Quebecor posts Q2 net loss of $45 million
The communications company saw an overall revenue increase of $8.6 million, but posted a $25.6 million loss in its news media segment.
This morning, Quebecor announced its second-quarter financials, which show an overall revenue of $1.09 billion for the period ended June 30, an $8.6 million increase over the second quarter of 2012. Despite increased revenues, Quebecor posted a $45.1 million net loss for its shareholders.
Quebecor attributed the positive revenue results to growth in its telecommunications segment, Videotron, which saw its revenues increase $30.6 million compared to the same period last year, and accounted for $678 million of the communications company’s overall revenues.
The company’s broadcast and leisure and entertainment segments were virtually unchanged, accounting for $113.6 million and $62.6 million of the company’s overall revenues, respectively.
Meanwhile, on the heels of last month’s announcement that Sun Media would slash 360 jobs and cease publication on 11 of its properties, Quebecor’s news media segment posted a $25.6 million loss compared to the same period last year, accounting for $229.2 million of Quebecor’s total revenues.
“In July 2013, Sun Media Corporation announced new restructuring measures that will entail the elimination of 360 positions, the closing of eight publications and three free urban newspapers, and efforts to enhance operational efficiencies,” Robert Dépatie, president and CEO, Quebecor, said in a statement. “The measures are expected to yield total annual savings of approximately $55 million. Sun Media Corporation intends to use the savings to support continued investment in and expansion of its newspapers and publications, particularly on digital platforms.”
The losses in the news media segment were attributed to a 14% decline in advertising revenue, a 9% dip in digital revenue and a 4% drop in circulation revenue.