Torstar reports increase in profit, ad revenue

Torstar Corp., publisher of the Toronto Star, has reported growth in the
second quarter of 2010 despite the high Canadian dollar.

The Toronto Star reports:

“Revenue was $376.5 million for the second quarter ended June 30. That’s up $2.8 million compared with the second quarter of 2009.

“Excluding the $12.4-million decrease from the stronger Canadian dollar, revenue was up $15.2 million, or 4.2 per cent in the quarter, the company said in a release.

“Net income was $22.7 million, or 29 cents a share, up from a loss of $4.4 million, or 6 cents per share, in the year-earlier period.

The Globe and Mail reports:

“The publisher of the Toronto Star and other community papers said Wednesday that a modest recovery in advertising, along with lower newsprint costs and savings from the largest restructuring in the company’s history, helped to drive growth.

“The national [advertising] category in particular, and particularly at the Star, has been quite strong,” said Torstar chief executive officer David Holland. Sales of automotive and financial advertising were particularly good at the national level, he said.

“However, the company cautioned that it is still feeling the effects of a difficult economic environment. Advertising in the real estate and employment categories remained slow, “which raises concern about the strength of the economic recovery,” said chief financial officer Lorenzo DeMarchi.”