Postmedia swings to profit, but print ad revenue takes hit

Canada’s largest newspaper chain, Postmedia Network Canada Corp., posted a profit in its most recent quarter, buoyed by digital efforts, but revenue fell as print advertising and circulation continued their industry-wide plunge.
The company’s profit was $13-million for the quarter ending May 31 – versus a $23.7-million loss in the same quarter last year – as digital revenue grew, interest payments fell, employee benefit plan changes came into effect, and other cost-savings initiatives were realized.
But it reported $194-million in revenue, down 11 per cent from $218-million. Print was the culprit here: advertising revenue fell $22-million, or 19 per cent, while circulation revenue dropped $5.5-million, or 9 per cent.
A 23-per-cent boost to digital ad revenue helped Postmedia’s digital revenue increase by $3.9-million, or 14 per cent.
“This is our second quarter of steady growth in digital advertising revenue,” chief executive officer Paul Godfrey said in a statement. “It is a strong endorsement of the hard work done by teams across Postmedia to accelerate our transformation and focus on maximizing new revenue opportunities.”
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