Second Quarter 2015 Financial Highlights • Net revenues totaled $183.9 million, a 16% year-over-year increase. ◦ Consumer net revenues totaled $171.3 million, a 14% year-over-year increase.(1) ◦ Enterprise net revenues totaled $12.6 million, a 40% year-over-year increase.(1) • Second quarter 2015 represents the 58th consecutive quarter of year-over-year net revenue growth. • Included in net revenues is a change in accounting estimate related to flash deal deferred revenue breakage of $7.5 million. ◦ Excluding this amount, total net revenues totaled $176.4 million, an 11% year-over-year increase.(1) ◦ Excluding this amount, consumer net revenues totaled $163.8 million, a 9% year-over-year increase.(1)
Torstar Corporation today announced it has completed a transaction with Postmedia Network Inc. (“Postmedia”) relating to the purchase and sale of a number of community and daily newspapers.
As part of the transaction, Torstar has acquired eight weekly community publications, seven daily community newspapers and two free daily newspapers from Postmedia.
The daily publications are the Barrie Examiner, Niagara Falls Review, Northumberland Today, Orillia Packet & Times, Peterborough Examiner, St. Catharines Standard and Welland Tribune. The community papers are the Bradford Times, Collingwood Enterprise Bulletin, Fort Erie Times, Innisfil Examiner, Niagara Advance, Pelham News, Inport News (Port Colborne) and Thorold Niagara News.
As well, Torstar acquired the free dailies 24Hours Toronto and 24Hours Vancouver.
In addition, Torstar has sold 22 weekly community newspapers in eastern and southern Ontario and the Metro Winnipeg and Metro Ottawa free daily publications to Postmedia.
The community publications sold are the Brant News, Belleville News, Central Hastings News, Frontenac Gazette, Kingston Heritage, Kanata Kourier-Standard, Nepean/Barrhaven News, Orleans News, Ottawa East News, Ottawa South News, Ottawa West News, Stittsville News, West Carleton Review, Quinte West News, St. Lawrence News, Our London, St. Thomas/Elgin Weekly News, Exeter Times-Advocate, St. Mary’s Journal Argus, Stratford City Gazette, Norfolk News and Meaford Express.
“This transaction will allow us to operate more efficiently through increased geographic synergies in a number of our primary regions,” said John Boynton, President and CEO of Torstar Corporation. “By acquiring publications within or adjacent to our primary areas and selling publications outside our primary areas we will be able to put a greater focus on regions where we believe we can be more effective in serving both customers and clients.”
The transaction is effectively a non-cash transaction, as the consideration for the publications purchased is approximately equal to the consideration for the publications sold.
Synergies associated with this transaction are expected to contribute to an improvement in annualized operating earnings at Torstar in the range of $5 million to $7 million.