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May
10
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Newcap Radio To Purchase Three Stations In Kamloops
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The Canadian Press

Nova Scotia-based media company Newfoundland Capital Corp. Ltd. has signed an agreement to buy three radio stations in Kamloops, B.C., just two weeks after announcing the sale of one of its radio stations in Vancouver.

The company confirmed it intends to sell CISL 650 to Rogers Media and purchase NL Broadcasting Ltd. in Kamloops, including radio station CHNL-AM and its two FM stations.

Both the purchase and sale are subject to approval by the Canadian Radio-television and Telecommunications Commission.

Newfoundland Capital, through its subsidiary NewCap Inc., holds 95 radio or television licenses across Canada, including three in Vancouver and one each in Kelowna and Penticton.

President and chief executive Rob Steele says the sale of CISL is in the best interests of shareholders, while he says NewCap is excited about entering the Kamloops market because CHNL and its FM licenses already have a strong presence.

“This acquisition continues to expand our presence in British Columbia and fits well with our current operations in Vancouver and the Okanagan Valley,” Mr. Steele said in a news release.

NewCap posted first-quarter financial results on Tuesday showing revenue of $35.7-million, $1.1-million lower than the same period last year, while first-quarter profits were $3-million, a decrease of 35 per cent.

Mr. Steele says the first quarter was challenging, but the drop in revenue is consistent with declines throughout the radio industry and he expects that a focus on quality and cost control will allow the company to overcome the shortfall over the remainder of the year.



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