Torstar Corporation reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported operating revenue of CAD 143,171,000 against CAD 161,757,000 a year ago. Operating profit was CAD 9,771,000 against loss of CAD 8,013,000 a year ago. Net income from continuing operations was CAD 4,849,000 or CAD 0.06 per Class A (voting) and Class B (non-voting) basic and diluted share against loss of CAD 7,499,000 or CAD 0.10 per Class A (voting) and Class B (non-voting) basic and diluted share a year ago. Net income attributable to equity holders of the company was CAD 4,848,000 against loss of CAD 6,988,000 a year ago. Net loss attributable to equity holders of the company per Class A (voting) and Class B (non-voting) basic and diluted share was CAD 0.06 against CAD 0.09 a year ago. Cash flow from operating activities was CAD 3,013,000 against cash used in operating activities of CAD 6,160,000 a year ago. Additions to property, plant and equipment and intangible assets were CAD 2,149,000 against CAD 2,820,000 a year ago. Adjusted EBITDA was CAD 22,089,000 compared to CAD 10,474,000 a year ago. Adjusted earnings per share were CAD 0.16, an improvement of CAD 0.19 per share relative to the second quarter of 2017.

For the six months, the company reported operating revenue of CAD 272,143,000 against CAD 300,433,000 a year ago. Operating loss was CAD 6,139,000 against CAD 27,118,000 a year ago. Net loss from continuing operations was CAD 16,011,000 or CAD 0.20 per Class A (voting) and Class B (non-voting) basic and diluted share against CAD 31,896,000 or CAD 0.40 per Class A (voting) and Class B (non-voting) basic and diluted share a year ago. Net loss attributable to equity holders of the company was CAD 9,654,000 against CAD 31,266,000 a year ago. Net loss attributable to equity holders of the company per Class A (voting) and Class B (non-voting) basic and diluted share was CAD 0.12 against CAD 0.39 a year ago. Cash used in operating activities was CAD 11,507,000 against CAD 17,834,000 a year ago. Additions to property, plant and equipment and intangible assets were CAD 5,660,000 against CAD 5,052,000 a year ago. Adjusted loss per share was CAD 0.04.

The company, on a same store and comparable timing basis as well as adjusting for the closure of certain retail clients in 2017, flyer distribution revenues declined 5% through the end of the second quarter and the company expects this trend to deteriorate slightly in the balance of the year. On a same store and comparable timing basis, subscriber revenues were almost flat through the end of the second quarter, however, the company expects this will decrease marginally in the balance of 2018 as the company continue to increase focus on subscriber profitability. Overall digital revenue at the Community Brands and Daily Brands is expected to continue to grow in the balance of 2018 benefiting from growth at thestar.com and in local digital advertising at both the daily newspaper sites and the community sites partially offset by expected continued declines in other digital verticals. The company continues to expect that synergies from this transaction will contribute to an improvement in operating earnings in the range of CAD 5 million to CAD 7 million for the full year (CAD 4.3 million in the first six months of 2018). The company anticipates that capital expenditures for the full year 2018 will be in the range of CAD 15 million- CAD 16 million, including approximately CAD 5 million - CAD 6 million of capital spending related to technology platforms in connection with the company's transformation activities.