You are viewing your 1 free article this month. Login to read more articles.
Harlequin has posted a drop in revenues and earnings in the first quarter of 2014.
Parent company Torstar posted results for its first quarter today (7th May), less than a week after the announcement that News Corp has agreed to purchase Harlequin in a deal for C$455m in cash (£246m).
Harlequin had operating earnings in the first three months of 2014 of C$99.2m (£53.7m), down from C$102.6 (£55.5m), in the same period of 2013, a drop of 3.2%
EBITDA fell to C$13.9m (£7.5m) in 2014, down 23.6% from C$18.2m (£9.9m) in 2013.
David Holland, president and c.e.o. of Torstar, said that lower results for Harlequin had been anticipated due to a strong first quarter in 2013. The company said: "Harlequin anticipated that earnings would be lower in the first quarter of 2014 relative to the very strong results posted in the first quarter of 2013 which represented the strongest quarter of 2013. Harlequin’s underlying revenues were stable in the first quarter of 2014 relative to the fourth quarter of 2013.
"Looking forward to the balance of the year, with comparable earnings less challenging for the remaining three quarters of 2014, Harlequin’s results in the balance of 2014 are expected to be relatively stable compared to 2013, including the benefit of foreign exchange."
The results also showed that digital growth had continued, but without enough of a rise to counter a drop in print revenue. Global digital revenues were 25.1% of total revenue in the first quarter, rising from 23.4% in the same period in 2014, and also up from 23.2% in the last quarter of 2013.
The statement added: "Torstar’s 2014 results will be dependent upon the timing of the anticipated closing of the announced agreement to sell Harlequin."
In a statement released by News Corp announcing the acquisition last week, the company said it hoped for regulatory approval to conclude in autumn 2014. News Corp chief executive Robert Thomson. said: "Harlequin is a perfect fit for the new News Corp, vastly expanding our digital platform, extending our reach across borders and languages, and is expected to provide an immediate lift to earnings."