Transcontinental Reports Gains for Fiscal Year Despite Q4 Loss

Today, Transcontinental has over 120 Web sites whose revenues have increased 30% in the past year, from $13 million in 2007 to $17 million in 2008.

Marketing Communications Sector

• Once an acquisition has been completed, the challenge is to integrate the new business quickly, efficiently and smoothly. One of the highlights of 2008 was the successful integration of PLM Group and its 500 employees, which surpassed our forecasts for synergies. Located in Toronto, this Canadian direct marketing leader enriches the service offering in the Marketing Communications Sector and offers its clients database analytics, premedia, email marketing and custom communications services.
• In March, Transcontinental acquired ThinData Inc., Canada’s leader in permission-based email marketing. ThinData’s offering fits in perfectly with Transcontinental’s strategy to add new services and offer its customers unique business solutions and the growth objectives foreseen for the first year have been exceeded. ThinData works with Canada’s largest marketing and advertising agencies and has received many awards and prizes for its innovative campaigns. It has about 60 employees.
• In September, Transcontinental announced that it had acquired Rastar, Inc, a U.S. direct marketing company headquartered in Salt Lake City. Rastar specializes in interactive database marketing and variable data digital printing, which enable fully personalized marketing communications. Rastar has annual revenues of about US$50 million, a workforce of about 350 employees and a customer base that includes many Fortune 500 companies.
• Custom communications are an important part of Transcontinental’s marketing communications offering. In 2008, the Corporation first set up Transcontinental Custom Communications, a joint venture with Seven Squared, one of the top custom publishing agencies in the United Kingdom. Then in November, Transcontinental bought Redwood Custom Communications, a leading North American company headquartered in Toronto. Redwood provides turnkey publishing with personalized content for print and digital channels. Its services include data compilation, research and results tracking, and database marketing. The business has about 130 employees.
• Outsourcing is an asset for Transcontinental’s future growth, made possible by the Corporation’s great business credibility. In 2008, Loblaw joined other major Canadian retailers who have decided to outsource their premedia services to Transcontinental.

Printing Sector

• With respect to business development, in February Transcontinental signed an exclusive six-year contract to print all of Rogers’ 70 magazines, including Châtelaine, Maclean’s, L’actualité and Canadian Business. This contract, valued at $35 million - $40 million a year, is all new business for Transcontinental and takes effect on February 1, 2009. Transcontinental plans to develop this promising partnership by offering Rogers all of its products and services.