DARTMOUTH – If you want a direct look at how radio in Canada is still defying the naysayers who point to the medium’s imminent demise, take a close look at Newfoundland Capital Corporation, a company which (other than two small TV stations) is a pure radio play. The company has radio licenses in 68 communities.
It’s third quarter revenue growth was 11%, rising to $25.4 million at the end of September, 2007, as compared to last year’s Q3.
The rise in the quarter “was primarily due to organic growth,” says the release, “while year-to-date revenue grew by 8% to $71.1 million from a combination of organic and new station growth.”
Earnings before interest, taxes, depreciation and amortization (EBITDA) were $3.8 million in the quarter, ahead of last year by 44%. Year-to-date EBITDA of $11 million was $1.9 million ahead of last year when this year’s $1.3 million loss and last year’s $7.1 million gain from marketable securities were excluded.
Net income of $1.3 million in the quarter compared favourably to last year’s nominal amount. Year to date net income of $14.5 million ($1.31 per share) was $5.9 million better than 2006 due to gains from the disposal of an equity accounted investment and the disposal of Halterm Income Fund Trust Units.
During the quarter, the company launched "The Fox" in Edson, Alberta in July following the CRTC’s approval of the company’s request to convert the AM station to FM. On October 1, the company completed the purchase of the 38% minority interest in Atlantic Stereo Limited, which operates the two FM licences in Moncton, New Brunswick, for $6.9 million.
"One of our stated objectives this year was to take measures to increase revenue in markets where we face new competition which we achieved. We are very pleased to see growth across our operating portfolio, particularly organic growth", said Rob Steele, president and CEO, in the press release.
“In the most recent Trans-Canada Radio Advertising by Market ("TRAM") Report, the company outpaced the market with organic growth of 9% in the quarter as compared to the 0.5% growth posted by the TRAM for the same period. The company has a number of radio station launches planned in the next six to twelve months and we are eager to expand in markets such as Fort McMurray and Lac La Biche, Alberta, as well as Kentville and Sydney, Nova Scotia".
