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Exhibit 99.1
PRESS RELEASE
HOLLINGER INC.
2000 SECOND QUARTER RESULTS
TORONTO, August 25, 2000 -- Hollinger Inc., (TSE: HLG.C) today
announced its CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30,
2000 with comparison to the six months ended June 30, 1999.
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<CAPTION>
PER RETRACTABLE COMMON SHARE
THREE MONTHS ENDED SIX MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30 JUNE 30 JUNE 30
2000 1999 2000 1999 2000 1999 2000 1999
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(MILLIONS OF CDN. DOLLARS) (CDN. DOLLARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total revenue 863.6 824.2 1,675.5 1,635.9 n/a n/a n/a n/a
EBITDA 169.8 159.7 321.5 299.4 n/a n/a n/a n/a
Net earnings (loss) before
the effects of unusual
items (0.9) (0.4) 1.1 (0.9) $(0.02) $(0.01) $0.03 $(0.03)
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HOLLINGER INC.
CONSOLIDATED STATEMENT OF EARNINGS
($000's)
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<CAPTION>
THREE MONTHS ENDED JUNE 30 SIX MONTHS ENDED JUNE 30
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Revenue
Sales $ 860,829 $ 818,985 $ 1,670,335 $ 1,622,992
Investment and other income 2,781 5,222 5,166 12,936
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863,610 824,207 1,675,501 1,635,928
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Expenses
Cost of sales and expenses 691,025 659,268 1,348,884 1,323,601
Depreciation and amortization 56,276 56,589 112,079 115,248
Interest expense 69,745 62,566 135,846 124,885
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817,046 778,423 1,596,809 1,563,734
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Net earnings in equity accounted companies 582 1,128 1,221 905
Net foreign currency gains 762 5,111 1,252 3,872
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Earnings before the undernoted 47,908 52,023 81,165 76,971
Unusual items 2,903 124,334 40,097 447,496
Income taxes (27,515) (71,495) (55,636) (207,264)
Minority interest (23,538) (58,196) (52,904) (161,128)
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Net earnings (loss) $ (242) $ 46,666 $ 12,722 $ 156,075
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Net earnings (loss) per retractable
common share $ (0.01) $ 1.42 $ 0.34 $ 4.75
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Reported earnings for the quarter compared to last year have been affected by
several major items.
The National Post EBITDA loss for the second quarter of 2000 was $10.6
million, a $6.9 million improvement over the EBITDA loss of $17.5 million
in the second quarter of 1999, reflecting a 39% increase in revenue
year-over-year.
Unusual items in the second quarter 2000 include gains on asset
sales, additional start-up costs related to the new printing facility in
Chicago, severance costs in Canada and equity loss at Interactive Investor.
Unusual items in the second quarter of 1999 consisted primarily of a gain on
sales of community newspapers by Hollinger International Inc. and an accounting
gain on the issue of limited partnership units offset by the write off of
finance costs related to the early retirement of debt and acquisition costs.
Interest expense for the quarter rose over 1999 as a result of
increased interest rates and increased debt levels.
Second quarter revenue from internet operations grew from $1.6
million in 1999 to $6.1 million in 2000 and internet related EBITDA losses grew
from $2.8 million to $13.5 million over the same time frame, reflecting the
expanding activity of these 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
July 27, 2000.
For more information please call:
J. A. Boultbee
Executive Vice-President
and Chief Financial Officer
Hollinger Inc.
(416) 363-8721
