Postmedia reports narrower third-quarter loss as parcel revenue grows

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Postmedia Network Canada Corp. posted a narrower net loss for its fiscal third quarter as its parcel business continued to grow on higher volumes.

The company, which owns media properties across Canada including the National Post and Financial Post, said it recorded a net loss of $15.9 million for the three-month period ended May 31, down from a loss of $24.8 million in the same period a year ago. Lower restructuring expenses contributed to the improved figure.

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Overall revenue at Postmedia declined to $100.8 million, down 9.3 per cent from the same period a year ago. Advertising and circulation revenues declined by 12 per cent and 9.4 per cent, respectively, while parcel revenue rose by 10.8 per cent to $11.9 million.

In a release announcing the results, Postmedia chief executive Andrew MacLeod said Ottawa’s Journalism Tax Credit and bill C–18 were providing crucial support to the industry and lauded the Ontario government for a recent commitment to spend a quarter of advertising dollars with media platforms based in the province. But, he said, the sector is still facing challenges.

“With over 85 per cent of all digital advertising being allocated to foreign platforms, the entire Canadian media sector remains significantly distressed,” MacLeod said.

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