because Debut LMA’d three of its stations to Delta Radio and also because of a restructuring which resulted personnel and resulted in about $140,000 in annual savings.
Interest expense fell dramatically, as did depreciation and amortization because of pending station divestitures. All in all, net income for Q2 was up 10% to $93,810.
Debut said it expects the station sales to Delta Radio to close in Q3. It is also expecting revenues to increase in the quarter through sales and distribution of a proprietary Media Management Software suite.