DARTMOUTH – Newfoundland Capital Corporation continues to reap the rewards from its new radio stations in Toronto, Vancouver and Saint John, as 2015 profits climbed $12 million over last year.
For the year ended December 31, 2015, profits topped $23.2 million, which the company said was primarily a result of the acquisition costs of $8.9 million and impairment charge of $5.7 million recorded in 2014. Also contributing was the inclusion of the Toronto and Vancouver stations for the full year in 2015 compared to nine months in 2014.
Annual revenue grew 7% year-over-year to $164.6 million, due the inclusion of new radio stations including in Saint John, NB for the full year. Also contributing to the revenue increase was organic growth of 2%. Earnings before interest, taxes, depreciation and amortization (EBITDA) of $46.0 million was 10% higher than 2014 due to the incremental EBITDA derived from the acquired stations as well as the organic revenue growth and cost control.
For the fourth quarter, revenue grew 2% to $45.5 million from $44.4 million in the same period of 2014, EBITDA was down 3% to $14.5 million from $14.9 million, and profits jumped to $8.0 million from $2.6 million in the same quarter last year due primarily to the impairment charge recognized in the prior year.
In December, the Board of Directors declared dividends totaling $0.09 per share, bringing the total dividends declared for 2015 to $0.15 per share, which was on par with 2014.
"2015 was a record year for our radio business," said president and CEO Rob Steele, in a statement. "The Company's success was attributable to the integration of the Toronto and Vancouver operations as well as the reduction of operating costs and growth in organic revenue. Ratings results in late 2015 had many of our radio stations ranked within the top three in their respective markets, which should contribute to solid financial performance in 2016."
Newfoundland Capital Corporation holds 95 radio licences across Canada.
