Admitting that the company’s second quarter was ‘challenging,’ Postmedia Network president and CEO Paul Godfrey sought to look on the bright side of the company’s Q2 report Friday, citing a positive outlook for its digital-first strategy and improvements to the company’s cost and debt reduction efforts.

The mediaco posted an overall net loss of $12.3 million in its year-over-year quarterly analysis Friday, attributed to one-time restructuring charge of $13.4 million. However, the company’s print revenues declined $8.6 million over 2010’s second quarter (when it was still Canwest) to $159.6 million and its print circulation also slid, down $1.7 million to $57 million.

Overall revenues were down $11.8 million against the same quarter last year to $242.5 million.

Although digital revenues were up 8.3% over the same quarter last year to $21.5 million, Q2 represented a slight drop from Q1, in which the company posted digital revenues of $23.6 million.

Restructuring initiatives helped Postmedia save $12.7 million in operating expenses over the same time last year, the report said.

‘Our digital first strategy continues to advance throughout our operations, cost reduction efforts have been very successful and we are making consistent progress on debt reduction,’ said Godfrey in a release. ‘We remain committed to the continuing transformation of Postmedia Network, positioning it to embrace the opportunities ahead while delivering value to all of our stakeholders.’

The company is preparing to list its shares on the Toronto Stock Exchange this summer.