Glacier Media Q2 profit falls as acquisitions squeeze profit margins

Newspaper publisher Glacier Media Inc. says its profit margins have been squeezed by community papers acquired last year from Postmedia. The Vancouver-based company’s net income fell to $5.3 million or six cents per share in the third quarter, down from $7 million or eight cents per share a year earlier, before the deal with Postmedia. […]

Newspaper publisher Glacier Media Inc. says its profit margins have been squeezed by community papers acquired last year from Postmedia.

The Vancouver-based company’s net income fell to $5.3 million or six cents per share in the third quarter, down from $7 million or eight cents per share a year earlier, before the deal with Postmedia.

Revenue increased, however, due largely to the addition of the Victoria Times-Colonist and other former Postmedia papers starting in November as well as growth at Glacier’s business and trade information operations.

Glacier Media’s total revenue was $91.4 million, up from $71.7 million in the second quarter of 2011. Comparing assets that Glacier has owned for at least a year, consolidated revenue was relatively flat.

Glacier’s consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) was $17.1 million, up 12.1% from $15.3 million a year earlier.

Glacier said its consolidated EBITDA margin decreased to 18.7% for the quarter from 21.3% for the same quarter last year as a result of the lower margins of the Postmedia assets acquired.

“Management will seek to improve the margins and profit performance of the assets acquired through improved print and digital sales effectiveness, cost efficiency and other initiatives,” the company said.

Related
TC Media partners with Glacier Media to expand local sales reach

Media Articles

ZenithOptimedia revises global ad spend forecast downward

Canadian spending to grow 1.1% to US$11.2 million in 2015

Kiip and MasterCard partner on new app

‘Priceless Surprises’ app rewards customers in the moment

Why mobile payments aren’t catching on

Is using a debit or credit card just too easy?

Rogers Media refreshes AM news stations, starts with 680News

Revamp includes new radio imaging, websites and increased local content

TD banks on Instagram ads to support music program

The financial institution continues its support of the Canadian music scene

Metro pairs fashion with food

Grocer partners with fashion magazine Flare on food-focused marketing campaign

Activia kicks off campaign with world record attempt

Yogurt brand positions itself as a "lifestyle partner" through Rogers Media partnership

HBO Canada gives fans a chance to sit on the Iron Throne

Selection of Game of Thrones products available at Toronto pop-up shop