Torstar sees Q2 profit as tax credit lowers expenses
Revenue drops 11.5 per cent to $143.2M
TORONTO • had a $4.8-million profit attributable to shareholders and improved adjusted earnings in the second quarter, partly because of cost reductions and partly due to a provincial tax credit that offset labour costs.
In the comparable period last year, Torstar posted a loss of just under $7 million.
Net income in the three months ended June 30 was equal to six cents per share, which compared with a loss of nine cents per share in last year’s second quarter.
Adjusted earnings from continuing operations equalled 16 cents per share, compared with a loss of three cents per share a year ago.
The year-over-year improvements were due primarily to lower operating costs. Salaries and benefits were down $20.9 million from a year ago, mostly because of the digital tax credit.
Revenue was down 11.5 per cent to $143.2 million in the second quarter from $161.7 million a year earlier.
Year-over-year comparisons are complicated by a number of acquisitions and divestitures, including a publication exchange between Torstar and Postmedia Network Canada Corp.
Their deal is being investigated by the federal Competition Bureau. The companies say they complied with the law and they’re co-operating with the competition watchdog.
Like most traditional newspapers, magazines and broadcast media, Torstar has been undergoing a yearslong decline in advertising revenue due to competition from digital media and changing consumer habits.
“While we are in the early days of a comprehensive multi-phased transformation plan, signs of progress are clear.” John Boynton, Torstar’s president and CEO, said.
He said Torstar is pleased with the stability of its subscriber revenue, which he described as a “large and more resilient part of our business.”
Boynton said its data about consumers and advertisers is key.
“Already we’re using some of the data to help us make decisions and start to figure out how to serve customers better. And the same with the client side,” Boynton said.