Postmedia reports higher loss

Postmedia Network Canada Corp. said it will take further steps to trim its operating expenses as the company reported lower revenues and more losses. Postmedia, which owns the National Post, the Ottawa Citizen, the Calgary Herald and other Canadian daily newspapers, on Tuesday reported a $12.1 million net loss in the three-month period ending May 31, up from a $2.7 million loss in the same period a year earlier. The company reported reduced quarterly operating income of $4.1 million, down from $23 million in the same period a year earlier, which it said was a result of “an increase in restructuring expenses and a decline in revenue, partially offset by lower operating costs.” Postmedia said its year-over-year third-quarter revenues fell 6.9 per cent to $212 million, from $227.6 million in the prior year. “The decrease in the current quarter was primarily due to a decrease in print advertising revenue of $14.5 million (or 10.0%) with the largest declines occurring in the national category,” the company said in a release. “Print circulation revenue decreased $2.8 million (or 5.1%) relative to the same period in the prior year. Digital revenue increased $1.5 million (or 6.8%) relative to the same period in the prior year.” The company said it will seek up to $40 million in operating cost savings through “initial” savings initiatives that will take place this year. “These savings represent the initial phase of a three year business transformation program that, in total, is targeted to result in operating cost savings of 15% to 20%,” the company said. Postmedia announced in May the closure of its in-house news wire services and a round of related layoffs. It has also said it will start charging users for access to premium online content.

Postmedia reports higher loss

Brief | July 13, 2012

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