DARTMOUTH – Growth in its broadcasting segment helped power Newfoundland Capital Corporation (NewCap) to its “best fourth quarter ever”.
Broadcasting revenue of $29.7 million was $1.3 million or 4% better than the same quarter last year, while for the year, broadcasting revenue of $101.8 million was $2.0 million or 2% ahead of last year. The company’s Atlantic Canada radio properties and “organic” (same-station) operations accounted for primarily all of the revenue growth in the quarter and for the year, the company said.
Consolidated revenue of $30.5 million in the fourth quarter improved by 4%, and for the year ended December 31, 2009, consolidated revenue of $105.3 million was 2% higher than 2008. Fourth quarter consolidated EBITDA was $9.9 million and $23.9 million year-to-date. NewCap said that these consolidated EBITDA results were “significantly higher” than their respective comparative periods largely due to unrealized investment losses recognized in 2008, and the CRTC Part II fees’ reversal.
"We began this year with a lot of uncertainty but we ended it with the best fourth quarter ever from our Radio properties”, said president and CEO Rob Steele, in a statement. “We achieved our goals and posted positive revenue growth despite the fact the radio industry experienced negative growth for the year. This year we aggressively paid down our debt, lowering our outstanding balance by $18.6 million. Our listener ratings results in December further strengthened our competitive position in many of our key operating markets laying the foundation for 2010."
Fourth quarter net income was $5.5 million, (compared to a loss of $3.8 million in 2008), and net income was $15.4 million for the year, versus a loss of $4.6 million last year. The company said that the primary reasons for these positive variances were the unrealized investment losses and the goodwill impairment loss recorded in 2008, while in 2009 the gain on disposal of a broadcasting licence was recognized.
Consolidated operating expenses for the fourth quarter were $20.3 million, 8% ($1.7 million) lower than 2008, while for the twelve month period, they were $84.2 million, 2% ($1.5 million) lower than last year.
Corporate and other revenue decreased by $0.1 million or 13% in the fourth quarter and by less than $0.1 million or 1% year-to-date, due to decreased hotel revenue.
