Acquisitions boost radio operator Newcap’s Q2 profits

A deal with Bell Media pays off

Newfoundland Capital Corp. Ltd. has reported a 26% increase in second-quarter net profit as the radio station operator realized an almost 20% boost in revenue as a result station acquisitions in Toronto and Vancouver.

The Nova Scotia-based company, which has 95 radio licences across the country, says net earnings were $7.5 million or 26 cents per diluted share, up from just under $6 million or 20 cents per diluted share in the comparable 2013 period.

Revenue in the three months ended June 30 was $42.3 million, up from $35.4 million in the prior-year period.

The company said most of the $1.6-million increase in profit was as a result of the acquisitions as well as $800,000 in realized gains from the sale of securities.

In March the CRTC approved the sale of Bell Media‘s CHBM-FM and CFXJ-FM in Toronto as well as CKZZ-FM, CHHR-FM, and CISL-AM in Vancouver.

“The integration of the Toronto and Vancouver stations went as expected and has generated accretive results from day one,” president and chief executive Rob Steele said Wednesday in a statement accompanying the earnings report.

“In our other markets, revenue growth has been more of a challenge this year, particularly with national advertising revenue declining compared to the same periods in 2013. Our primary focus in the coming months is to grow revenue and to reduce discretionary spending so that EBITDA results continue to be strong.”

Media Articles

Bell and Rogers in disagreement over NHL GamePlus mobile app

Canada's biggest media companies face off over access to NHL content

Fashion Magazine launches awards show

Inaugural event caps off annual World MasterCard Fashion Week

TVB disputes IAB’s ad spend figures

Television marketing body says numbers unfairly include digital spend on traditional media including broadcast and print

Rogers partners with Netflix on original series

Between starts filming in Toronto this fall

Corus partners with publishing platform Flink

Popular radio show will stream on the digital storytelling platform

GroupM signs on to support new research tool

Multimedia survey collects information on when, where and how media is consumed

Jack Tomik leaving Rogers Media at the end of the month

Ad sales veteran Al Dark to replace Tomik

Astral to introduce 40 digital TSAs in Toronto

City council will allow up to 120 new units to be introduced in the next three years

CBS Outdoor Canada rebrands as Outfront Media

New name represents the company’s continued focus on progress and growth