Transcontinental is reporting overall revenues of 2.1 billion dollars for 2013, virtually unchanged year over year. Net income was up 5.2% to 157 million dollars. The company credits the results to strong performance by the printing division, despite losing the printing and distribution contract for Zellers.
The Quebec based company publishes flyers, magazines and newspapers, including The Prince Albert Daily Herald.
Transcontinental earns most of its revenue through its printing business, but it also has a sizeable media division, which operates its weekly community and daily newspapers as well as more than 30 English and French magazines.
Transcontinental’s revenues for the fourth quarter declined from $585.1 million in 2012 to $566.3 million in 2013, mainly as a result of the difficult market conditions that affected the magazine and book printing operations. This decrease is also attributable to the soft advertising market that continued to impact the newspaper/media sector, mostly in local markets, and to the end of the contract to print and distribute Zellers flyers after its store closures.
The decrease was partially offset by new contracts in the Printing Sector. The printing business posted adjusted operating income for the quarter of $71.6-million on revenues of $390.4-million, while its media division reported adjusted income of $21.9-million on sales of $196.5-million.
In the newspaper/Media Sector, the company states the difficult market conditions with respect to advertising spending in local and national markets are likely to persist. As a result, the company will continue to cut costs to limit the potential impact on profit margins.
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