DARTMOUTH, NS – Newfoundland Capital Corporation Ltd. reported fourth-quarter net income of $5.77 million, up from the $3.29 profit recorded in the same quarter a year earlier, according to financial results released Monday. The increase was attributed to a future tax recovery related to corporate income tax rate reduction.
Revenues for the quarter ended December 31, 2007 were $27.74 million, down 1% from $28.06 million the prior year, due to a slight decrease in broadcasting revenue in the fourth quarter.
Operating expenses were $22.7 million in the fourth quarter, down $1.5 million from 2006. The decrease was due to lower variable costs associated with lower revenue, combined with a $0.2 million cost savings in the quarter related to CRTC fees, and because of reductions in fixed costs amounting to approximately $0.7 million.
But the broadcasting segment posted a 15% improvement in EBITDA as the company acquired in October 2007 a minority shareholder’s 38% interest in Atlantic Stereo Ltd, which operates two radio licences in Moncton, New Brunswick. Newfoundland Capital now owns 100% of Atlantic Stereo.
Also, subsequent to December 31, Newfoundland Capital entered into an agreement with CTV Limited to acquire the remaining 50% of Metro Radio Group Inc. for $8.5 million, subject to CRTC approval. Metro Radio Group operates CKUL-FM in Halifax, Nova Scotia.
Newfoundland Capital has 76 radio licences across Canada.
