DARTMOUTH, N.S. — Newcap Radio owner Newfoundland Capital Corporation announced its financial results for the second quarter of 2016 on Thursday, reporting 4% year-over-year growth for both its Q2 and year-to-date revenue, which it primarily attributed to strong listener ratings in its growing Toronto and Ottawa markets.
Newfoundland Capital (Newcap) reported its Q2 2016 revenue of $44.2 million was $1.6 million higher than revenue for the same quarter in 2015, and its year-to-date revenue of $81.1 million was $3.0 million more than revenue it reported at the end of Q2 2015.
The radio broadcasting company’s earnings before interest, taxes, depreciation and amortization (EBITDA) of $13.8 million in the quarter ending June 30, 2016, was $1.3 million or 11% higher than its EBITDA in Q2 2015, and its year-to-date EBITDA of $22.0 million was $2.4 million or 12% higher than the first-half period in 2015. The company’s improvements in EBITDA are a result of both its revenue growth and its continued commitment to managing costs, the company said in a news release announcing its Q2 2016 financial results.
In terms of profit, Newcap’s Q2 2016 profit rose 39% to $8.4 million from $6.0 million in the same quarter last year, while its year-to-date profit of $13.0 million was $4.4 million or 52% higher than 2015, due primarily to higher revenue and lower interest expense, the company said. In addition, Newcap said the prior year provision for income taxes was higher due to changes in future corporate income tax rates, which resulted in a one-time increase of $0.6 million in deferred tax expense.
Among the significant events for the company during the second quarter of 2016, Newcap repurchased 1.1 million of its outstanding Class A Subordinate Voting shares for cash consideration of $10.1 million. Subsequent to the quarter’s end, the company’s board of directors approved an increase in dividends to $0.20 per share per annum, up from $0.15 per share per annum. As a result, the board of directors declared a dividend of $0.10 per share on each of the company’s Class A Subordinate Voting and Class B Common shares on August 11, 2016, payable on September 15, 2016 to all shareholders of record at the close of business on August 31, 2016.
“The company’s success in the second quarter was a result of strong listener ratings that allowed us to grow revenue and EBITDA,” Rob Steele, Newcap president and chief executive officer, said in the news release. “We are pleased with the company’s overall results as many of our stations outperformed their respective markets, helping to compensate for certain regions where we have faced challenges this year.”
Newcap Radio is one of Canada’s leading radio broadcasters with 95 licences across the country, reaching millions of listeners each week through a variety of formats.
The company’s complete second quarter report is available on its website by clicking here.
