Transcontinental boosts dividend, post Q1 loss of $33.3 million

Canadian media company and publisher Transcontinental Inc. is raising its dividend by 7% after reporting that it slipped to a first-quarter loss. Transcontinental reported a $33.3 million loss, or 41 cents per share, as it faced tax-related losses. The company booked a tax-loss of $58 million tied to notices of a reassessment on deductions to […]

Canadian media company and publisher Transcontinental Inc. is raising its dividend by 7% after reporting that it slipped to a first-quarter loss.

Transcontinental reported a $33.3 million loss, or 41 cents per share, as it faced tax-related losses. The company booked a tax-loss of $58 million tied to notices of a reassessment on deductions to its capital asset investments.

The results compare to a profit of $25.7 million, or 32 cents per share, a year earlier.

Adjusted net income was down 6% to $27.1 million, or 33 cents per share, a penny lower than analyst expectations, according to a poll by Thomson Reuters.

Revenues decreased 4% to $495.9 million from $514.8 million.

Transcontinental completed on March 1 its acquisition of the Canadian assets of Quad Graphics. The transaction is expected to allow the company to leverage more than $700 million in printing platform investments by further consolidating excess commercial printing capacity.

The deal is expected to add about $230 million in revenues and at least $40 million in added EBITDA over 12 to 24 months.

Transcontinental has been consolidating its production in a smaller number of modern plants as it increases its digital media offering.

The company is the largest printer in Canada and fourth-largest in North America. It is the leading publisher of consumer magazines and French-language educational resources and community newspapers in Quebec and the Atlantic provinces.

The Montreal-based company said Tuesday it would raise its dividend to 14.5 cents for both its class A and class B shares.

Media Articles

30 Under 30 is back with a new name, new outlook

No more age limit! The New Establishment brings 30 Under 30 in a new direction, starting with media professionals.

As Prime Minister, Kellie Leitch would scrap CBC

Tory leadership hopefuls are outlining their views on national broadcaster's future

‘Your Morning’ embarks on first travel partnership

Sponsored giveaway supported by social posts directed at female-skewing audience

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Netflix debates contributions with Canadian Heritage

Netflix remains wary of regulation as some tout 'Anne' and 'Alias Grace' partnerships

Canadians warm up to social commerce

PayPal and Ipsos research shows "Shop Now" buttons are gaining traction

Online ad exchange AppNexus cuts off Breitbart

Popular online ad exchange bans site for violating hate speech policy

Robert Jenkyn is back at Media Experts

Former Microsoft and Globe and Mail exec returns to the agency world

2016 Media Innovation Awards: The complete winners list

All the winning agencies from media's biggest night out!