(Adds details from statement, background)
July 30 Canada's Torstar Corp reported
a 7 percent fall in revenue at its media business, which
publishes the country's largest daily newspaper, the Toronto
Revenue in the media business fell to C$237.3 million
($218.45 million) as the company continued to struggle with low
print advertising sales.
Torstar, almost one-quarter owned by Prem Watsa's Fairfax
Financial Holdings Ltd, said print advertising revenue
was likely to remain under pressure for the rest of the year.
The publisher recently slashed costs in an attempt to
counter shrinking ad sales.
Torstar agreed in May to sell its Harlequin romance-novel
publishing business to News Corp, in a deal that calmed
investor fears that the publisher would have to cut its dividend
The move has made the company more reliant on a recovery in
ad sales, which have been shifting to the online platform,
though not fast enough to counter falling print ad revenue.
Torstar also aims to make up for losses in its traditional
print business by charging readers for access to the online
version of the Toronto Star.
The company reported adjusted second-quarter operating
revenue of C$225.6 million, missing the average analyst estimate
of C$229.5 million, according to Thomson Reuters I/B/E/S.
Excluding restructuring and other costs, Torstar earned 20
Canadian cents per share, below the analysts' estimate of 23
Canadian cents per share.
The Toronto-based publisher said its net income from
continuing operations rose to C$18.1 million, or 23 Canadian
cents per share, for the second quarter ended June 30, from
C$12.6 million, or 16 Canadian cents per share, a year earlier.
($1 = 1.0863 Canadian Dollars)
(Reporting by Alastair Sharp in Toronto and Sayantani Ghosh in
Bangalore; Editing by Joyjeet Das and Simon Jennings)