DARTMOUTH, NS – Newfoundland Capital Corporation’s foray into the Toronto and Vancouver radio markets weighed heavily on its first quarter financial results.
For the period ended March 31, 2014, the radio broadcaster posted a $3.2 million loss, an abrupt change from last year's profit of $2.1 million, which it said was due to acquisition-related costs of $8.4 million when it bought two radio stations in Toronto and three radio stations in Vancouver from Bell Media for $111.9 million. Excluding these costs, profit for the quarter would have been $800,000 higher than last year, primarily due to mark-to-market unrealized gains in the quarter.
Revenue of $28.5 million was 1% ($300,000) lower than $28.8 million last year, and earnings before interest, taxes, depreciation and amortization (EBITDA) of $4.5 million in the quarter were down 12% ($600,000) from last year. The company attributed the decreases to lower national advertising revenue in the Broadcasting segment.
"We are very pleased to have completed the Toronto and Vancouver business acquisition. These are the two largest radio advertising markets in the country and our primary focus is to effectively integrate these new operations”, said president and CEO Rob Steele, in a statement. “The addition of these licences is transformational, making us a true coast-to-coast broadcaster. At the same time we will continue to drive revenue, both locally and nationally, as aggressively as possible, to ensure the continued success of our organic operations."
Newfoundland Capital Corporation holds 95 radio licences across Canada.
