DARTMOUTH, NS – Despite a dip in revenue, Newfoundland Capital Corporation Limited saw its third quarter profits increase by more than $9 million.
For the third quarter ending September 30, 2013, Newcap reported revenue of $32.7 million, $0.5 million or 2% lower than last year. But profit for the period of $8.7 million was $9.7 million higher than last year's loss of $1.1 million.
The company said that year-to-date profit of $16.7 million was $13.2 million higher than the same period in 2012 because last year's results included a $7.5 million impairment charge. In addition, the year-to-date provision for income tax expense was net $2.7 million lower than last year.
EBITDA of $7.5 million in the quarter was $1.2 million or 14% lower than last year due to lower revenue and higher operating expenses. The radio broadcaster said that new station start-ups combined with changing formats in one of its radio markets contributed to the increased operating expenses in the quarter.
"Revenue and EBITDA in the quarter were not up to our expectations; however, we continued to outpace industry results which were negative 8% in the quarter. Future bookings are encouraging and we expect to finish the year on a positive note," said Newcap president and CEO Rob Steele in the release. "The pending acquisition of five stations in Canada's two largest radio markets is a rare opportunity and is transformational for Newcap. We are eager to get this transaction completed and look forward to welcoming the employees in those markets to the Newcap team."
