Transcontinental on a roll as first quarter results up 4% in revenue

In its first quarter, Transcontinental Inc. recorded a 4% increase in revenue company and an increase in adjusted operating income of 9%, despite significant foreign exchange losses. Net income grew by 69%, from $20.2 million Q1 of 2007 to $34.1 million in 2008. On a per-share basis, net income rose 71%, from $0.24 to $0.41.

Consolidated revenues were $596 million, up from $572 million in the same quarter of 2007. Adjusted operating income rose to $ 82.4 million, compared to $75.7 million in 2007. A large part of these were the result of acquisitions such as that of the PLM Group, the company said, which more than offset exchange losses in U.S. and Mexican currencies.

Among the highlights of a busy quarter:

• the announcement that Transcontinental Media, Canada's largest consumer magazine publisher, announced that it had won the contract to print all Rogers' Publishing magazines, more than 70 titles, including Chatelaine, Maclean's, L'actualité and Canadian Business. This contract, valued at about $210 million, represents all new business for Transcontinental and takes effect on February 1, 2009, at which time Transcontinental will become the largest catalogue and magazine-printer in Canada.
• It also announced that in the fall of 2008 it will launch a French-language Canadian edition of More magazine, which targets the 40+ women's demographic, following on the successful launch of the English franchise (More is published by Meredith Corporation.)