Cost-saving measures give Postmedia a profitable quarter

A $13 million net profit for Q3 was largely due to one-time, non-cash items such as the sale of Infomart, with revenue still down 11.1%.
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Despite an overall revenue decline of 11.1% year-over-year, Postmedia Network Canada is reporting a $13 million net profit for Q3 of 2017.

That profit, however, is due largely to cost-cutting measures and one-time, non-cash items, such as the $38.3 million sale of Infomart to Meltwater and a $22.8 million gain from changes to employee benefit plans.

In total, Postmedia’s revenue for the quarter was $194 million, down from $24.3 million in Q3 2016.

Print ad revenue totalled $93.4 million, down $22 million (19.1%) year-over year. Print circulation revenue came to $59.3 million, down $5.5 million. However, digital advertising came to $31.9 million, an increase of $3.9 million year-over-year.

Digital advertising now represents 16% of the company’s revenue, compared to 12.8% this time last year.

The company has also named its new EVP and CFO, former RIM CFO Brian Bidulka. Bidulka replaced Doug Lamb following the latter’s departure in February.

Last month, Postmedia announced that it would cease the production of its Monday print issues indefinitely, citing the move as the “logical next step” in its transition to digital operations. CEO Paul Godfrey told Media in Canada that he wouldn’t want to close the door permanently on the issues, but wanted to remain realistic.

“We don’t like pulling ourselves out of the market, especially when our competitors are still publishing on Mondays,” he said. “But I think that’s a decision we have to make based on the circumstances in the future and honestly, my crystal ball is a little hazy right now.”