Torstar, 2Q Net Up On Free Papers, Will Launch Gossip Weekly

By: E&P Staff Torstar Corp. is publisher of the Toronto Star, Canada's largest daily newspaper, but its smaller free and community papers helped it report a 0.8% increase in net income for the second quarter.

Separately, Torstar announced that its subsidiary Toronto Star Newspapers Ltd. would launch a glossy weekly celebrity magazine, Weekly Scoop, in October.

"Celebrity news is the hottest and fastest growing category in magazines," the company said in its announcement. "The launch of Weekly Scoop magazine is part of a strategy to accelerate growth by leveraging existing strengths and relationships."

Kathryn Swan, most recently publisher of Roger Media's Money Sense magazine, was named publisher. Vivian Vassos, who was most recently managing editor of Roger's Flare magazine, was named the new magazine's editor-in-chief.

In its reporting of second-quarter results, Torstar said its net income increased to C$36.1 million, or U.S.$29.1 million, from C$35.8 million in the same period in 2004. In terms of fully diluted earnings per share, the increase was to 46 Canadian cents per share from 44 Canadian cents in 2004.

One U.S. dollar is roughly $C1.24.

Torstar said its total revenues were C$405.4 million in the quarter, up C$6.4 million from C$399.0 million in 2004.

Newspaper revenues accounted for C$272.7 million of those revenues, up 3.7% from last year's second quarter.

Revenues at the flagship Toronto Star declined C$7.1 million in the second quarter, and are down C$8.9 million year to date. Torstar said ad linage is off 8.6%, although Star circulation revenues were up C$400,000 in the quarter, "reflecting the increases in home delivery and single copy prices."

Torstar said the Star's losses were more than offset by strong performances by Metroland and CityMedia, the units that publish the free Metro dailies in several Canadian cities and include the company's digital ventures. During the second quarter, Torstar also bought a number of community papers, including The Bracebridge Examiner, The Gravenhurst Banner, The Muskokan, the Meaford Express, the Thornbury Courier-Herald, the Parry Sound North Star and the Parry Sound Beacon Star.