Postmedia released disappointing second-quarter financials on Thursday. Revenue for the quarter was down 13% to $97.3 million from $111.8 million during the same period last year. Although partially offset by a $2.4 million increase in its parcel revenue, the overall decrease was the result of a 20.8% drop in advertising revenue ($11.3 million), and a $4.1 million decrease in circulation revenue.

“Despite anticipated positive impacts from revisions to the Journalism Tax Credit and implementation of the Online News Act, the media industry in Canada continues to face major challenges as demonstrated by recent announcements of the creditor protection filings of each of Black Press and Saltwire,” said Andrew MacLeod, Postmedia president and CEO.

Operating expenses were down by $10.2 million, or 9.1%, for the quarter ended February 29, 2024, relative to the same period in the prior year. The decrease relates to dips in compensation, newsprint, production and other operating expenses, partially offset by an increase in distribution expense.

“We remain focused on transforming our business and delivering a sustainable news media model for the future and appreciate the continued support of the provincial and federal governments, which are critical to ensuring a robust local media infrastructure,” Macleod said in his statement.