Torstar Corp. rose to a $57.4-million profit in the fourth quarter, reversing a year-earlier loss as the big media company weathered a turbulent economy and benefited from earlier cost-cutting.
The Toronto-based newspaper, book and Internet publisher said Wednesday its net income equalled 73 cents per share.
The results are a turnaround from the $213.9-million loss, or $2.71 per share, the company reported a year earlier when it recorded $236.2 million of asset and investment writedowns.
Torstar’s revenue in the fourth quarter fell by 4.3% from a year ago to $394.8 million. About one-third of the decrease–$6.6 million–was attributed to the impact of a strengthening dollar on revenues from book publishing.
However, the company shaved its costs by earlier restructurings and job cuts.
Besides its daily and community newspapers, including the flagship Toronto Star and other southern Ontario dailies, Torstar publishes books through its Harlequin division.
“We felt we had a good close to the year, and we’re pleased with the year as a whole given the economic conditions," said chief executive David Holland.
“While our revenue was affected by the economic cycle, we were disciplined on capital employment and cost while maintaining our commitment to numerous strategic initiatives."
Torstar, as with most media companies that depend heavily on advertising revenue, was hit hard by the 2008-09 recession.
Torstar’s newspapers were particularly affected by high unemployment as Ontario’s vital manufacturing sector–especially the automotive industry–was hammered by a drop in exports and difficulty getting credit.
Consumers were also worried at the end of 2008 about the value of their homes, as real-estate demand dropped due to lack of confidence and a more difficult borrowing environment.
Canada’s real-estate market has largely recovered, particularly in Toronto and other major centres, and the auto sector is reviving.
Torstar’s revenue from newspapers and digital publications was $272.6 million, down $13.5 million or 4.7%.
For the year, Torstar reported profits of $35.6 million from a loss of $181.5 million in 2008. Revenue was $1.45 billion versus $1.53 billion.
