Wednesday, 15 August 2012

FP Newspapers profit falls as lower ad sales cut into partnership’s revenue

FP Newspapers profit falls as lower ad sales cut into partnership’s revenue

Published on Wednesday August 15, 2012 WINNIPEG —
FP Newspapers Inc. had a smaller second-quarter profit as a decline in ad sales cut into revenue at the limited partnership that publishes the Winnipeg Free Press and Brandon Sun.
FP Newspapers earned $1.3 million of 19.2 cents per share in the second quarter, a $500,000 decline from the year-earlier period.

The Winnipeg-based company is entitled to 49 per cent of the distributable cash generated by FP Canadian Newspapers Limited Partnership, which operates a number of publishing, printing and distribution businesses in Manitoba.
The partnerships revenue for the three months ended June 30 was $28 million, down $1.9 million or 6.3 per cent from a year earlier.
Advertising revenue at the partnership was $19 million, down $1.8 million or 8.8 per cent.
Lower operating expenses partially offset the decline in revenue, which is part of a long-term trend among traditional newspaper businesses as readers and advertisers switch to other forms of media.
FP says operating expenses were $23.7 million, down $500,000 or 2.1 per cent, as after seven positions were eliminated to offset a two per cent increase in wages under collective agreements with unionized employees.

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