Quebecor Inc. reported Tuesday that it had a net income of $428.1 million in the first quarter of 2008, with nearly 90% of that attributed to accounting changes related to its insolvent former printing subsidiary Quebecor World.
In its first financial report since the printer sought court protection from creditors on Jan. 21, the media and printing company said its net profit for the period ended March 31 amounted to $6.66 per share, and compared with a loss of 23 cents a year ago when the total loss was $14.6 million.
Despite valuing its investment in Quebecor World at zero and classifying the subsidiary as discontinued operations, the printing subsidiary generated $383.3 million of earnings, or $5.96 per share. That’s up from a $17.8 million loss, or 28 cents, a year ago.
Income from continuing operations at Quebecor Media, which owns cable, newspaper, television, magazine and Internet businesses, increased to $44.8 million, or 70 cents per share, up from $3.2 million, or five cents per share in 2007.
The parent company, which has moved to distance itself from Quebecor World ever since it went under court supervision, didn’t disclose any revenue from that business.
Revenue from continuing operations increased by $72.8 million, an increase of 16.8%. Quebecor Media reported its first-quarter financial results on May 6.
Quebecor Media’s revenue growth was strongest in cable, newspapers and broadcasting, which were up by 14% to 21%.
