DARTMOUTH – Newcap Radio owner Newfoundland Capital Corporation credited its Ontario broadcasting operations for an uptick in fourth quarter revenues.
For the period ended December 31, 2017, revenues of $47.4 million were up 1% from $46.9 million year-over-year, while adjusted EBITDA grew 10% from $16.7 million to $18.4 million as a result of higher revenue and reduced operating costs.
Profits for the period fell 31% to $7.2 million, primarily because of an impairment charge of $5.5 million related to certain rural Alberta broadcast licences recognized in 2017, which had an after-tax impact of $3.9 million on the fourth quarter and year-to-date results.
The company said that growth in the quarter and year-to-date was primarily related to higher revenue in its Ontario broadcasting operations that benefitted from “ratings success”, combined with the acquisition of three stations in Kamloops, BC, which offset declines in certain Alberta and Newfoundland and Labrador stations because of the challenging economic environment in those regions.
For the full year, revenue of $169.9 million was $0.3 million higher than 2016; year-to-date adjusted EBITDA of $52.6 million was 2% ($0.9 million) higher; and year-to-date profit of $26.7 million was 14% ($4.3 million) lower than the prior year.
"We achieved a successful 2017, growing Adjusted EBITDA in a year when revenue was steady," said president and CEO Rob Steele, in a statement. "The Company is focussed on radio and will continue to invest in our existing operations as well as seek out opportunities for expansion that are beneficial to our shareholders."
The company’s complete fourth quarter report is available here on its website.
