Torstar Corp., publisher of the Toronto Star, reported higher profit and revenues in the final three months of 2010, driven by growth in media operations and ongoing efforts to control costs.
The results capped off a strong performance for the year, the company said as it released the earnings report Wednesday.
“We are pleased with our fourth quarter operating results, finishing off a very successful 2010 for Torstar,” president and chief executive David Holland said in a release.
“The media operations were responsible for the earnings growth, benefitting from modest revenue recovery and ongoing efforts to control costs.”
Torstar’s revenue was $416.1 million for the three months ended Dec. 31, up 5.4 per cent from the fourth quarter of 2009.
Pre-tax earnings for the fourth quarter were $71.5 million, up $1.9 million from the year-earlier period.
For 2010, Torstar posted revenues of $1.48 billion, up 1.9 per cent from 2009. Pre-tax earnings were $233.6 million, up 22 per cent from 2009.
In addition to the Star, Torstar’s holdings include Metroland community newspapers and Harlequin books. Its digital properties include thestar.com and Workopolis.
“We continue to be cautious about the nature of the economic recovery and its impact on the media revenue base,” Holland said. “At Harlequin, we are expecting stable underlying operating results in an increasingly digital book publishing environment but will feel the negative effects of a strong Canadian dollar.”
Revenue in the media segment was $296.1 million in the fourth quarter, up 8.6 per cent from the year-earlier period, driven by digital, distribution revenues, print advertising, and product sales at TMGTV, Metroland’s teleshopping business, the company said.
Book publishing revenue was $120 million for the fourth quarter, down $2.2 million from the 2009 period.
In September, Torstar announced that it had struck a deal to sell its 20 per cent interest in CTVglobemedia for cash proceeds of about $345 million.
On Dec. 31, Torstar received $40 million in connection with the transaction, which is expected to close mid-year.
Net debt was $368.8 million at Dec. 31, down $147 million from the previous year-end.