Newspaper group the Gleaner Company Limited has improved profits in its third quarter ending September 30, netting $61 million, or earnings per share of 5.1 cents, notwithstanding a heavy tax bill of $60 million.
Revenues were up 21 per cent from $1.16 billion to $1.4 billion in the quarter.
Operating profit also grew from $26 million in the third quarter of 2006 to $123.5 million in the review period, while pretax profits after net finance charges were a healthy $121.3 million compared to $30 million in the prior year.
(Gleaner Company is publisher of The Gleaner newspaper and its products, including Wednesday Business.)
The Gleaner's nine-month performance was also substantially better than last year's, tracking developments in the third quarter.
Net profit increased from $40 million to $117 million after taxes.
The parent and its subsidiaries posted revenues of $3.1 billion, up $454 million year to date September 30, but while the company's book and stationery business recorded more vibrant growth for a 24 per cent or $765 million contribution to turnover, the spotlight remained on the media segment whose operations accounted for 75 per cent or just under $2.4 billion of sales.
Pension surplus
Operating profit for the period more than tripled to $182.4 million, helped by a near $113 million of pension surplus credited to the profit and loss accounts in accordance with accounting rules, The Gleaner reported.
"The surplus is, however, not realised profit as it represents future economic benefits to be derived from the reduction in the company's contribution to the pension scheme," said the company in a note to the accounts.
Looking ahead, the newspaper group expects to realise greater operational efficiencies within the GV Media Group, following the liquidation of Vee Tee Ay Limited which should simplify the group structure. That process began in May.
The Gleaner is now in full control of GV Media, having reached an agreement November 15 to buy out radio group RJR's 20 per cent stake for £1.
business@gleanerjm.com
