Question-and-Answer Session
Operator
The question and answer session will be conducted electronically. (Operator Instructions) We’ll pause for a moment to assemble the queue. We’ll take our first question from Rich Ryan with Felti.
Richard Ryan – Felti & Company
Can you talk a little bit about the penetration in Australia, where you are on the traffic side and on the news side, if that’s ramping up.
William L. Yde, III
The penetration in Australia in the major markets around Australia we literally have every station except for two in the major markets in the country. We believe that sometime during the year we’ll add those to our base for traffic. At this point in time in the year, January, February, March is seasonally our lower point of revenue so there’s no reason to add additional affiliates until you get past this period. But, that would give us nearly every major station in the major markets in Australia. In news, Scott can probably tell you the exact number, but I think we’re at 22 stations still and we have had ongoing discussions in the news department but, again until we get past first quarter no point taking on additional news affiliates.
Richard Ryan – Felti & Company
Is that potential north of 100 stations potentially?
William L. Yde, III
Yeah. I believe when we mature, news will be north of 100 stations.
Richard Ryan – Felti & Company
Is the demand for there for the news as much as it for traffic?
William L. Yde, III
Yes, the demand is still there for news and with that it will provide the growth for the next five years. In Australia, the major markets are pretty much covered as far as traffic. I think you’ll also see some growth in some of the smaller markets in Australia especially when it comes to news. In smaller markets doing traffic reports is kind of silly almost.
Richard Ryan – Felti & Company
Switching over to UK, the affiliate UKRD, the nine stations, can you talk a little bit about that relationship and what that has done to our current inventory there?
William L. Yde, III
We started out a little early there, we opened our first station was in Oxford just outside of London. The UKRD is a group of nine radio stations all in largely suburban areas around London. Scott, I think has the number, I think maybe we do 450 reports a week.
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