Peladeau shakes up Sun Media management

[ErickMontreal]

Peladeau shakes up Sun Media management

 

The Canadian Press

November 7, 2008 at 11:09 AM EST

 

MONTREAL — Quebecor Inc. chief executive Pierre Karl Peladeau has shaken up the leadership of the company's media holdings while reporting a third-quarter profit of $45.6-million, reversing a loss of $35.2-million a year earlier.

 

Mr. Peladeau noted “disappointing results in publishing and at Sun Media,” and personally took leadership of Sun Media Corp. and the Canoe online operation.

 

Michael Sifton, president of Sun Media, “will be leaving the company as his position will now be undertaken by Mr. Peladeau,” Quebecor said in a release shortly after reporting its latest results.

 

Mr. Sifton had taken the job in September 2007 after Quebecor's takeover of his Osprey Media newspaper group of small Ontario newspapers.

Quebecor Inc.

 

“The speed with which business models are required to change, combined with an uncertain economic context and more difficult advertising conditions, calls for a clearly defined strategic and operational vision,” Mr. Peladeau said in a release.

 

“To ensure that our efforts and resources are better co-ordinated, I will now take charge the leadership of both our newspaper segment and our Web portal.”

 

The integration of Sun Media and Canoe under one leader “will help to maximize growth opportunities and synergies, and accelerate the migration of information and contents generated by the various publications to cross-platform supports,” Quebecor stated.

 

Added Mr. Peladeau: “Michael has played an important role, in particular by ensuring the smooth integration of two major publishers, and by preparing Sun Media Corporation's expansion in Internet and new digital technology. As such, he has contributed to the development of our vision for the future.”

 

In a separate statement, Mr. Sifton said: “I am happy to have been given the opportunity to integrate Osprey Media in Sun Media organization. I leave behind talented people and a strong team that will no doubt successfully take on the challenges that our changing environment is bringing.”

 

In its financial report, Quebecor said revenue increased by $73.5-million or 8.8 per cent to $908.1-million in the third quarter, with the improvement driven by the media and telecommunications group's Videotron cable subsidiary, Quebec's largest cable TV operator.

 

Quebecor said its net income was worth 70 cents per share, compared with a year-ago loss of 55 cents per share.

 

Income from continuing operations adjusted for one-time items edged up by $300,000 to $42.4-million, or 65 cents per share.

 

Cable-segment operating income grew 17 per cent to $28.7-million, and Quebecor confirmed plans to spend between $800-million and $1-billion over four years to build out a wireless network. This includes $554.6-million for operating licences.

 

“In a challenging business environment, Quebecor posted strong third-quarter 2008 results, driven by its cable segment, which continued logging substantial customer growth for all services,” Mr. Peladeau stated.

 

He noted that Quebecor has already arranged the funding for the 17 mobile-phone network licences, and “in these times of tight credit markets, it is important to mention that future investment in this project does not rely on access to capital markets; it will be funded through cash flow generation and available credit facilities.”

 

In early trading on the Toronto Stock Exchange, Quebecor shares fell 90 cents to $19.75, a drop of 4.4 per cent.

 

Quebecor Inc., with 52,000 employees is a major newspaper publisher, cable TV operator, television broadcaster and commercial printer. It also has operations in magazine and book publishing.

 

The holding company holds a 54.7 per cent stake of Quebecor Media Inc., which owns Videotron Ltd., the largest cable operator in Quebec and a major provider of Internet and telecom services, and Sun Media, a major newspaper chain with tabloid dailies across the country and other assets.

 

Other Quebecor Media holdings include TVA Group Inc., the largest French language TV network in Quebec, a number of specialty channels, the English language station Sun TV, and Canoe Inc., operator of a network of English- and French language Internet properties.