Torstar revenue sees second-quarter decline
The media co attributed its losses in the media segment to declines in print advertising revenue at newspapers, while digital losses were due to lower revenues at Wagjag.
This morning, Torstar reported its second-quarter financials, which show that total segmented revenue for the period ended June 30 was $354.9 million, down 7.5% from $383.9 million compared to the same period last year.
The numbers include a $4.9 million decrease in revenue at Metroland Media Group’s TMGTV, which was primarily due to lower product sales.
Media segment revenues, excluding the $4.9 million decrease in Metroland’s TMGTV, were down $16.6 million in the second quarter, due largely to declines in print advertising revenue at the newspapers that were partially offset by growth in distribution revenue at Metroland.
Despite increased profitability, digital revenues in the media segment also saw a second quarter dip, dropping 10.1% compared to the same period last year. The decline was primarily due to lower revenues at Wagjag, which were offset by growth in other digital properties. Digital revenues totaled 10.9% of media segment revenues.
Book publishing segment revenues were down $7.5 in the second quarter, as a result of the impact of foreign exchange, challenging economic conditions overseas and revenue declines in the direct-to-consumer channel in North America and overseas.
“In the media operations, print advertising revenues are likely to continue to be under pressure,” said David Holland, president and CEO, Torstar Corporation, in a statement. “We remain focused on cost reductions but are remaining disciplined in continuing to be invested in those areas of highest value to our customers. We also are continuing to pursue opportunities important to our future including building the Metro franchise across Canada and the introduction of the paywall at the Toronto Star.”