WMDH - WMDH Commits Growth Plans for Payday Advance Division Over Next Twelve Months
May 1, 2007 1:48:00 PM
HUNTINGTON BEACH, CA -- (MARKET WIRE) -- 05/01/07 -- WMD Holdings Group, Inc. (PINKSHEETS: WMDH) (Worldwide Media Development Holdings Group, Inc.) announced its commitment to growth plans for its newly acquired online payday advance lender, Payday Advance Plus, Inc. (www.paydayadvanceplus.com) over the next twelve months.
Marketing Commitment
To fulfill net profits of $1 million from its online Payday division over the next twelve months, the company has engaged in marketing strategies to enhance the quality of customers that can fulfill the underwriting criteria currently in place. The company is engaging multiple lead generation companies with national reach, to provide qualified online leads.
Furthermore, the company has developed a customer enhancement program to promote loyalty and goodwill amongst its clients. The program includes a referral marketing incentive to existing clients, as well as a financial education component, which will educate clients on financial loan products available.
On a broader perspective, an affiliate marketing awareness campaign is underway to promote cross selling across varied industries online. The company has not restricted efforts to the online world either; just two months ago the company enhanced its market reach through payday lending licensing approval, to operate in its California retail financial centers. Additional licenses are being sought in Nevada and Florida to promote the payday service to the company's soon-to-be-announced franchise division. Additional states will follow on a staged basis over the next twelve months. The net profits from the brick-and-mortar locations are separate from estimates in the online payday division above.
"To compete in the $40 billion per year payday lending business, our marketing efforts are focused on attracting customers that are traditionally alienated by conventional banks. Most clients are hard working Middle America, when at times of economic hardship have no where to turn. Our industry fulfills their emergency needs," said Mr. Pillay, WMD Holdings' CEO.
He further added, "The leaders in the industry such as Advance America, (AEA), Cash America International (CSH), EZPW and First Cash Financial Services (FCFS) have shown double-digit growth over the past five years, reflecting the immense need being fulfilled in the market."
The larger players in the payday advance, amidst the sluggishness in the sub-prime housing market, have reflected strong first-quarter results. EZCORP (EZPW), a pawn broker and payday lender, increased its payday-lending side of the business, with a 46% increase and a bad debt improvement from 1% to 13% of fee revenues. Cash America (CSH) announced a 25% increase in its latest quarterly release with the increase in earnings largely due to a significant increase in revenue from cash advance loans. First Cash Financial Services (FCFS) reported net income of $10.3 million, a 35% increase over first quarter 2006 net income of $7.6 million. Cash advances increased by 21% over the prior-year period.
"The Payday division of WMDH will add value to our shareholders and affiliate companies alike and we are energized by the traction and performance of this industry," said Mr. Pillay, WMD Holdings' CEO. He further added, "An additional $1 million net profit would create an earnings per share of $.015, adding $.30 per share to our market value."
About WMD Holdings Group, Inc.
WMD Holdings Group, Inc. and its strategic partner companies develop turnkey solutions for financial and payment processing, prepaid services, telecommunications and interactive broadcasting networks. Distribution is conducted through a combination of company owned and operated locations, online and other independent sales organizations.
The new management team reflects a balance between decades of expertise, experience, business skills and strategic planning in the financial, telecommunications, technology and advertising industries. The diverse portfolio of people and products poises WMD Holdings for a successful future in multiple sectors.
The new management's allegiance to its shareholders is reflected by their actions taken during their brief tenure. To date the group's restructuring and focus on new markets, has resulted in creating a debt free company, with increased profitability on a quarterly basis. The result has been the growth of shareholder value as never experienced previously.
Management will continue to focus on profits, by a combination of further restructuring, the opening of newer markets and a series of synergistic mergers and acquisitions.
Safe Harbor Statement
The foregoing press release contains forward-looking statements. For this purpose any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "estimate," "continue," or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties and actual results may differ materially depending on a variety of factors.
Contact:
Investor Relations
Worldwide Media Development Holdings Group, Inc.
relations@wmdholdings.com
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