Postmedia’s Q2 revenue declines 10.8%

Increases in digital revenues were, once again, not enough to offset continued declines in print.
Paul Godfrey 2018

Postmedia’s revenue for the second quarter decreased 10.8% compared to the same period last year, according to fiscal reports released Wednesday.

Overall revenues of $157.6 million were reported for the period ending February 28, 2018, compared to $176.7 million the previous year.

Declines in print revenue were cited as the primary cause, with a 18.8% ($16.3 million) decline in print ad revenue and a 7.9% (4.6 million) decline in print circulation revenue.

There was, however, see an increase in digital revenues by 10.1% ($2.4 million) and digital ad revenue growth was up by 12% in Q2.

Net loss in the quarter was down to $1.3 million, a significant drop from $28.5 million in the same period last year, said in the report to be due to an increase in operating income and a decrease in restructuring expense.

Net earnings in Q2 were down to $4.5 million for the year-to-date period ending February 28, compared to a net loss of $8.7 million in the same period in 2017.

During an earnings call, CEO Paul Godfrey (pictured) briefly spoke of the tough task of taking the legacy business into the digital world.

“I didn’t take this job to attend a funeral at some point in time,” he said. “I took this job to try to help this industry, and we are working very hard to make the company succeed along with the entire industry.”

“We are continuing to pursue every avenue we can, and we think we’re making some progress on the digital side of it,” he added, concluding that although is it not an easy task, “it’s a task we think we’ll eventually succeed at.”