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RCO





Joined: 02 Mar 2009
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Location: Ontario

PostPosted: Wed May 03, 2017 2:24 pm    Post subject: Torstar corp reports another $million dollar loss Reply with quote

( it seems that much of Canada's newspaper industry is just hanging on as the CBC gets piles of cash from the liberals . Torstar's problems seem to be complex , it doesn't just own the star anymore but also many smaller local papers .

many of which are struggling to stay relevant , they send out a free local paper owned by metroland here but nobody much cares for it anymore . I remember years ago people used to pay $1 for it at store now they can't give it away for free . the paper is around half the size and features few important stories , most classifieds and yard sale listings have gone to sites like kiijiii instead and aren't even in paper . )



Torstar Corp reports $24.4 million loss on declining newspaper and digital revenues


Sean Craig | May 3, 2017 2:47 PM ET
More from Sean Craig | @sdbcraig


Torstar Corp, which owns the Toronto Star, the Hamilton Spectator and Metro commuter papers among others, plans to cut 110 jobs as print and digital revenues decline.


Torstar Corp. lost $24.4 million, or 30 cents per share, and cut 110 jobs in the first quarter of 2017, as the company’s core traditional revenue streams continued to plummet in line with broad media industry trends.

Digital revenues, where the newspaper company has vested much of its hope for future growth, also took a slight dip.

Shares of the company fell as much as 22.3 per cent to $1.29 in morning trading, before paring some of the losses. It was down 8.4 per cent at $1:52 at midday.


The loss, which covers the three months ended March 31, is an improvement over the same period last year when Torstar fell $53.5 million short.

Revenue at the publisher, which owns the Toronto Star, the Hamilton Spectator and Metro commuter papers among others, fell $18.1 million or 10 per cent year-over-year to $156.7 million in the quarter.

That decline was impacted in particular by print advertising revenue, which fell 19 per cent, and subscriber revenue, which fell 9.5 per cent.

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Torstar’s struggles to maintain print advertising and subscriber revenues are neither new nor surprising, as newspaper publishers in Canada and throughout the world have seen spending migrate rapidly to online competitors in the ad market, including tech giants like Facebook and Google, prompting job cuts and cost restructuring year after year. (Australia’s Fairfax Media, one of the largest publishers in that country and the owner of the Sydney Morning Herald and the Melbourne Age, announced Wednesday it will cut 125 staff, or a quarter of its newsrooms, in an effort to save AU$30 million.)

Torstar said the 110 positions that were eliminated related to “Metroland (Media)’s closing of a small printing plant and to the closing of a small mail room,” and said they will result in $5.3 million in annualized savings.

Meanwhile, the company’s digital revenues fell four per cent in the first quarter after marginal gains throughout 2016: it attributed that decline to weak performance at websites Workopolis, WagJag and Save.ca, while online forum operator VerticalScope, which Torstar holds a 56 per cent stake in, saw revenue grow $1.5 million or 18 per cent. Management said it expects print advertising declines to continue, but believes digital revenues will stabilize through 2017, including further growth at VerticalScope.

Torstar continued to wind down investment in its most ambitious project in recent years, the once promising tablet app Toronto Star Touch, noting that it made a $3.7 million lower net investment in the app during the first quarter.

Launched in the fall of 2015, Star Touch repeatedly failed to meet readership expectations: the company once trumpeted hopes of 200,000 weekly users, instead hitting a ceiling of 60,000.

Torstar’s new CEO John Boynton, who took over from David Holland in March, made a candid omission when asked on an investor’s call about continued take-up of the app, conceding that “the volume doesn’t look like it’s progressing at all.”

In an investment note, RBC Capital Markets analyst Drew McReynolds said Torstar’s results were “weaker than expected.” RBC estimated Torstar’s segmented revenues and earnings before interest, tax, depreciation and amortization would come in at $160 million and $9 million respectively, versus the $156.7 million and $2 million reported Wednesday.

McReynolds said the difference between EBITDA estimates and results was due to weak performance at the company’s Star Media Group, which operates the Toronto Star and Metro commuter papers, and Metroland Media, which operates weekly and community newspapers throughout Ontario

http://business.financialpost......l-revenues
RCO





Joined: 02 Mar 2009
Posts: 6763
Reputation: 240.7
votes: 3
Location: Ontario

PostPosted: Wed May 03, 2017 2:26 pm    Post subject: Reply with quote

'Fairly big decisions' are forthcoming for Torstar, new CEO says

Company reports $24.4 million lost in first quarter, but still an improvement over last year

The Canadian Press Posted: May 03, 2017 11:12 AM ET| Last Updated: May 03, 2017 1:20 PM ET

Torstar said cost cutting will remain an area of focus as the media company released quarterly results on Wednesday.



The new CEO of Torstar said Wednesday "everything is on the table" in his plans to transform the media giant to overcome ongoing declines in print advertising revenue.

John Boynton, who took over as the company's CEO and publisher of the Toronto Star at the end of March, said major changes are in store to better determine which consumers it wants to serve and what assets best address their needs.

"We won't be rounding at the edges," Boynton said in an interview after the company's annual general meeting.

"We'll be making some fairly big decisions."

His comments came as Torstar reported a $24.4 million loss for its first quarter, an improvement from last year when the comparable losses were more than twice as big.


Its shares fell more than 10 per cent in midday trading, down 17 cents to $1.49.

Torstar said it is aiming for $5.3 million in annualized savings from the 110 previously announced job cuts during the quarter.

"Cost reductions will remain an important area of focus," chief financial officer Lorenzo DeMarchi said in a conference call with analysts earlier in the day.

DeMarchi said restructuring measures already undertaken through the first quarter ended March 31 are expected to result in net savings of $13 million for the balance of the year.

http://www.cbc.ca/news/busines.....-1.4097095
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Torstar corp reports another $million dollar loss

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