DARTMOUTH, NS – Radio broadcaster Newfoundland Capital Corp. almost tripled its net profit to almost $6 million in the second quarter over the previous three months, driven by what the company calls “organic” increases in revenue.
Revenue for the second quarter was $35.8 million, an increase of $1.5 million or 4% higher than last year. Year-to-date revenue of $64.9 million was $3.1 million or 5% higher than 2012.
EBITDA was at $10.3 million, which was $1.1 million or 12% higher compared to the same period in 2012. Year-to-date EBITDA of $15.5 million was $1.6 million or 11% higher than YTD2012.
In a release, Newcap said Q2 2013 EBITDA was higher in comparison to the same period last year because last year’s operating expenses included non-cash amounts of $0.8 million in the quarter and $1.1 million year-to-date related to the extension of executive stock option expiry dates.
Second quarter profit $6.0 million was $2.2 million or 59% higher than the same quarter last year, and increased $3.9 million over the first quarter of 2013.
Year-to-date profit of $8.1 million was $3.5 million or 78% higher than the same period in 2012. Newcap said the combination of lower interest expense and lower unrealized mark-to-market losses contributed to increased profit compared to last year.
Revenue and EBITDA continue to show positive growth despite flat industry growth,” said Newcap president and CEO Rob Steele in the release. “We’re very pleased with our organic results and also very pleased that we are expanding our operations. We have successfully launched our radio stations in Miramichi and Fredericton, New Brunswick and look forward to seeking out other opportunities to grow.”
In July, Newcap announced it had acquired CHNI-FM in Saint John, NB from Rogers, and also agreed to sell its CHFT-FM station in Fort McMurray, Alta., to Harvard Broadcasting Inc. Both transactions are subject to CRTC approval.
