Transcontinental Q3 profits plummet despite higher revenues

Profit at Transcontinental Inc. plummeted to $8.1 million in the third quarter despite higher revenue as soft national advertising outside Quebec, lower educational book sales and costs related to its acquisition of Quad/Graphics Canada hurt the bottom line. The Montreal-based media company and printer said Thursday that it earned 10 cents per share for the […]

Profit at Transcontinental Inc. plummeted to $8.1 million in the third quarter despite higher revenue as soft national advertising outside Quebec, lower educational book sales and costs related to its acquisition of Quad/Graphics Canada hurt the bottom line.

The Montreal-based media company and printer said Thursday that it earned 10 cents per share for the period ended July 31. That compared to 39 cents per share a year earlier when net income was $31.5 million.

Adjusting for one-time items, profits dropped 23% to $24.9 million or 31 cents per share, compared with $32.5 million or 40 cents per share in the year-ago period.

Revenues were $517 million, up 8% from $479.4 million due to the acquisitions of Quad/Graphics and Redux Media, new printing contracts and community newspaper launches in Quebec.

The increase was partially offset by reduced educational book sales following the end of school reform in Quebec, printing contract incentives and lower community newspaper ad revenues.

CEO Francois Olivier said the results demonstrated the resilience of its printing operations as well as difficult markets conditions facing its media sector.

He said the company is on track to generate more than $40 million in synergies over the next 18 months from the acquisition of Quad/Graphics’ Canadian plants that once belonged to Quebecor World.

Transcontinental is the largest printer in Canada and fourth-largest in North America. It is a publisher of magazines, French-language educational resources and community newspapers in Quebec and the Atlantic provinces. It also has a digital network of more than 3,500 website.

Media Articles

Bell Media launches video streaming service

"Project Latte" will include the entire HBO scripted off-air library

Toronto Crime Stoppers shed light on contraband tobacco

Public awareness campaign asks citizens to take action

UPDATED: Rogers and Vice Media enter $100-million partnership

Media companies to produce Canadian-focused content for mobile, web and TV

A revisionist’s recent history of TV and internet advertising (Column)

Traditional TV has done a poor job of defending itself against false perceptions that ad spend is shifting dramatically. The danger is these perceptions can lead marketers to invest against that change, making it a reality

Digital magazine readership on the rise: PMB

Digital readership increases by more than 50% in the past year

Nearly half of Canadians read a newspaper each day: NADbank

Digital-only readership is just 11%, but growing among younger demographics

CTV/CMA announce judges for Super Bowl ad challenge

Winning ad will air during CTV’s Feb. 1 telecast of Super Bowl XLIX

TSN unveils online store

New venture isn’t intended to compete with established online merchants, but round out the online experience for TSN.ca users

Shomi announces new content deal with Warner Bros

Includes popular library titles like Veronica Mars, as well as several Kubrick films