Torstar reports $7M loss in quarter
MEDIA Digital media unit a bright spot, CEO says
• Torstar Corp. reported a smaller secondquarter loss compared with a year ago as it saw improved results from its digital media company VerticalScope.
The publisher of the Toronto Star said it lost $7 million or nine cents per share in the three months ending June 30 compared with a loss of $ 23.9 million or 30 cents per share a year ago.
Operating revenue totalled $ 161.8 million for what was the company’s latest quarter, down from $177.9 million a year earlier.
Torstar chief executive John Boynton said VerticalScope posted strong yearover-year growth in revenue, while the company’s Metroland Media Group and Star Media Group benefited from efforts to reduce costs.
“We’re facing continued headwinds but we continue to make great progress,” Boynton said during a conference call. “We continue to be very encouraged by our VerticalScope side and we continue to be very encouraged by our core digital and news sites and their performances as well.”
Torstar holds a 56- percent stake in VerticalScope, which owns and operates hundreds of online forums and websites i ncluding AutoGuide. com, PetGuide. com, Motorcycle. com and ATV.com.
In traditional media, it owns the Hamilton Spectator and the Waterloo Region Record and more than 100 weekly community newspapers, along with its flagship newspaper, the Toronto Star.
In its outlook, the company said cost reduction will remain an important area of focus for the balance of the year. Revenue growth at VerticalScope is also expected to continue in the second half of 2017.
Torstar said its most recent quarter i ncluded a $6.3-million non-cash amortization and depreciation charge related to its investment in VerticalScope and $6.1 million in restructuring charges.
That compared with a $ 26.6 - million non- c ash charge related to VerticalScope last year as well as $ 6.9 million in restructuring charges and a $ 4.5- million non-cash charge related to the transition of printing of the Toronto Star to Transcontinental.
On an adjusted basis, Torstar says it lost three cents per share in the second quarter compared with a loss of 13 cents per share in the same quarter last year.
CONTINUED HEADWINDS BUT WE CONTINUE TO ... PROGRESS.