Newfoundland Capital Corporation Limited (“the Company”) is Canada’s largest pure-play radio company, employing approximately 800 of the best radio professionals across the country. The Company’s portfolio of radio assets includes 63 FM and 18 AM licences which can be heard throughout Canada. Most of our stations are globally accessible via the internet and various mobile device applications, allowing listeners the flexibility to tune in to our stations at anytime from anywhere. The shares of the Company trade on the Toronto Stock Exchange under the symbols NCC.A and NCC.B.
2010 SIGNIFICANT HIGHLIGHTS
Consolidated revenue increased 12% driven by both local and national advertising revenue within the broadcasting segment.
21% increase in consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”)1. This is significant growth year-over-year and is net of $3.0 million in copyright fees which arose due to a Copyright Board ruling in July 2010. Excluding this ruling and the one time recovery of CRTC Part II fees in 2009, EBITDA would have been 51% higher than the prior year.
Net income is lower than the prior year due to certain non-operating items. In 2010 the Company incurred a $1.6 million broadcast licence impairment charge negatively impacting net income while 2009 results included a gain on disposal of a broadcasting licence of $5.6 million.
The Company declared dividends of $0.12 per share on each of its Class A Subordinate Voting Shares (“Class A shares”) and Class B Common Shares (“Class B shares”). This represents a 20% increase over the amount declared in 2009.
Pursuant to a Normal Course Issuer Bid, the Company repurchased for cancellation 1,459,978 of its outstanding Class A shares for $9.2 million.
The December 2010 listener ratings results were among the best the Company has ever achieved. The Company ranked #1 in its targeted demographic in the majority of its surveyed markets.