Canadian Press
NJN editor – “FPLP owns and publishes the Winnipeg Free Press and the Brandon Sun. In November 2001, FPLP acquired these newspapers and their related businesses from The Thomson Corporation.” fpnewspapers.com
WINNIPEG — FP Newspapers Income Fund (TSX:FP.UN), majority owner of the Winnipeg Free Press and Brandon Sun, reported Wednesday a drastically lower fourth-quarter profit of $300,000 at its operating unit and announced it has cut the equivalent of 26 full-time positions. The fund, which holds a 49 per cent interest in operating unit FP Canadian Newspapers LP, said its earnings amounted to five cents per share, down from a year-earlier $3.2 million or 47 cents per share. The company said its restructuring efforts during the quarter resulted in a $400,000 charge and the reduction of 26 full-time equivalent positions from not filling six vacant positions and 20 layoffs.
“The economic slowdown affecting most businesses is having a significant impact on all media operations as retailers and manufacturers reduce advertising spending,” the company said in a statement. “These reductions, which we started to see in the two months following the October strike, can occur quickly and can be deep.”
FP said its restructuring plan will reduce compensation expenses by about $1.3 million a year.
In addition to the Free Press and Sun dailies, FP operates Canstar Community News Ltd.’s five weekly newspapers, a weekly entertainment newspaper and a twice-monthly newspaper aimed at age 50-plus readers in Winnipeg. It also operates delivery businesses in Winnipeg and Thunder Bay, Ont.
Revenue dropped 16.7 per cent to $27.7 million, affected by the loss of 16 Winnipeg Free Press publishing days and some Canstar publications due to a strike by unionized workers. That came on top of pressures from a widespread contraction in advertising spending in the economic slowdown.
The operating unit reported a total net loss of $500,000 million in the quarter compared to net earnings of $4.6 million in the same quarter last year. Fourth-quarter advertising revenues fell 15.8 per cent to $19.8 million. Units in the fund were down 26 cents or 6.7 per cent to $3.62 in Wednesday trading on the Toronto Stock Exchange.
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