MONTREAL—Transcontinental's revenues increased by 1% from $510 million to $514.7 in the second quarter of 2011, credited by the company to a number of new contracts, the most significant being an expanded partnership with The Globe and Mail.

But the company's net income for the second quarter, ended April 30, is $33 million compared to $67 million in the same quarter last year. "This decrease is mainly due to a gain related to the discontinuance of direct mail operations in the U.S. in the second quarter of 2010," reads a statement from Transcontinental.

The adjusted net income for the quarter is $40.1 million, compared to $34.1 million last year.

"I am pleased with our second quarter results, especially with the fact that we have generated organic revenue and profit growth for the fifth consecutive quarter in an industry in profound transformation," said Francois Olivier, Transcontinental's president and CEO, in the statement.