Postmedia reports Q1 loss as drop in print-related revenue offsets digital gain

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TORONTO — Postmedia Network Canada Corp. had a $3-million loss in its first quarter as overall revenue declined 8.5 per cent from a year earlier due to lower print advertising and circulation revenue.

The owner of Canada’s largest newspaper group, including the National Post, says overall revenue was $156.7 million for the three months ended Nov. 30, down from $171.3 million a year earlier.

Digital advertising revenue was up 11.1 per cent but overall digital revenue rose only $2.8 million to $35.6 million, while print advertising revenue dropped $12.9 million to $64.14 million and print circulation fell $3.1 million to $50.3 million.

Postmedia says the quarter’s net loss amounted to three cents per share, compared with a two-cent per share loss a year earlier.

Most expense items for the quarter were down or flat year-over-year, but restructuring-related costs were substantially higher at $8.6 million – up from $2.7 million a year earlier.

Operating income before depreciation, amortizing and restructuring expenses was down $300,000, helped by a recovery of $2.4 million related to journalism tax credits.

This report by The Canadian Press was first published Jan. 9, 2020.

Companies in this story: (TSX:PNC.A, TSX:PNC.B)

The Canadian Press