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

Radio station operator Clear Channel renamed iHeartMedia

Owns 859 radio stations in more than 150 markets

Baanto ‘becomes part of the story’ with eTalk partnership

Touchscreen technology featured on broadcasts during TIFF

Canada to spend $255 million on digital video in 2014

But eMarketer says growth will be more modest in the future

Barbara Williams named president of Shaw Media

Paul Robertson's role filled by “passionate advocate”

The results of Apple’s free U2 download experiment

Company gets its "record breaking" headline, but many users rebel

Scion Sessions return with more short-film-styled music vids

Toyota brand bolsters connection with music, art and culture

On The Move – Weekly Roundup

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

Sandra Mackechnie named VP of digital advertising at Postmedia

Former head of digital strategy to grow the media company's digital audience