UPDATE 2-Torstar faces sluggish newspaper ad market, sets bleak outlook
* Says book publishing revenue to slip in second half
* After decline, expects digital revenue to recover
* 2nd-quarter profit falls 45 percent, operating revenue down 7.6 percent
* Shares fall nearly 6 percent
By Alastair Sharp
TORONTO, July 31 (Reuters) - Torstar Corp, owner of Canada's largest daily newspaper by circulation, warned that print revenue would remain under pressure in the second half of the year, after reporting its fifth straight decline in quarterly profit.
The dismal earnings report and outlook sent shares of the Toronto Star owner down nearly 6 percent in morning trading on Wednesday.
The company said earnings in its book publishing business, which includes the Harlequin series of romantic novels, had suffered because of less demand in overseas markets and would slip in the second half.
It earned C$212.8 million from the business in the second half of 2012, according to regulatory filings. Continued...