Postmedia earnings were once again up in Q1, but ongoing struggles in advertising and circulation mean the company remains committed to cost-cutting and transformation plans.

In the quarter ending Nov. 30, 2022, revenue at Postmedia increased by 5.2%. However, that was largely attributed to increases in its parcel services – ad revenue dropped by 5.9%, while circulation revenue dropped 5.4%.

Also, excluding the company’s acquisition of Brunswick News, revenue dropped by 8.1%, with ad declines of 13.3% and circulation revenue falling by 11%. The company’s net loss in the quarter was $15.9 million, up from $4.4 million year-over-year, primarily due to decreases in operating income.

Andrew MacLeod, president and CEO of Postmedia, said that company continues to face headwinds due to the uncertain economic landscape, which is presenting particular troubles for companies in the media industry.

To deal with these, MacLeod said the 2023 fiscal year will see Postmedia focus on “key revenue areas,” such as digital subscriptions, digital advertising and parcel services, areas he says the company is already making progress on. Further initiatives for the year ahead include streamlining resources, product mix rationalization, outsourcing and real estate divesture.

Operating expenses at Postmedia grew by 12.4% year-over-year, though decreased by 3.8% when excluding costs related to the Brunswick News acquisition. The company said compensation, distribution and production costs were all down in the quarter, though the cost of newsprint and other operating expenses has gone up slightly.

At the beginning of Q1, Postmedia stopped printing Monday editions for nine of its major daily newspapers. Also, compensation for Postmedia’s five highest paid executives was $3.5 million last year, the lowest it has been since 2014.

Cost reduction initiatives conducted in the quarter, the company says, are expected to generate $19 million in net annualized cost savings.