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

Giving marketers the inside edge

SPONSORED: In-app video from Flurry and its marketplace now available to Yahoo advertisers

Yahoo Canada’s Year in Review

SPONSORED: Tapping in to what matters most to users

The search for social marketing’s J.D. Power

Aimia CMO John Boynton says social marketing needs metrics that look deeper

Canada’s Hottest Ads: A very foodie November

...with a light dusting of holiday cheer

Toronto Star hires Rethink

Agency to focus on promoting the paper's print edition and tablet news products

Former Quebecor CEO to head St-Hubert restaurant chain

Robert Depatie starts new role in February

Why there needs to be a victor in the mobile wallet wars

Retail Futurist Doug Stephens says convenience will reach a tipping point