DARTMOUTH – Newcap Radio owner Newfoundland Capital Corporation is crediting growth at its stations in Ontario and British Columbia for a third quarter lift in profits and revenues.
For the period ended September 30, 2017, revenues of $43.1 million were up 4% from the same period last year, primarily due to gains in its Ontario operations combined with the business acquisition in Kamloops, BC. Year-to-date, the Toronto and Sudbury operations achieved strong revenue growth, largely offsetting declines faced in other areas of the country, particularly at certain Alberta and Newfoundland and Labrador stations.
Profit for the period of $8.2 million increased 6% year-over-year primarily due to higher revenue. Adjusted EBITDA of $13.4 million in the third quarter increased 2%, excluding the $0.8 million net reduction in expenses related to a copyright fee recovery and certain restructuring costs recognized in the third quarter of 2016, adjusted EBITDA was 10% higher than the third quarter last year.
Subsequent to quarter end, the company agreed to acquire two FM stations in New Glasgow, NS, subject to CRTC approval. The company's announcement says the company has set aside $3.3 million for Hector Broadcasting’s CKEC (AC, 94.1 FM) and CKEZ (Classic Rock, 97.9 FM).
During the third quarter, the board of directors approved an increase in dividends to $0.50 per share per annum, up from $0.20 per share per annum
"The Company had a successful third quarter, which made up for the challenging start to 2017 and positioned us for another successful year," said president and CEO Rob Steele, in the company’s Q3 report. "Our continued strong results have allowed us to reward our shareholders through a significant increase in our annual dividend."
Newfoundland Capital Corporation Ltd. owns and operates Newcap Radio with 101 broadcast licences (72 radio stations and 29 repeating signals) across Canada.
