Torstar Corp. saw a 50 per cent rise in paid digital subscriptions in the first quarter, as the company which owns the Toronto Star continues to build its digital-first strategy with offerings including a partnership with tech giant Apple.
The Toronto-based media company, which owns several daily and more than 80 weekly newspapers, as well as shares in a number of digital-only properties, had a net loss in the first quarter of $7.4 million (9 cents per share), up from a loss of $14.5 million (18 cents per share) in the same period of 2018. The first-quarter results also included a one-time gain of $18 million in digital media tax credits.
“We continued to make good progress on our journey towards a digital future that combines the power of data with our deep roots in journalism to develop new and growing digital subscription and advertising revenue streams,” said John Boynton, president and CEO of Torstar, and publisher of the Toronto Star.
During the first quarter, Torstar entered into a partnership with Apple which will see Star content made available on Apple News +, Apple’s new paid subscription service which launched in late March. The Star receives a share of Apple News + subscription revenue, and can also sell ads to be paired with Star content on the service.
The company also said it ended the quarter with over 15,000 digital-only paid subscribers on thestar.com, up from almost 10,000 at the end of 2018.
In 2018, Torstar began a major national expansion of its Metro urban commuter newspapers, providing enhanced original news content to customers in Vancouver, Calgary, Edmonton and Halifax.
That content is among the offerings now available on thestar.com. Content of thestar.com has been further strengthened with Torstar’s 2018 acquisition of iPolitics, an Ottawa-based specialized provider of in-depth coverage of federal and provincial politics and policy developments.
The company saw $22 million in print advertising revenue for its daily papers in the first quarter, down from $29 million a year ago, while print advertising in its community papers fell to $19 million from $22.8 million. Subscription revenue across the company rose slightly to $29.6 million from $29.5.
“We remain pleased with the performance of our subscriber revenue and flyer distribution revenue which represent a significant portion of our revenue base ... These categories are a source of strength for us as we focus our efforts on growing new digital revenue streams while managing declines in print advertising,” Boynton said.
Torstar ended the quarter with $52 million in cash and cash equivalents, and has no debt.
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