Transcontinental Sees Strong Improvement in Profitability
MONTREAL—June 8, 2010—During the second quarter of fiscal 2010, Transcontinental resumed organic growth in revenues and generated, for the fourth quarter in a row, an increase in adjusted operating income before amortization. The printing of the San Francisco Chronicle daily, the contribution of the Marketing Communications Sector and the stabilization of the market in certain traditional segments all made a specific contribution to organic growth in revenues.
• Growth of 18% in adjusted operating income before amortization compared to second quarter 2009, despite 4% decrease in revenues; on a comparable basis, revenues grew 2%.
• Increase of $211.3 million in net income applicable to participating shares, from a loss of $144.3 million to a gain of $67 million.
• Revenues of $510.0 million, down 4% from $531.1 million in the same quarter in 2009.
The solid advances in operating income stem from the full impact of the rationalization measures implemented in fiscal 2009 and continuous improvement of operational efficiency. Transcontinental also strengthened its financial position, which enabled it to invest in the digital development of its Media Sector and its marketing communication operations, as shown by the acquisition of LIPSO, a Canadian leader in mobile solutions.
“I am very satisfied with our second quarter results and the performance of the past four quarters, which have all been higher than the previous comparable quarters,” said François Olivier, President and Chief Executive Officer of Transcontinental. “We are systematically building the new Transcontinental by accompanying our customers with marketing strategies based on advertising personalization and the new communication platforms, while strengthening our traditional core business, which still provides extremely effective marketing tools. This strategy, combined with our employees’ efforts to innovate and improve every day, will allow us to take full advantage of the opportunities that are opening up in our niches.”