DARTMOUTH, NS — Newcap Radio owner Newfoundland Capital Corporation reported Thursday its revenues in the second quarter of 2018 were down slightly compared to Q2 2017, saying its expansion into the Kamloops, BC, market had provided revenue growth to help offset soft results in Ontario and Newfoundland and Labrador.
These were the first financial quarter results released from the company since its proposed acquisition by Stingray Digital Group was announced in May. On June 27, Newfoundland Capital’s shareholders approved the acquisition arrangement with Stingray, and the company received final court approval after the second quarter ended. Stingray’s acquisition of the company is still subject to CRTC approval, but Newfoundland Capital said it expects the acquisition to close in the next two to five months.
In a news release announcing its Q2 2018 financial results, Newfoundland Capital reported its revenue for the second quarter was $43.5 million, a decrease of $0.1 million or less than 1% when compared to the same quarter last year. The company’s year-to-date revenue of $79.2 million was $0.2 million or less than 1% lower than the first half of 2017.
Reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $14.6 million in the second quarter of 2018, representing a $0.7-million or 5% increase over the same quarter of 2017. Year-to-date adjusted EBITDA of $21.5 million was $0.6 million or 3% higher than the first half of 2017 as a result of a continued focus on controlling costs, the company said in the news release.
Newfoundland Capital’s profit of $7.7 million in the second quarter of 2018 was down by $0.6 million or 7% compared to the same quarter last year. The company said its year-to-date profit of $11.0 million was $0.3 million or 2% lower than last year primarily because of higher integration costs in the current year. In addition, the company said the second quarter last year included a gain of $0.9 million on the sell-off of Richmond, BC, radio station CISL-AM (now operated by Rogers Media as Sportsnet 650 Vancouver).
In terms of recent business activity, after the second quarter ended, Newfoundland Capital received CRTC approval to acquire CKEC-FM and CKEZ-FM located in New Glasgow, NS. This transaction is expected to close after the completion of the plan of arrangement with Stingray, the company said.
“The company achieved growth in adjusted EBITDA in the second quarter and year-to-date,” said Rob Steele, chairman, president and CEO of Newfoundland Capital, in the news release. “We are pleased with the company’s results and ability to control costs to maintain strong margins, demonstrating radio’s ability to be resilient in a competitive media landscape.”
Newfoundland Capital’s full financial results for the second quarter of 2018 can be accessed by clicking here.
