(Montreal) TC Transcontinental wants to extend the scope of its printed advertising distribution service outside Quebec, while the municipalities of Montreal and Mirabel have adopted more restrictive regulations regarding the Publisac.
Updated yesterday at 6:43 p.m.
“Our team has been working for I would say at least a year on how we could increase our presence outside of Quebec,” President and CEO Peter Brues said in a conference call with financial analysts after the close of trading on Wednesday. This work puts us in an advantageous position. »
Mr. Brues acknowledged that the distribution of flyers was in decline in the rest of Canada as was the circulation of printed newspapers. The idea would not be to expand the distribution network across Canada, but to find ways to reach the buyers of the Montreal company’s customers “no matter where they are”.
In Mirabel, in the Laurentians, where the city has adopted a membership distribution model (residents who want to receive the Publisac must apply for it), distribution has been done through Canada Post since the end of April.
The big boss of the printer and packer also said he was satisfied with the progress of the rapid transition, in Mirabel, from the distribution service by street vendors — which resulted in the loss of 16 jobs — to a system of postal shipments .
The change followed a Quebec Superior Court decision in late April that dismissed the printer’s motion to nullify the Mirabel settlement. Mr. Brues reiterated 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 the door-to-door distribution of the Publisac and entrusted it to Canada Post.
The transition seems to have gone smoothly, according to Mr. Brues. “The decision came down on a Wednesday and our team was able to get the ads to consumers without delay the following week. There were no changes to our service, it was completely smooth. »
The city of Montreal also intends to adopt a membership system starting in May 2023 and will require that the bags are no longer plastic.
According to the Mayor of the metropolis, Valérie Plante, approximately 800,000 flyers and other unsolicited advertisements end up in the metropolis each week, which represents more than 41 million flyers per year that end up in recycling depots and recycling sites. burial. Montreal aims to become zero waste by 2030.
During the phone call, Mr. Brues said he believed the Publisac remained relevant in an inflationary environment. “Flyers are extremely important for our customers as an advertising tool and in an inflationary environment they are just as important for consumers. »
Results
Transcontinental posted net income attributable to shareholders earlier Wednesday down more than 20% for its most recent quarter, which the printer and packager attributed to the end of a COVID-19 wage subsidy.
Last year’s results included assistance from the Canada Emergency Wage Subsidy of $7.5 million.
Still, the company beat analysts’ expectations in the second quarter (ended 1er may). Adjusted earnings per share were 48 cents, compared to 55 cents for the same period last year. Prior to the earnings release, analysts had expected a profit of 43 cents, according to data firm Refinitiv.
The Montreal-based company reported a profit of 28.3 million, or 33 cents per share, which compared with a profit of 35.6 million, or 41 cents per share, for the same period last year.
Revenues totaled $715.5 million, up 14.8% from $623.3 million a year earlier. Revenues from the packaging activities increased by 21% and those from the printing activities increased by 9%.
CIBC World Markets analyst Hamir Patel says the packaging segment performed better than expected, but said he was disappointed with 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.