FP Newspapers Income Fund said today revenues and profits sagged in the second quarter due to weaker results at its operating unit.
The Winnipeg-based fund, which is the majority owner of the Winnipeg Free Press and Brandon Sun, reported net earnings of $2.2 million or 32 cents per unit for the quarter ended June 30. The results mark a decrease from profits of $2.5 million or 37 cents per unit recorded a year earlier.
Revenues at the fund’s operating unit, FP Canadian Newspapers Limited Partnership (FPLP), declined 8.4% to $29.7 million compared to $27 million booked a year earlier. The drop was led by an 11.6% plunge in advertising revenues.
Net earnings at FPLP, in which the fund holds a 49% stake, totalled $2.8 million, down from $3.7 million booked during the same quarter in 2008.
The fund set its quarterly cash distributions at 28.5 cents per unit, down from distributions of 32.3 cents per unit made a year ago.
In addition to the Free Press, FP operates Canstar Community News Ltd.’s five weekly newspapers, a weekly entertainment newspaper and a twice-monthly newspaper aimed at age 50-plus readers in Winnipeg. It also operates delivery businesses in Winnipeg and Thunder Bay, Ont.
