Transcontinental’s Q1 profits grows 36 per cent despite lower revenues
MONTREAL — Transcontinental Inc. was more profitable than expected in the first quarter as its net earnings grew 36 per cent to $58.2 million despite lower revenues caused by the sale of newspapers in Atlantic Canada and Quebec.
The Montreal-based company says it earned 75 cents per share for the period ended Jan. 28, up from 55 cents per share a year earlier when net profit was $42.7 million.
Excluding restructuring costs, asset impairments and the impact of U.S. tax reform, adjusted earnings were $48.6 million or 63 cents per share.
That’s up 17.7 per cent from $41.3 million or 53 cents per share in the first quarter of 2017.
Net revenues were $501.7 million, down from $503.6 million a year earlier.
Transcontinental was expected to post 56 cents per share in adjusted profits on $476 million of revenues, according to analysts polled by Thomson Reuters.
Excluding the acceleration of deferred revenues related to the transfer of the printing operations for the San Francisco Chronicle to Hearst, adjusted revenues were $461.9 million. The 8.3 per cent decrease stemmed largely from the sale of Transcontinental’s media assets.
Transcontinental says its quarterly dividend is increasing by five per cent, or one penny to 21 cents per share. It is payable April 11 to shareholders of record on March 26.
Canada’s largest commercial printer, which has been diversifying into flexible packaging, says it expects printing revenues from retailers will remain relatively stable in 2018.
However, it expects revenues in all other printing areas to continue to be hurt by a volume decline caused by reduced printed advertising.
Companies in this story: (TSX:TCL.A)
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