DARTMOUTH, N.S. – Radio broadcaster Newfoundland Capital Corp. has reported profits of $5.9 million in the second quarter, up from $2.5 million in the same quarter last year. Revenues increased to $33 million from $30 million.
Newcap also announced agreements to acquire the independently owned radio stations CKKO FM of Kelowna and CIGV FM (along with its two repeater licenses) of Penticton, British Columbia, subject to approval from the CRTC.
"These licenses are a great fit for our company. It is in a growing area of the country and gives us a presence in British Columbia’s Okanagan Valley. There is potential for growth and we expect these acquisitions to be cash accretive in the near term,” says Newcap president and CEO Rob Steele.
Year-to-date profit of $8.8 million was $4.0 million or 84% better than the same period in 2010. Newcap attributes the increase to improved EBITDA as well as the increase in market value of marketable securities. EBITDA of $11.1 million in the quarter were $4.9 million or 78% higher than last year and year-to-date EBITDA was $16.1 million; $5.1 million or 47% better than 2010.
Newcap says its lower net corporate expenses were due to its executive compensation hedge which reduced compensation expenses by $1.1 million and reduced copyright fee expenses.
