DARTMOUTH – Small and mid-market radio company Newfoundland Capital Corporation posted third quarter revenue of $22.8 million, an 18% increase over the third quarter of 2005 and year-to-date revenue of $65.9 million, also an 18% increase over 2005.
EBITDA improved 9% to $5.6 million for the quarter, ended September 30th.
Consolidated EBITDA was $2.6 million in the quarter, down from $4.2 million last quarter due to a provision for decline in value of short-term investments, consistent with a general decline in the stock market, said the company’s press release.
Year-to-date EBITDA of $17.5 million "is more than last year’s $13.3 million due to investment gains recognized in the second quarter," says the release.
There were no acquisitions this quarter but the company continues its expansion by way of new license approvals such as the new FM license in Calgary, awarded on August 2, 2006. "Management is proceeding expeditiously to launch this station early next year. The company currently has eleven applications in various stages with the (CRTC), the most recent being presentations for new licenses in Fort McMurray, Medicine Hat and Grande Prairie, Alberta and Regina and Saskatoon, Saskatchewan," reads the release.
Newcap owns 74 licenses across the country.
"Our attention continues to be on the expansion of our assets and our margins. This year we have invested heavily in audience research, marketing and promotion in a number of markets where we have new formats or new station start-ups" said Rob Steele, president and CEO. "We expect these new start-ups and acquisitions to generate accretive earnings over the medium and long term. Radio broadcasting in Canada is demonstrating excellent revenue growth right now and we anticipate that to continue well into the future. Newcap Radio is succeeding in its approach of aggregating assets regionally while growing the company through new license awards and acquisitions."
