Newcap Q1 Revenues Rise
May 8, 2007 at 9:29 AM (PT)
NEWCAP first quarter revenue grew 5% to C$19.5 million, with net income jumping from C$1.167 million to C$7.408 million (67 cents/share). The company launched AAA CFUL (FUEL 90.3)/CALGARY in the quarter and sold its HALTERM INCOME FUND Trust Units for C$14.5 million; after quarter's end, NEWCAP sold its 29.9% interest in LARCHE COMMUNICATIONS for a C$3.8 million gain which will be reflected in second quarter.
NEWCAP Pres./CEO ROB STEELE says, "launching FUEL 90.3 FM in CALGARY, ALBERTA in the first quarter was a priority. With two FM stations operating in this market, we will now benefit from operating synergies in marketing and infrastructure costs. The potential for strong revenue and margin growth is especially promising in CALGARY, one of the top five radio markets in Canada.
"Financial results this quarter were in line with expectations," added STEELE. "Having spent much of the last two years integrating new operations into NEWCAP RADIO's business platform, this year is all about reaping the rewards of that work by generating revenue growth and margin expansion."