FP Newspapers Inc. profits fell by a third in the first quarter as the company took a hit from a decline in earnings by FP Canadian Newspapers Limited Partnership in which it owns a major interest.
Winnipeg-based FPI said Wednesday that profit in the three months ended March 31 was $1 million or just under 14 cents per share. That compared with net earnings of $1.5 million or 21 cents per share in the same prior-year period.
Revenue dropped 5.2% to $25 million from $26.4 million in the 2010 quarter.
“The decrease in FPI’s net earnings in the quarter is primarily due to the net decrease in earnings of FPLP… and an increase in deferred income tax expense,” FPI said in a news release.
FPLP, in which FPI has an equity interest which entitles it to 49% of FPLP’s distributable cash, had net earnings of $2.7 million in the quarter compared with $3 million in last year’s quarter as a result of lower revenue, partly offset by lower operating and financing costs.
