A strong Canadian dollar drove sales lower at Harlequin in the second quarter, but profits still rose in the period. Parent company Torstar reported that second quarter sales at Harlequin fell 5%, to C$117.8 million ($114 million), while operating profit increased 3.5%, to C$20.4 million. Excluding the impact of foreign exchange, revenue would have increased by C$6.2 million in the quarter. Sales in Harlequin’s direct-to-consumer segment and Overseas division rose in the quarter, offsetting declines in the North America retail market.
The strong Canadian dollar cut profit gains by C$2.3 million. Profit performance followed the sales trend line—earnings rose in North America direct-to-consumer and Overseas and fell in North America retail.
Torstar said it expects first half trends to carry through into the second part of 2010. The growth in North America digital sales (reported in the direct-to-consumer segment) plus the acquisition of the other half of the German joint venture announced in April is expected to offset declines from the Softbank deal in Japan, lower North America Retail sales and the negative impact of foreign exchange.
For the first six months of 2010, revenue fell 4.4%, to C$230.6 million, while profits increased to C$43.1 million from C$40.3 million
