In the wake of Sun Media's hatchet job on Tuesday, former Toronto Sun vet Maryanna Lewyckyj, a victim of one of the 2007 cutbacks, took a look at Quebecor's books.
She writes:
"Given the recent bloodbath at Sun Media, I decided to check Quebecor's third-quarter results to see how badly the newspaper division had fared in the first nine months of the year.
Here are the figures:
Nine-month newspaper revenue was $845.7 million, up from $721.6 million in the first nine months of 2007 (17% increase).
Nine-month operating profit was $170.5 million, up from $149.3 million in the first nine months of 2007 (14.2% increase).
By contrast, here are the Internet/Portals figures: Nine-month revenue was $38.3 million, up from $34.6 million in the first nine months of 2007 (10.7% increase)
Nine-month operating profit was $1.8 million, down from $4.1 million in the first nine months of 2007 (decrease of 56%).
Nine-month operating profit was $170.5 million, up from $149.3 million in the first nine months of 2007 (14.2% increase).
By contrast, here are the Internet/Portals figures: Nine-month revenue was $38.3 million, up from $34.6 million in the first nine months of 2007 (10.7% increase)
Nine-month operating profit was $1.8 million, down from $4.1 million in the first nine months of 2007 (decrease of 56%).
To put things in perspective, the operating profit of the Internet/Portals division equalled 1% of the operating profit of the newspaper division.
For a supposedly dying industry, the newspaper division is doing a lot more heavy lifting on the balance sheet than the online "platform."
Thanks for the input, Maryanna.
For a supposedly dying industry, the newspaper division is doing a lot more heavy lifting on the balance sheet than the online "platform."
Thanks for the input, Maryanna.
Pierre is putting in motion a self fulfilling prophecy. The man has an uncanny knack for killing off viable businesses and this is no exception.
ReplyDeleteReally, after all these cuts to content, who would want to buy a newspaper? But Pierre only sees "saving money", never "making money".
I'd say he was an evil genius...but evil buffoon is far more accurate.
The "problem" is not whether or not the paper makes a profit (which it always does), but rather that the rate of increase of that profit isn't rising fast enough. Another term for this highly complex business concept is "greed".
ReplyDeleteWhich is easier (i.e. cheaper) to do: increase revenue or decrease cost?
Increase revenue = invest time and money and put out a decent product. This requires planning, know-how and the belief that your staff can run the ball. Example: Globe and Mail.
Decrease cost = layoff staff. The game is hopeless, we don't stand a chance, so we're punting on the first down.
Does having PKP in charge remind anyone of the TV series Fawlty Towers?
I thank Maryanna for looking these figures up and sharing them.
ReplyDeleteAs a Sun Media worker, I think she hits the nail on the head when it comes to the frustrations being felt at this time.
There seems to be a clear message from the upper echelon that the time has come for all employees to buy into their 'new world' ideas and, in some ways, say goodbye to print media.
Yet, as she proves, newspapers still carry their weight quite nicely. For those with print in the heart, the next few years are going be painful, for sure.