Postmedia Network Canada Corp. has released financial information for the three and nine months ended May 31, 2018.
Revenue for the quarter was $171.0 million as compared to $190.0 million in the same period in the prior year, a decrease of $19.0 million or 10.0%. The revenue decline was primarily due to decreases in print advertising revenue of $14.8 million or 15.8% and print circulation revenue of $4.5 million or 7.6%. Digital revenue increased by $2.0 million or 7.2% in the quarter with digital advertising revenue up 10% – the sixth consecutive quarter of double-digit revenue growth in this area. Excluding the impact of the publications acquired and sold in the Company’s first quarter, revenue for the quarter decreased 7.2% relative to the same period in the prior year including decreases in print advertising revenue of 13.6%, print circulation revenue of 4.4% and an increase in digital revenue of 11.3% which includes an increase in digital advertising revenue of 14.7%.
“We are encouraged to see our sixth straight quarter of double-digit revenue increases from our digital advertising initiatives yet we continue to see a rate of legacy revenue declination that outpaces our digital revenue growth,” said Paul Godfrey, Executive Chairman and Chief Executive Officer. “That reality means that we must continue to take the necessary steps to focus on areas where we can win and make the tough, yet decisive, decisions about where we need to make changes.”
Total operating expenses excluding depreciation, amortization, impairment and restructuring decreased $15.9 million or 9.3% for the quarter, relative to the same period in the prior year. The decrease was as a result of various cost reduction initiatives as well as a compensation expense recovery of $2.9 million related to the Company’s Ontario Interactive Digital Media Tax Credit (“OIDMTC”) claim. Excluding the recovery related to the OIDMTC claim, total operating expenses excluding depreciation, amortization, impairment and restructuring decreased $13.0 million or 7.6% for the quarter, relative to the same period in the prior year.
You can read the rest of their Q3 report here.