Postmedia reports $11.1M loss in quarter

Postmedia Network Canada Corp. posted a loss Thursday of $11.1 million for the second quarter of 2012 ending Feb. 29. The company reported a loss of $12.5 million for the same period a year earlier. Revenue in the quarter totalled $198.6 million, a decline of $16.4 million, or 7.6 per cent, over the same period a year earlier. That decrease was primarily due to a drop in print advertising revenue of $14.5 million, mostly in national advertising, the company said. “Along with our industry peers, we continue to see pressure on advertising revenue. Both economic and structural factors are impacting our traditional revenue streams,” Paul Godfrey, president and CEO of Postmedia, said in a statement. “Our ongoing focus is on transforming our cost structure and reducing debt. As our audiences continue to grow in print and online, putting our energies into solutions that get us closer to our audiences and leveraging those relationships for the benefit of our advertisers is where we see evolving revenue streams,” he said. Print circulation revenue decreased by $2.3 million, or 4.3 per cent, during the quarter, and digital revenue rose $100,000, or 0.5 per cent, the company said. Postmedia owns the print assets of the former Canwest Global Communications Corp., including the National Post, regional newspapers, and the Postmedia wire service. Postmedia said last October it reached a deal to sell the Times Colonist to Vancouver company Glacier Media Inc. for $86.5 million. Due largely to the sale to Glacier, Postmedia's profits for the six-month period ending Feb. 29 were $17.3 million compared to a loss of $6.5 million in the same period a year earlier. Postmedia said its debt, as of Feb. 29, was $247.5 million US under its term loan credit facility and $268.6 million US in notes.

Postmedia reports $11.1M loss in quarter

Briefs | 04/12/2012 9:18 pm EDT

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