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

Cossette Media chosen as AOR for Canadian Government

Three-year contract grants media agency planning and buying duties

More journalists relying on social media: Cision

International survey shows two-thirds of journalists log in daily

Corby dedicates 50% of digital spend to programmatic

Booze brands make a big shift online with new media and platform partners

Quebecor reports Q2 profit compared with a loss a year ago

Erik Peladeau rejoining company's board of directors

Laas Turnbull joins ZoomerMedia

Media veteran named co-publisher of Zoomer, takes on content and IT teams

iPhones top list of preferred second screen devices

New Seevibes statistics shows Android losing ground to home comupters

Why sports apps are winning with fans

Usage is exploding as sports apps keep consumers deeply engaged

Mediative adds Dine.to and two auto sites to network

New sites boost network's reach with auto and foodie audiences