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CityMedia revenues were up $0.9 million in the fourth quarter excluding the $1.5 million impact of the accounting change for circulation revenues and $1.3 million from acquisitions. Advertising revenue was flat in the fourth quarter at The Hamilton Spectator as a 4.5% linage decline was offset by a higher effective line rate. However, the fourth quarter linage decrease was the smallest year-over-year decline during 2004. The Record had a small increase in advertising revenue as a strong effective line rate slightly offset a 7.8% decline in linage. CityMedia costs were relatively flat year over year in the fourth quarter. 

TTN’s revenues were flat in the fourth quarter year over year. Operating losses were $2.7 million in the fourth quarter of 2004, up $1.2 million from $1.5 million in the fourth quarter of 2003. Depreciation expense was $0.3 million higher in the quarter as more systems were installed and operating. 

## BOOK PUBLISHING 

The details of the changes in reported revenues and operating profits for the fourth quarter of 2004 are as follows (in $000’s): 

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Book Publishing revenues were down $9.5 million in the fourth quarter of 2004 excluding the impact of foreign exchange. North America Retail was down $3.3 million, North America Direct-To-Consumer was down $2.2 million and Overseas was down $2.4 million. In the fourth quarter of 2003, the former Creativity division had revenues of $1.6 million. 

Book Publishing operating profits were down $4.1 million in the fourth quarter of 2004 excluding the impact of foreign exchange. North America Retail was down $3.6 million, North America Direct-To-Consumer was up $0.9 million and Overseas was down $1.8 million. In the fourth quarter of 2003, the former Creativity division had operating losses of $0.4 million. 

North America Retail continued to face challenges in the U.S. mass-market paperback segment. In the North America Direct-To-Consumer division, favourable payment rates and a June 2004 price increase offset the impact of lower volumes and provided an increase in operating profits. In Overseas, Japan and Germany reported lower net sales in the core retail series programs in the fourth quarter. The U.K. had lower net sales for both its series and single title programs. 

