Transcontinental Inc. reversed a large loss last year to earn $27.5 million in the second quarter on stable revenues.
The media company and commercial printer said it earned 35 cents per share for the period ended March 31, compared to a loss of $1.31 per share or $106.2 million a year ago.
Adjusting for one-time items, Transcontinental’s earnings dipped two per cent to $34.8 million or 44 cents per share, in line with analyst expectations.
Revenues decreased slightly to $521.3 million from $522.4 million a year ago.
The company said the acquisition of Quad/Graphics Canada and Redux Media helped offset the loss of Zellers flyer printing and a more difficult advertising environment.
CEO Francois Olivier said the benefits from integrating the Quad/Graphics printing assets have come more quickly than anticipated.
However, he said expectations of further weak advertising spending will require additional cutbacks to limit the negative impact on the media sector’s profit margin.
On the Toronto Stock Exchange, Transcontinental’s shares gained 21 cents, or 1.79 per cent, at $11.96 in Thursday morning trading.
