While Postmedia reported an 8% decrease in Q4 revenue ($93.2 million compared to last year’s $101.3 million) and an 11.7% decrease in revenue for the year, there are still reasons to remain optimistic.

For one, Postmedia’s operating income before depreciation, amortization and restructuring in the quarter was $12.2 million, an increase of $10.3 million relative to the same period in the prior year. The increase is due to a decrease in operating expenses (excluding depreciation, amortization and restructuring), although those gains were partially offset by a decrease in total revenue.

“While we continue to operate in a challenging advertising marketplace dominated by large, foreign media platforms, Postmedia achieved some important milestones during the quarter that give us optimism around the future of Canadian news media. It is clear from our digital audience that Canadians look to us to provide accurate and timely local, provincial, and national news,” said Andrew MacLeod, president and CEO.

MacLeod says the Ontario government’s recent policy change to support local media in Ontario and the successful completion of the C-18 negotiations “gave us confidence to both step into a challenging situation in Atlantic Canada and save local news brands that have operated in those provinces for over 150 years and to invest millions of dollars in a new digital platform with improved capabilities,” MacLeod adds.

In August, Postmedia completed the purchase of Saltwire Network Inc, which owns daily newspapers in Nova Scotia, Prince Edward Island and Newfoundland, including the Cape Breton Post, the Guardian and the Telegram, as well as weekly papers and several digital publications.’

According to Postmedia, the company intends to continue operations of certain
Saltwire publications, leveraging existing Postmedia newsmedia back-office resources and operational infrastructure to ensure there continues to be reliable and high-quality local news provided to the affected communities. The acquisition included Saltwire’s daily and weekly papers, and parcel delivery business. The purchase price consisted of $1 million of cash consideration and $3.1 million of estimated contingent consideration.

At the time, MacLeod said, “We urge all stakeholders, including employees and community leaders, to support our efforts. The future of local journalism in the Atlantic provinces depends on everyone’s cooperation in a successful restructuring.”