FP Newspapers Income Fund, majority owner of the Winnipeg Free Press and Brandon Sun, reported Wednesday a drastically lower fourth-quarter profit of $300,000 at its operating unit and announced it is cutting the equivalent of 26 full-time positions.
The fund, which holds a holds a 49% interest in operating unit FP Canadian Newspapers LP, said its earnings amounted to five cents per share, down from a year-earlier $3.2 million or 47 cents per share.
The company said its restructuring efforts during the quarter will result in a $400,000 charge and the reduction of 26 full-time equivalent positions by leaving six vacant positions unfilled and laying off 20 others.
“The economic slowdown affecting most businesses is having a significant impact on all media operations as retailers and manufacturers reduce advertising spending,” the company said in a statement.
“These reductions, which we started to see in the two months following the October strike, can occur quickly and can be deep.”
FP said its restructuring plan will reduce compensation expenses by about $1.3 million a year.
In addition to the Free Press and Sun dailies, FP operates Canstar Community News Ltd.’s five weekly newspapers, a weekly entertainment newspaper and a twice-monthly newspaper aimed at 50-plus readers in Winnipeg. It also operates delivery businesses in Winnipeg and Thunder Bay, Ont.
Revenue dropped 16.7% to $27.7 million, affected by the loss of 16 Winnipeg Free Press publishing days and some Canstar publications due to a strike by unionized workers. That came on top of pressures from a widespread contraction in advertising spending in the economic slowdown.
The operating unit reported fourth-quarter advertising revenues fell 15.8% to $19.8 million.
