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

How Shopify is using Snapchat as a recruiting tool

The ecommerce company is asking for Snapchat stories alongside CVs

The social success of CBC’s Baroness Von Sketch

The freshman sketch comedy show is reaching millions of viewers on Facebook

Inside Walmart Canada’s mobile shopping app

Mobile overtakes desktop as the largest source of traffic to retailer's digital properties

Rabbit ears are on the rise: MTM

8% of Anglophones access over-the-air TV using old technology

38% of Canadians are aware of online AdChoices program

Awareness level 'respectable' given program's newness says DAAC study

Q&A: Magazines Canada CEO Matthew Holmes

'I'm seeing all kinds of opportunities' says head of magazine industry’s governing body

St. Joseph adds to its e-newsletter portfolio

Following on the success of Twelve Thirty Six, company launches real estate product

Green P introduces mobile couponing

Pilot project in Toronto neighbourhood includes offers from 18 local businesses