DARTMOUTH, N.S. – Radio broadcaster Newfoundland Capital Corporation boasted revenue of $26.9 million in the first quarter of 2011, $1.2 million (5%) higher than last year. This increase was attributable to organic (same-station) revenue growth, said the company.
EBITDA of $4.9 million in the quarter was 8% higher than last year and profit for the period of $2.9 million was 103% better than the same quarter last year due to improved EBITDA as well as the increase in market value of marketable securities.
Other developments in the quarter, ended March 31st, included:
• The company launched its FM conversion in Brooks, Alberta in February 2011.
• CRTC approval was received for a new repeating signal in North West River, Newfoundland and Labrador.
• In February, the Company repurchased 1,388,072 Class A Subordinate Voting Shares for $8.7 million pursuant to a Normal Course Issuer Bid.
• Since the end of the quarter, the company announced that it has entered into an agreement to sell CKJS AM and CHNK FM in Winnipeg, Manitoba for $5.5 million, subject to CRTC approval.
• In May 2011 the Company’s Slave Lake, Alberta operation was destroyed by fire (as reported here). The Company is currently broadcasting from temporary facilities until a new permanent location is built.
"This quarter’s growth came from both local and national advertising revenue", said Rob Steele, president and CEO, in the press release. "Our strategy to focus on maximizing existing operations has solidified our financial position and we are well positioned for future growth."
Newcap owns 81 radio station licences spread across eight Canadian provinces.
