More bad news for Canada’s newspaper industry.
Torstar Corp. (T.TS.B), Canada’s largest daily newspaper by circulation, reported a loss in its fourth quarter as revenue continued to decline sharply year-over-year.
The publisher of the Toronto Star, many community newspapers and a number of digital and online properties, said it lost $3.1 million for the three months ended December 31, 2018, or four cents per share. The loss was primarily attributed to a steep decline in sales of print advertising.
That contributed to a $31.5-million loss for Torstar shareholders for full year 2018, which compared with a loss of $29.2 million in 2017. On an adjusted basis, Torstar said it earned a profit of 15 cents per share for the quarter, down from 32 cents a year earlier but above analyst’s estimates.
Analysts, on average, had forecast $143.58 million in revenue and nine cents per share of earnings after adjustments, according to Thomson Reuters. Senior executives of the company told analysts in a conference call that national print advertising plunged at both its daily brands and community newspapers, while print advertising from local accounts fell at a slower rate.
Operating revenue for the fourth-quarter totaled $144.9 million, down from $169.3 million a year earlier. Full-year revenue was down 11.7%, falling to $543.4 million from $615.7 million in 2017.
Torstar chief executive John Boynton acknowledged during the conference call that conditions in the print advertising market continue to be challenging, but there's been progress in its ongoing shift to new sources of revenue.
"After a year of very hard work required to lay the foundation to support key advances in data and digital subscriptions, and digital advertising capabilities, we are now beginning to see initiatives roll out in the marketplace," Boynton said.
