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

Cable companies down, but not out

Cutting the cord won't mean cutting out your cable provider

On the Move — Weekly Roundup

A recap of who’s headed where in Canadian marketing communications

Blue Ant hires Laura Pearce to focus on consumer outreach

Former AOL exec now VP of brand strategy and fan engagement

CBS launches digital streaming service

Service offers expansive lineup, but doesn't include live sporting events

Digital Day 2014: Mitch Joel and Scott Stratten talk real-time

The social media experts discuss social spontaneity and Carrot Top

HBO GO to launch as stand-alone streaming service in 2015

Network sets its sights on the 80 million homes in the U.S. that don't have HBO

Nearly half of Canadians now binge watch TV: Study

Reasons to binge watch: not tied to a schedule, ability to skip commercials