DARTMOUTH – While Newfoundland Capital Corporation credited its new radio stations in Toronto and Vancouver for helping to drive up revenues, the company’s 2014 profits took a sharp drop.
For the year ended December 31, 2014, revenue of $154.5 million was 17% higher than last year, and earnings before interest, taxes, depreciation and amortization (EBITDA) of $41.6 million was 25% year-over-year, both of which the company attributed to the new big market stations acquired from Bell last March.
Year to date profit of $11.2 million was $15.8 million lower than 2013, due primarily to a non-cash impairment charge of $5.7 million and a mark-to-market write-down of marketable securities of $0.8 million, as well as acquisition-related costs of $8.9 million. In addition, last year the company benefited from a $3.8 million gain on the disposal of its operations in Fort McMurray and an income tax provision reduction of $5.3 million.
For the fourth quarter, revenue grew 25% to $44.4 million from $35.6 million in the same period of 2013, EBITDA increased by 45% to $14.9 million from $10.3 million, and profits tumbled from $10.3 million to $2.6 million.
"The acquisition of stations in Toronto and Vancouver helped the Company to realize double-digit growth in revenue and EBITDA this year", said president and CEO Rob Steele, in a statement. "Throughout 2014, national advertising revenue has been below our expectations and this has caused a modest decline in organic revenue. In 2014 we also faced increased competition and we re-branded certain stations which are taking time to gain audience share. Ratings results in late 2014 had many of our radio stations ranked within the top three in their respective markets which should contribute to solid revenue in 2015."
Newfoundland Capital Corporation holds 95 radio licences across Canada.
