Postmedia posts $10.3-million loss; print advertising down 20%
Circulation revenue was also down as digital revenue inched up.
By Ronan O’Beirne, Associate Editor
Postmedia posted a $10.3-million loss in its first quarter, as the company saw its print advertising fall 20 per cent year-over-year.
Print circulation revenue saw a less dramatic decline, from $49.6 million to $47.4 million, “as a result of declines in circulation volumes partially offset by price increases,” the company said in a statement.
The company’s digital revenues increased slightly, from $23.5 million to $24.2 million.[node:related]
Postmedia said it also reduced expenses in most areas—including newsprint and compensation—but that production costs went up because of production at the Montreal Gazette and Calgary Herald being outsourced.
In the statement, president and CEO Paul Godfrey said management’s focus is now on “working through the regulatory approval process with the Competition Bureau for the Sun Media acquisition.” In a conference call with investors, Godfrey added that approval could come within the next three months.
Godfrey also said that a potential deal to sell the Calgary Herald building did not pan out, but added, “We have other people knocking on our door all the time.”