The Canadian Press - ONLINE EDITION

Postmedia says automotive advertising major reason for drop in Q3 revenue

  • Print

TORONTO - Postmedia Network Canada Corp. (TSX:PNC.B), which operates one of Canada's largest chains of newspapers, reported Thursday it lost $20.6 million in its latest quarter as revenue fell 11 per cent due to lower print advertising sales.

"This occurred across national, retail and classified categories, with the larger declines across national and classified," Postmedia chief financial officer Doug Lamb said in a conference call.

"We continue to experience advertising weakness in the early weeks of the fourth quarter."

The loss amounted to 51 cents per share for the quarter ended May 31 compared with a loss of $103.3 million or $2.57 per share a year ago when the company took a $93.9-million one-time non-cash charge.

Postmedia's total revenue was $170.99 million in the quarter, down from $191.78 million a year earlier.

Lamb said the biggest challenge was in automotive advertising, which was responsible for 41 per cent of the year-over-year decline in print advertising revenue experienced in the third quarter.

Print advertising at the company's newspapers, which include the National Post and dailies in Montreal, Ottawa, Calgary, Edmonton and Vancouver, fell by nearly $18.7 million to $94.7 million, a 16 per cent decline from $113.4 million in the third quarter of its 2013 financial year.

Print circulation revenue also declined by about $400,000 to just over $49 million while revenue from digital products decline by about $1 million to $23.07 million from $24.09 million a year earlier.

Digital products are seen as the future for Postmedia, which have seen readers increasingly turn to social media, websites and other electronic media for news and entertainment.

Postmedia launched a redesigned version of the Ottawa Citizen this year with a new look for the newspaper and website as well as new apps for smartphones and tablets.

The company expects to redesign most of its other newspapers, except the National Post and Vancouver Province, by next summer.

Postmedia, which was created in July 2010 under a court-supervised restructuring of the Canwest broadcasting and newspaper business, is about mid-way through a three-year turnaround plan that began in 2012.

President and chief executive Paul Godfrey said Thursday that "we had no idea" four years ago how big a challenge was ahead for Postmedia.

As of May 31, the company had $48.6 million cash and was in the process of selling some of its real estate and further reducing operating costs by an estimated $8 million per year.

On Wednesday, it arranged a new secured asset-backed line of credit for up to $20 million.

Godfrey said Postmedia is focused on "transforming legacy costs and re-imaging what our products will look like in the future."

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Sneak peek: MTS Centre’s renovations for 2014/15 season

View more like this

Photo Store Gallery

  • PHIL HOSSACK / WINNIPEG FREE PRESS 070619 LIGHTNING ILLUMINATES AN ABANDONED GRAIN ELEVATOR IN THE VILLAGE OF SANFORD ABOUT 10PM TUESDAY NIGHT AS A LINE OF THUNDERSTORMS PASSED NEAR WINNIPEG JUST TO THE NORTH OF THIS  SITE.
  • Water lilys are reflected in the pond at the Leo Mol Sculpture Garden Tuesday afternoon. Standup photo. Sept 11,  2012 (Ruth Bonneville/Winnipeg Free Press)

View More Gallery Photos

Poll

Do you support Canada's involvement in the fight against Islamic State?

View Results

View Related Story

Ads by Google