Torstar Corp. has reported a decline in both revenue and net income in the first quarter as the newspaper and book publisher continued to face challenges in the print advertising market.
The company, which operates a number of digital properties along with publishing the Toronto Star and other newspapers in Ontario as well as Harlequin books, says net income attributable to equity shareholders tumbled $13.3 million to $4.2 million.That compared with $17.5 million in the same 2012 period.
Total segmented revenue in the three months ended March 31 was $332.4 million, down $18.4 million from $350.8 million in the same 2012 period.
“Results continue to be affected by a challenging print advertising market and we are responding to this pressure with further reductions in the cost base that we believe will not compromise our commitment to quality,” president and CEO David Holland said Wednesday in remarks accompanying the earnings report.
“EBITDA from the segments was down $9.4 million to $29.4 million with the media operation down $5.7 million due to lower results at Star Media Group.
“We were, however, encouraged that our community media operations, Metroland Media, reported a modest increase in earnings in the quarter,” Holland said.
EBITDA, or earnings before interest, taxes, depreciation and amortization, is a non-standard accounting term that many companies feel gives a better understanding of their business.
Holland said EBITDA at Harlequin was down by $2.8 million to $18.2 million, excluding the impact of foreign exchange. Lower results were anticipated due to comparison to a very strong first quarter in 2012 and the impact of higher year-over-year digital author royalty rates.
“Looking forward, revenue visibility remains limited for the media operation,” Holland said.
“In the face of revenue pressures in certain areas of our business, we remain committed to seeking new revenue opportunity which include the introduction of the paywall at the Toronto Star this summer and our ongoing efforts to grow the Metro franchise across Canada.”
The company was also “very focused on adjusting the cost base in the Media operation” – efforts that are expected to benefit operating results through 2013 and in the future, he said.
