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The company said digital sales in North America slowed during the quarter but it saw a positive stabilization in print sales. Harlequin’s EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $11.5-million, down 40% from $19.1-million this time last year.

On the media side, Mr. Holland noted, “The effects of a declining print ad market were only partially offset by a considerable effort on costs.”

Print ad revenue at the Toronto Star was down 13.7% at the Toronto Star although the company said local digital advertising continues to be a bright spot.

Torstar management said that the rollout of a digital paywall at the newspaper’s website is still planned for sometime “this summer.”

Postmedia Network Canada Corp. – which owns the National Post along with nine other English dailies – implemented a paywall across all its newspaper websites in May while the Globe and Mail and Quebecor Inc.-owned Sun Media Corp. publications began charging for online content last year.

John Cruickshank, publisher of the Toronto Star and president of Star Media Group, said during the call that while he has high expectations for the potential performance of the paywall, he does not project it will be a major contributor to revenues this year as the company spends to promote and implement the initiative.

Torstar’s media business, which includes the Toronto Star and Metro as well as the Metroland chain of community newspapers, posted EBITDA of $37.5-million, down 13.4% from $43.3-million in the second quarter of 2012.