DARTMOUTH, NS – Radio company Newfoundland Capital Corporation (NewCap) saw a fourth quarter net loss of $3.9 million, which contributed to a $4.4 million net loss for its fiscal 2008.
The net loss in Q4 was $9.7 million lower than 2007, and for the year, the $4.4 million net loss was $24.7 million lower than last year, the press release detailed.
Net income was also “significantly lower” than 2007 in the quarter and for the year, because of the “unrealized and realized losses in marketable securities and due to (a) goodwill impairment loss.”
NewCap saw incremental growth of 6% in the fourth quarter, and 4% year-to-date, which it says was a result of new revenue from the launch of new FM stations in Kentville and Sydney, Nova Scotia, and in Fort McMurray, Alberta. The Company also benefited from new revenue because of the July 2, 2008 purchase of the remaining 50% interest in the CKUL-FM licence in Halifax, Nova Scotia.
Its broadcasting segment’s revenue of $102.2 million was $6.8 million, or 7%, ahead of last year, though its EBITDA of $26.1 million was down $0.7 million, or 3%, compared to last year.
"While our company continues to post positive revenue growth we are cautious heading into 2009", said president and CEO Rob Steele, in the release. "Despite the uncertain economic times, we are performing well and our revenue bookings for the first quarter of 2009 continue to show positive growth. While we remain committed to exploring radio acquisition opportunities that fit the company’s growth strategy, our primary focus in the next twelve months is to continue maximizing organic growth and reducing debt."
The release said that the geographic dispersal of NewCap’s stations helped to mitigate the economic impact of any one particular market, and called its radio business "resilient" in past economic slowdowns.
Calling its local focus “a cornerstone to our success in the past”, the company said that its “local presence and connection with the community will serve us well during these uncertain times”.
