Transcon revenues up, profit down slightly

Transcontinental Inc., Canada's largest consumer magazine publisher (though its magazine business is dwarfed by its printing interests) has released its latest quarterly results. Its results for the three months ended January 31 (see chart at left for the tracking of its stock price) were a profit of $27.9 million (31 cents a diluted share), compared with $29.1 million (33 cents diluted) a year earlier.

Total revenue was $547.4 million, up 6.2% from $515.3 a year earlier.The company said the gains were driven by marketing operations, including the U.S. business JDM bought in February 2005. Marketing revenue rose 10.4 per cent to $267.2 million, and operating profit in the division jumped more than 10 per cent. On the other hand, revenue in the highly competitive printing business rose a tiny 0.3 per cent to $171.6 million, but operating profit fell, while in the media business, including magazine publishing, revenue rose 3.6 per cent to $133.8 million. Profit was down slightly.

The company announced it will boost its dividend 18 per cent to 6.5 cents a share from 5.5 cents, effective in the second quarter .

Transcontinental shares rose 80 cents to $18.50 on the TSX after the announcement.