Not a bad quarter for Transcontinental, earlier today they reported their second quarter earnings for 2012. The company saw an increase in revenues by 6% in the second quarter, from $498.7 million to $529.4 million, driven primarily by the acquisition of Quad/Graphics Canada, Inc. as well as numerous acquisitions and launches of community newspapers in Quebec, and new contracts such as Canadian Tire.
Transcontinental Q2 2012 Highlights:
- Closed the transaction for the indirect acquisition of the shares of Quad/Graphics Canada, Inc. and rapidly announced the reorganization of its print operations across Canada. The integration is on track to deliver more than $40 million in synergies as expected.
- Continued to develop its digital and interactive business by expanding its digital advertising representation deals and acquiring a majority stake in Redux Media.
- Renewed and expanded, since January 2012, six multi-year agreements valued at over $1.5 billion in revenues with major Canadian retail customers in the food, hardware, general merchandise and pharmaceutical verticals. These agreements have been extended for periods varying from three to six years and besides printing, include flyer distribution through Publisac in Quebec and often include many other products and services from the Corporation’s new marketing and media services, such as digital advertising representation, e-flyers, email marketing, mobile solutions, database analytics, premedia and custom communications.
- Recent management changes: On February 16th, Remi Marcoux stepped down as Executive Chairman of the Board andIsabelle Marcoux was elected Chair of the Board; on February 2nd, Alain Gignac was appointed Chief Marketing Activation Officer, a new senior management position with responsibility for the integration of print product and services, print and digital media, and interactive marketing solutions for major accounts; on May 9th, Natalie Larivière resigned as President of TC Media, effective end of June.
- Expanded its digital advertising representation by signing numerous deals and partnerships with Cinoche.com, PoolExpert, Hearst Digital Media and Homes Publishing Group
- Launched a television production house to create content for all communication platforms, from TV channels for general consumption to new Internet and mobile media for on-demand delivery. Also launched FRESH JUICE, a new healthy living media brand in collaboration with Loblaw Companies Limited.
- Broadened its extensive community newspaper network in Quebec by acquiring Édition Beauce and Courrier Frontenacand strengthened its position as the leader in the supplemental educational publishing market in Quebec by the acquisition of the shares of Les Éditions Caractère.
Now with a number of pieces in play, it will be interesting to see if Transcontinental can continue its current growth spree, and with having Redux Media as part of the puzzle which should help to drive more digital dollars.