Postmedia posts $11.8 million Q1 loss amid restructuring, lower revenue

The company that owns the National Post and other big-city Canadian newspapers has reported an $11.8-million net loss in the first quarter of fiscal 2014. Postmedia Network Canada Corp. said the loss was primarily due to a $15.3-million increase in restructuring expenses related to the company’s outsourcing of printing operations. A year earlier, Postmedia had […]

The company that owns the National Post and other big-city Canadian newspapers has reported an $11.8-million net loss in the first quarter of fiscal 2014.

Postmedia Network Canada Corp. said the loss was primarily due to a $15.3-million increase in restructuring expenses related to the company’s outsourcing of printing operations.

A year earlier, Postmedia had $6.7 million of net income in the comparable quarter, which covers September, October and November.

Postmedia’s revenue for the quarter ended Nov. 30 was down 8% from a year earlier, falling to $194 million from about $212 million in the first quarter of fiscal 2013.

The main cause of the lower revenue was reduced print advertising sales while digital revenue fell by $1.3 million or 5%.

Like most of the newspaper industry, Postmedia has been grappling with a years-long trend in which readers and advertisers turn away from print publications to digital media including web sites.

Postmedia’s loss for the three months ended Nov. 30 amounted to 29 cents per share, compared with 16 cents per share of net income in the first quarter of fiscal 2013.

However, operating expenses excluding depreciation, amortization and restructuring items fell by $14.7 or 9% from a year before.

In November, the company outsourced the production of the Calgary Herald and said it would also outsourcing contracts for the production of both the Vancouver Sun and the Province.

“We continue to face significant revenue challenges as a result of a rapidly changing advertising market,” CEO Paul Godfrey said in a statement.

“In spite of these challenges, however, we are very pleased with the progress we have made in stabilizing circulation revenue, deepening insights into our audiences across multiple platforms, and transforming our cost structure to match the realities of the business.”

Media Articles

Casale Media rebrands,
Andrew Casale takes over as CEO

Casale Media will be known as Index Exchange to emphasize focus on technology

Canada’s Hottest Ads:
Year-end cheer dominates

... and that beer fridge turns up everywhere (with Denise Rossetto and Todd Mackie)

Mediaocean, Juice Mobile strike North American partnership

Automated guaranteed mobile platform is integrated into Prisma planning tools

Travel Alberta uses Tumblr to inspire “winterlust”

Sponsored posts and targeted online ads tell travelers "Remember to breathe"

Pink Triangle Press shuttering print editions of Xtra

Move follows strategic review of operations

Newspapers still key in automotive path to purchase

Three quarters of recent car buyers used papers during buying process, study says

L’OrĂ©al Paris invites vloggers to brush up on their makeup skills

Canadian component of 11-country initiative includes Elle Canada, YouTube, eTalk