This increase in revenues was mitigated mainly by a decrease in flyer printing volumes as a result of the loss of an American customer and the consolidation of two brands by a customer in Canada. In addition, the transformation of the advertising market continues to impact the results of most of the corporation’s other niches.
“The increase in our revenues and profitability in the second quarter was once again supported by our strategic decisions,” said François Olivier, president and CEO of TC Transcontinental. “The diversification of our operations into flexible packaging, the consolidation of the weekly newspaper market in Quebec and our efforts to optimize our cost structure were all factors that contributed to the growth of our results in an advertising market in transformation.
“We keep generating significant cash flows that will allow us to continue investing in our flexible packaging division and the development of our digital offering to our various customers, in particular local advertisers and retailers,” Olivier added.
Adjusted operating earnings went from $55.5 million to $61.6 million in the second quarter of 2015, an increase of 11.0%. Adjusted net earnings applicable to participating shares grew 13.7%, from $34.4 million, or $0.44 per share, to $39.1 million, or $0.50 per share.
Adjusted operating earnings in the first half of 2015 went from $102.8 million to $117.3 million, an increase of 14.1%. Adjusted net earnings applicable to participating shares grew 21.4%, from $63.7 million, or $0.82 per share, to $77.3 million, or $0.99 per share.