Business and Finance

Indigo Books & Music Inc. has declared its first dividend, as revenues increased four per cent in the fourth quarter, but profit weakened.

The company said Friday that it would initiate a cash dividend of 10 cents per share on its common shares, payable to shareholders of record as of June 15.

The decision came as the company posted $1.9 million in profit for the period ended March 28, a slide from $3.1 million in the same period a year earlier.

Revenues rose to $214.5 million from $206.2 million.

Pre-tax earnings for the quarter were $2.3 million, an increase of 21.6 per cent, or $400,000, from the same quarter last year.

Indigo said the current quarter's results include tax expenses of $400,000, while last year's numbers included a $1 individual health insurance.2 million tax recovery.

"We are very satisfied with both our top line growth and operating profits, especially in this challenging economic climate," said chief executive Heather Reisman in a release.

"We are also proud that our strong balance sheet has allowed us to initiate a quarterly dividend while continuing to invest in our future growth."

For the year, profit tumbled to $30.7 million from $52.8 million. Revenues increased to $940.4 million from $922.9 million.

Indigo shares increased five per cent, or 59 cents, to $12.60 on the Toronto Stock Exchange.

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