Postmedia loses $50m in fourth quarter
By The Canadian Press
Postmedia Network Canada Corp. says its losses deepened in the fourth quarter as revenues dropped 13 per cent, weighed down by weaker print and digital advertising sales.
The Toronto-based media company, owner of several newspapers and websites including the National Post, says it had a $49.8 million net loss, or $1.24 per share in the most recent quarter ended Aug. 31.
That compared to a revised net loss of $47.9 million or $1.19 in the same period a year ago.
Revenue slipped to $146.8 million from $169.3 million, mainly on weaker print advertising sales which fell 21 per cent to $74.2 million. Digital revenue dropped five per cent to $20.2 million while print ciculation revenue slipped to $48 million from $49.4 million.
Postmedia has been reworking its operations under a three-year turnaround plan.
Postmedia announced earlier this month that it is buying Sun Media’s 175 English-language newspapers, free dailies and online sites for $316 million from Quebecor Media Inc.
The regulatory review process is expected to take four to six months, but the boards of both corporations have approved the deal., the companies said at the time.
Postmedia’s rationale for the deal included “strong value to advertisers for local, regional and national reach” and a “four-platform strategy driving conversation from legacy printing into a content engine offering customized bundles for readers and advertisers.”
This article was originally published by The Canadian Press