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Postmedia Network Canada Corp., which oversees the country’s biggest newspaper chain, said its operating income before certain items ticked up in the third quarter, but not enough to prevent the company from posting a wider net loss.
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For the three months ended May 31, the company reported a $9.4-million decrease in revenue to $111.2 million from $120.6 million in the same period in the prior year.
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It said this decline was primarily due to a $9.9-million decrease in advertising revenue and $6.7-million decrease in circulation revenue, partially offset by increases in parcel revenue of $4.6 million and other revenue of $2.5 million.
Excluding the impact of its acquisition of Brunswick News Inc., which closed on March 25, revenue would have been $96.2 million, a decrease of $13 million from the prior year.
Operating income in the third quarter was $4.5 million, an increase of $1.9 million relative to the prior year.
The increase, measured before taking depreciation, amortization, impairment and restructuring into account, was attributed to a 9.6 per cent decline in total operating expenses.
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The company, which publishes dozens of newspapers including the Financial Post, the National Post and the Vancouver Sun, nevertheless posted a net loss of $24.8 million, larger than the $16.8-million shortfall from the same quarter in 2022. It said the loss was primarily attributable to increases in restructuring and interest expenses and foreign exchange losses.
“A challenging economic landscape continues to affect all industries and requires a continued focus on aggressive transformation,” chief executive Andrew MacLeod said in a press release.
The results come days after Postmedia said talks of a merger transaction with Nordstar Capital LP, owner of the Metroland Media Group and the Toronto Star, had concluded without the sides reaching a deal.
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Both companies said they were unable to come to agreement on the terms of the merger.
