CEO Olivier expects a better 2012 if ad market “remains stable”
Canadian media company and publisher Transcontinental expects printing revenues to get a boost this year after a slow start, helped by the recent acquisition of Quad/Graphics’ Canadian operations.
“It strengthens our print business going forward, given the industry dynamics,” chief executive Francois Olivier said Tuesday, after Transcontinental’s net profit slipped to a first-quarter loss due to a tax reassessment.
Olivier said he expects the Canadian Quad/Graphics acquisition to generate about $230 million in revenues on an annualized basis, adding that Transcontinental is finalizing a plan to integrate the operations.
Transcontinental recently acquired all of Quad/Graphics’ Canadian operations outside Vancouver, in exchange for its profitable Mexican operations and export-oriented black and white book publishing business.
“We expect total printing revenues to increase over the next year due to the contribution of the Quad/Graphics Canada acquisition as well as new contracts signed last year,” Olivier said, noting a contract with retailer Canadian Tire.
Olivier said the strength of the advertising market will also play a role in the company’s performance this year.
“If the advertising market remains stable, we expect to improve our performance in the balance of the year given the lift from the Quad/Graphics Canada acquisition, the full impact of new contracts and the benefits related to the integration of our media and interactive sectors.”
