TC Transcontinental wants to extend the scope of its print advertising distribution service outside of Quebec, while the municipalities of Montreal and Mirabel have enacted stricter regulations regarding Publisac.
Our team is working for I say at least a year on how we can grow our presence outside of Quebec, President and CEO Peter Brues said in a conference call with analysts. financials after the close of trading on Wednesday. This work puts us in a good position.
Mr. Brues acknowledged that the distribution of flyers was declining in other parts of Canada as was the circulation of printed newspapers. The idea is not to expand the distribution network across Canada, but to find ways to reach the company’s Montreal customers. no matter where they are .
In Mirabel, Laurentians, where the city has adopted a membership distribution model (residents who want to receive Publisac must apply for it), the distribution has been done through Canada Post since the end of April .
The big boss of the printer and packer also said he was pleased with the progress of the rapid transition, at Mirabel, from a street vendor distribution service – which resulted in the loss of 16 jobs – to a postal system. shipment. .
The change follows a Quebec Superior Court decision in late April that dismissed the printer’s motion to overturn the Mirabel settlement. Mr. repeated. Brues on Wednesday that the company intended to appeal the judgment.
Following the Court’s decision, the company decided that the membership model was not viable for Publisac’s door-to-door distribution and entrusted it to Canada Post.
The move seems to have gone smoothly, according to Mr. Brues. The decision fell through Wednesday and our team was able to deliver the ads to consumers without delay next week. There are no changes to our service, it is completely fixed.
The City of Montreal also aims to adopt a membership system beginning in May 2023 and will require that bags no longer be made of plastic.
According to the Mayor of the metropolis, Valérie Plante, approximately 800,000 flyers and other unsolicited advertisements go to the metropolis each week, representing more than 41 million flyers per year that go to recycling depots and recycling sites. funeral. Montreal aims to be zero waste by 2030.
During the phone call, Mr. Brues said he believed Publisac remained relevant in an inflationary environment. Flyers are very important for our customers as advertising tools and in an inflationary environment they are just as important for consumers.
Revenue increased
Transcontinental posted net income attributable to shareholders last Wednesday when it dropped more than 20% for its most recent quarter, which the printer and packager attributed to the end of a COVID-19 wage subsidy.
Results last year included assistance from the Canada Emergency Wage Subsidy of $ 7.5 million.
However, the company beat analysts ’expectations in the second quarter (ended May 1). Adjusted earnings per share were 48 cents, compared to 55 cents for the same period last year. Prior to the release of earnings, analysts expected a profit of 43 cents, according to data firm Refinitiv.
The Montreal company reported profit of $ 28.3 million, or 33 cents per share, compared to profit of $ 35.6 million, or 41 cents per share, for the same period last year.
Revenues reached $ 715.5 million, up 14.8% from $ 623.3 million earned last year. Revenues from packaging activities increased by 21% and those from printing activities increased by 9%.
CIBC World Markets analyst Hamir Patel said the packaging segment performed better than expected, but he said he failed in the performance of the printing sector.
Transcontinental shares gained 36 cents, or 2.26%, to $ 16.27 at the close of the Toronto Stock Exchange.
Source: Radio-Canada
