Péladeau takes helm at Quebecor's Sun Media unit

Pierre Karl Péladeau, CEO of Quebecor Inc., shown in November 2007. (Ian Barrett/Canadian Press)

Media holding company Quebecor Inc. reported a strong third quarter Friday, but announced the replacement of the head of its struggling Sun Media publishing business.

Sun Media president Michael Sifton will be replaced by Quebecor CEO Pierre Karl Péladeau.

Newspaper division revenues increased, but only because of the acquisition of the Osprey Media chain of Ontario papers in 2007, the company said.

The division's operating income fell by $8 million to $52.1 million, despite a small increase at Osprey.

Sifton joined Sun Media in 2007 after Quebecor bought Osprey, where he had been CEO. He is the great-grandson of legendary newspaperman Sir Clifford Sifton, who owned the Winnipeg Free Press.

Newspapers are the company's second-largest division, after the Videotron cable TV business, which alone accounts for almost three-quarters of the $277.5 million operating profit in the quarter.

As well as broadcasting and newspapers, Quebecor owns Quebec's TVA television network, the Canoe web portal and other businesses.

Quebecor reported a third-quarter profit of $45.6 million, or 70 cents a share, reversing a loss of $35.2 million, or 55 cents a share, in 2007's third quarter. Revenue rose to $908.1 million from $834.6 million.

Quebecor Class B stock fell $1.55 to $19.10 in TSX trading.

Quebecor World revenue down, loss widens

Quebecor is the biggest shareholder in Quebecor World, the company's printing arm which went into bankruptcy protection early this year. Quebecor World said Friday that its loss for the third quarter was $63.6 million, or 35 cents a share, compared with a loss of $55.3 million, or 45 cents, a year earlier.

However, the company said it generated cash of $4.1 million, a swing from the negative cash flow reported in the 2007 quarter.

Quebecor World said it's making progress in its plan to get out of bankruptcy protection.

Revenue for the quarter was $1 billion, compared with $1.2 billion in 2007.

Quebecor said it values its investment in Quebecor World at zero and does not consolidate the printing company's results.

With files from the Canadian Press