Postmedia Network Canada Corp.’s Executive Chairman Paul Godfrey said Wednesday that the company must make “tough decisions” after it reported a $15.5 million net loss in its third quarter ended May 31.
Mr. Godfrey said digital services aren’t growing fast enough to offset declines in print revenue.
The Toronto-based media company, which owns the National Post newspaper, as well as other print and digital publications, reported that its overall revenue fell to $171 million, down 10% from a year earlier, reflecting an industry-wide shift in readership and advertising to digital forms of content through social media and the internet.
Print advertising revenue accounted for most of the third quarter decline, dropping by $14.8 million or 16%, while print circulation revenue fell by $4.5 million or nearly 8%. Digital revenue rose about $2 million to $29.9 million.
Mr. Godfrey didn't specify what further decisions are ahead but the company had set this week as a deadline for employees to decide on a voluntary departure program, as part of a plan to cut total salary by 10% by the end of August.
Postmedia has been reducing the number of print publications in stages and cutting staff. Most recently, the company announced it would stop printing daily newspapers in Portage La Prairie, Manitoba; Kirkland Lake, Ontario; and Pembroke, Ontario. But it will continue to have a digital presence in the three communities. It also announced the closures of two community newspapers in Alberta and four community newspapers in Ontario.
