COSTS EAT AWAY AT TORSTAR PROFIT
By Adnews Staff
Rising newsprint, labor and depreciation costs ate into the revenues of Torstar Corp.'s newspaper division. The publisher reported an 8% increase in revenues for the first three months of the year, driven mainly by a 6% climb in advertising sales. Operating profits fell to $13.2 million, compared to $14.8 million last year. Newsprint costs rose because Torstar increased the size of its main newspaper, The Toronto Star, adding new sections such as Greater Toronto. Earnings at Torstar's Metroland Printing, Publishing & Distributing were up 43% to $8.6 million. The increase was due to a 14% jump in advertising lineage and a 13% rise in the number of advertising inserts distributed. Non-newspaper operations such as CitySearch, Toronto Star Television and T-O Online, lost $1.7 million during the quarter. Overall, Torstar posted a 26% jump in net income to $21.7 million.