DARTMOUTH – Newfoundland Capital Corporation’s five new stations in the Toronto and Vancouver radio markets seem to be paying off at last.
For the second quarter ended June 30, 2014, the radio broadcaster posted profits of $7.5 million, up 26% from $5.9 million the same quarter last year, which it said was due to the acquisition and $0.8 million of realized gains from the sale of marketable securities. Year-to-date profit was $4.3 million, down 46% year-over-year, because of acquisition-related costs of $8.8 million related to the Toronto and Vancouver business acquisition. Offsetting these one-time costs, Newcap benefited from $2.3 million of unrealized and realized gains this year.
Revenue of $42.3 million was 19% higher than $35.4 million recorded last year, and earnings before interest, taxes, depreciation and amortization (EBITDA) of $12.2 million was 19% higher than $10.2 million last year. The company attributed the growth to incremental revenue generated by the new stations.
"The integration of the Toronto and Vancouver stations went as expected and has generated accretive results from day one. In our other markets, revenue growth has been more of a challenge this year, particularly with national advertising revenue declining compared to the same periods in 2013", said president and CEO Rob Steele, in a statement. "Our primary focus in the coming months is to grow revenue and to reduce discretionary spending so that EBITDA results continue to be strong."
Newfoundland Capital Corporation holds 95 radio licences across Canada.
