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

Giving marketers the inside edge

SPONSORED: In-app video from Flurry and its marketplace now available to Yahoo advertisers

Yahoo Canada’s Year in Review

SPONSORED: Tapping in to what matters most to users

The search for social marketing’s J.D. Power

Aimia CMO John Boynton says social marketing needs metrics that look deeper

Canada’s Hottest Ads: A very foodie November

...with a light dusting of holiday cheer

Toronto Star hires Rethink

Agency to focus on promoting the paper's print edition and tablet news products

Former Quebecor CEO to head St-Hubert restaurant chain

Robert Depatie starts new role in February

Why there needs to be a victor in the mobile wallet wars

Retail Futurist Doug Stephens says convenience will reach a tipping point