<PAGE> 1
Exhibit 99.1
PRESS RELEASE
HOLLINGER INC.
HOLLINGER 2000 FIRST QUARTER RESULTS
TORONTO, May 29, 2000 -- Hollinger Inc., (TSE: HLG.C) today
announced its CONSOLIDATED FINANCIAL RESULTS FOR THE THREE MONTHS ENDED MARCH
31, 2000 with comparison to the three months ended March 31, 1999.
<TABLE>
<CAPTION>
PER RETRACTABLE COMMON SHARE
THREE MONTHS ENDED MARCH 31 THREE MONTHS ENDED MARCH 31
--------------------------- ----------------------------
2000 1999 2000 1999
----- ------ ------ ------
(MILLIONS OF CDN. DOLLARS) (CDN. DOLLARS)
<S> <C> <C> <C> <C>
Total revenue 811.9 811.7 n/a n/a
EBITDA 151.6 139.7 n/a n/a
Net earnings before the effects of
unusual items 2.0 (0.5) $ 0.05 $ (0.01)
</TABLE>
HOLLINGER INC.
CONSOLIDATED STATEMENT OF EARNINGS
($000'S)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31
---------------------------------
2000 1999
-------- ---------
<S> <C> <C>
REVENUE
Sales $809,506 $ 804,007
Investment and other income 2,385 7,714
-------- ---------
811,891 811,721
-------- ---------
EXPENSES
Cost of sales and expenses 657,859 664,333
Depreciation and amortization 55,803 58,659
Interest expense 66,101 62,319
-------- ---------
779,763 785,311
-------- ---------
NET EARNINGS (LOSS) IN EQUITY ACCOUNTED COMPANIES 639 (223)
NET FOREIGN CURRENCY GAINS (LOSSES) 490 (1,239)
-------- ---------
EARNINGS BEFORE THE UNDERNOTED 33,257 24,948
Unusual items 37,194 323,162
Income taxes (28,121) (135,769)
Minority interest (29,366) (102,932)
-------- ---------
NET EARNINGS $ 12,964 $ 109,409
======== =========
NET EARNINGS PER RETRACTABLE COMMON SHARE $ 0.35 $ 3.33
======== =========
</TABLE>
- more -
<PAGE> 2
Earnings before unusual items, income taxes and minority interest were $33.3
million for the three months ended March 31, 2000 as compared to $24.9 million
for 1999.
Reported earnings for the quarter compared to last year have been affected by
several major items.
The National Post EBITDA loss for the first quarter 2000 was $11.1
million, a $6.4 million improvement over the EBITDA loss of $17.5 million
in the first quarter of 1999, reflecting a 44% increase in revenue
year-over-year.
Unusual items in 1999 include the gain on sale of community newspapers by
Hollinger International Inc. In 2000, unusual items include gains on the
disposition of the Company's interest in Trip.com and a partial
disposition of its interest in Interactive Investor International (III).
The Company retains a 29% interest in III.
Interest expense for the quarter rose over 1999 as a result of increased
interest rates and increased debt levels.
First quarter revenue from Internet operations grew from $1.8 million in
1999 to $6.4 million in 2000 reflecting the expanding success of these
operations. Internet related EBITDA losses grew from $2.4 million to $5.8
million over the same time frame as Hollinger continues to build and
improve various Internet sites associated with the newspaper operations.
Hollinger is a Canadian-based international newspaper company that, through its
subsidiaries, is engaged in the publishing, printing and distribution of
newspapers and magazines in the United Kingdom, the United States, Canada and
Israel. Web sites are operated at all of its major newspapers. It owns the
Canada.com national portal site and a variety of other specialized sites.
Through its Hollinger Digital subsidiary, it has taken investment positions in
various Internet-based companies.
More detailed information about the operations of Hollinger International Inc.,
and its divisions and subsidiaries may be found in their press release dated
April 27, 2000.
For more information please call:
J. A. Boultbee
Executive Vice-President
and Chief Financial Officer
Hollinger Inc.
(416) 363-8721
