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

Career Boosters: The future of social media

Three industry execs on the future of social and how to stay relevant in the field

Best Buy enlists Tracy Moore for Mother’s Day PR program

Cityline host providing gift suggestions and blog posts targeted at mom

PMB/NADbank release final readership studies

Mobile readership rising for newspapers; magazines reach 75% of Canadians

Cogeco Cable selects new agency partners

Taxi, Touché! and Bimm all awarded assignments with cable giant

Dynamic Outdoor selects ad tech supplier, joins COMB

Dynamic committed to being a tech company first, billboard company second

Irrelevant messages drive rise of ‘deletist’ consumers

New Aimia survey finds Canadians are getting tougher on brands

Cundari launches media division

Cundari Media Trust combines media planning with creative strategy and analytics