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

WINNIPEG – FP Newspapers Inc. (TSX:FP) 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.