DARTMOUTH – Newcap Radio owner Newfoundland Capital Corporation credited strong listener ratings at its stations in Toronto and Ottawa for a lift in fourth quarter revenues and profits.
For the period ended December 31, 2016, revenues of $47.0 million were up 3% from $45.5 million year-over-year, while earnings before interest, taxes, depreciation and amortization (EBITDA) grew 15% from $14.5 million to $16.7 million as a result of higher revenue and reduced operating costs in the company’s broadcasting segment.
Profit for the period of $10.4 million was $2.5 million higher than the same quarter last year, primarily as a result of revenue growth, a recovery of previously paid copyright tariffs, lower interest expense, and a lower effective tax rate.
For the full year, revenue of $169.5 million was 3% ($4.9 million) higher than 2015; year-to-date EBITDA of $51.8 million was 13% ($5.8 million) higher; and year-to-date profit of $31.0 million was $8.1 million higher.
In December, the Board of Directors declared dividends totaling $0.10 per share, bringing the total dividends declared for 2016 to $0.20 per share, which was an increase of $0.05 or 33% compared to 2015.
"We achieved record success in 2016 as a result of our ability to grow revenue in spite of modest declines within the industry and certain challenged economic regions" said president and CEO Rob Steele, in a statement. "The Company has also had a keen focus on cost control which will continue in anticipation of persistent economic challenges."
Newfoundland Capital Corporation Ltd. owns and operates Newcap Radio which holds 95 radio licences across Canada. The company’s complete fourth quarter report is available here on its website.
