DARTMOUTH – Radio broadcaster Newfoundland Capital Corp. posted a profit of $6.4 million in the second quarter, a rise of five per cent over the $5.8 million generated last year.
Sales came in at $27.4 million, up from $26.2 million last year, with broadcasting revenue in the quarter coming in at $26.5 million, an increase of $1.3 million over the year before.
"We are making significant efforts to improve results in Edmonton and Calgary, Alberta. We were extremely pleased to see in the July ratings that our overall market share in these two cities has increased. This is a very important achievement for us and demonstrates our ability to focus our efforts on increasing listenership", commented Rob Steele, president and CEO. "And while we continue to grow the company organically, we remain focused on expansion plans as evidenced by our recent acquisition announcements and new station launches."
During the last quarter the broadcaster acquired the remaining 50% interest in Metro Radio Group Inc., which operates CKUL-FM in Halifax, Nova Scotia. It also acquired a 29.9% interest in a FM radio station in Nova Scotia. Both transactions were completed on July 2, 2008, for a total of $9.5 million.
Newcap has also announced it has also agreed to pay nearly $19 million for 12 FM broadcasting licenses in Ontario from Haliburton Broadcasting Group Inc. The acquired properties include radio stations in Muskoka, North Bay and Timmins in central and northern Ontario. The seller These two transactions are subject to approval by the CRTC and would represent a net cash. In June the company also launched three new FM stations in Fort McMurray, Alberta and Sydney and Kentville, Nova Scotia.
It also plans to trade radio station CFDR-AM in Halifax to Rogers Broadcasting for its CIGM-AM station in Sudbury, Ont., for $5 million. Both broadcasters have applied to the CRTC to have the stations converted to FM signals.
