David Holland

TORONTO -- Torstar Corp., owner of the Toronto Star and other newspapers, is selling the Harlequin book publishing company for $455 million to global media company News Corp. and it will be run as a division of HarperCollins Publishers.

Torstar (TSX:TS.B) says the sale will strengthen its financial position and a portion of the net proceeds will be used for debt reduction.

Harlequin, known for its romance books, has been part of Torstar for 39 years.

Torstar Corp., owner of the Toronto Star and other newspapers and the Harlequin book publishing company, reports that its fourth-quarter profit was stable despite a decline in revenue

The Toronto-based media company had $20.6 million of net income in the three months ended Dec. 31, little changed from $21.1 million a year earlier. Net income per share was unchanged at 26 cents; adjusted earnings fell one cent to 48 cents per share.

Declining print revenue at its newspapers and fewer readers for its Harlequin novels pushed profit at Torstar Corp. 44 per cent lower in its last quarter. "It was a difficult quarter as decline in results were experienced in both the book publishing and media divisions," chief executive officer David Holland said in a statement. "Management of costs remains a priority and helped to mitigate the impact of the revenue decline experienced in the quarter."