DARTMOUTH, NS – Despite a slowdown in the advertising market, Newfoundland Capital Corporation (NewCap) reported growth in net income and EBITDA for its third quarter ended September 30, 2009.
Consolidated revenue of $25.4 million was 3% lower than last year, however, year-to-date consolidated revenue increased by 1%, to finish at $74.8 million.
Consolidated EBITDA in the quarter was $4.7 million, compared to a loss of $4.2 million last year, while net income was $6.2 million, up by $13.8 million over last year. The company said that unrealized losses in 2008 negatively impacted the prior year’s results while this third quarter’s $5.6 million gain on disposition of a broadcast licence positively affected net income.
"We have been successful in achieving year-over-year growth in revenue and continue to outpace the industry", said president and CEO Rob Steele, in a statement. "This is something we are proud of given the uncertainty that has plagued the economy throughout 2009. Our goal for the rest of the year is to continue what we’ve successfully been able to do so far; continue growing existing operations and reducing debt. Enhancements in programming have been positive contributors to the business this year with ratings’ gains and growing market share in large markets. This puts us in a good position to take full advantage as the economy improves."
Newcap’s broadcasting segment, which derives its revenue from the sale of broadcast advertising from its 81 licences in Canada, was $24.3 million, or 3% lower than last year.
Its corporate segment earns revenue from hotel operations, and includes other income and expenses attributed to head office functions and investment income from the company’s marketable securities. Its revenue in the third quarter was $1.1 million, described as “on par” with 2008.
