Torstar reports $70.8-million loss in third quarter
Torstar said restructuring initiatives it made earlier this year will save the company $26.8 million, but it expects print advertising revenues are likely to continue to be under pressure.
Torstar, the parent company of the Toronto Star and Metroland newspapers, posted a $70.8-million loss in its third quarter. Revenue at the media division made up $227.4 million of the company’s total revenue, which was $20 million less than the previous year.
“Ad revenue fell 16 per cent at the Star over the summer, at a time when the paper’s profile was skyrocketing thanks to its coverage of Toronto Mayor Rob Ford and his troubles,” The Globe and Mail reported.
Torstar said restructuring initiatives it made earlier this year will save the company $26.8 million.
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“The media segment continued to face challenges as a result of shifts in spending by advertisers combined with economic uncertainty,” the company said in a statement. “For the balance of the year, print advertising revenues are likely to continue to be under pressure.”
Revenues in the media operations were down $1.6 million, “an accomplishment given the continued pressures on print advertising revenues,” the company added.
“We were encouraged that our community media operation, Metroland Media, grew earnings in the quarter,” the company said.