Canadian media giant Postmedia ended up losing $6.3 million for its fiscal year ending August 31.
The company said Thursday that the net loss compared to a net loss $33.9 million in the same period in the prior year.
“The change was primarily the result of decreases in depreciation and amortization expense, decreases in restructuring and other items expense which includes a curtailment gain of $9.7 related to the Company’s employee benefit plans, an increase in gain on disposal of property and equipment and assets held-for-sale and a decrease in foreign currency exchange losses, partially offset by a gain on disposal of operations in Fiscal 2018,” it said in a news release.
Postmedia, the owners of the major newspapers across the couuntry including Sun Media, said revenue for the year was $619.6 million as compared to $676.3 million in the prior year, representing a decrease of $56.7 million or 8.4 per cent. The revenue decline was primarily due to decreases in print advertising revenue of $49.1 million or 15.9 per cent and decreases in print circulation revenue of $13.7 million or 6.2 per cent. Digital revenue increased by $8.6 million or 7.4 per cent year to date with digital advertising revenue up 9.8 per cent, it explained.
“During the three months ended August 31, 2019, the Company implemented initiatives – including compensation expense reductions, real estate rationalization, production efficiencies and other transformation programs – which are expected to result in approximately $3 million of net annualized cost savings,” said Postmedia.
“The Company intends to continue to identify and undertake ongoing cost reduction initiatives in an effort to address revenue declination in the legacy print business.”
In the fourth quarter, net earnings were $7.9 million compared to a loss of $22.9 million in the same period last year. Revenue for the quarter was $145.6 million compared to $158.7 million in the same period in the prior year, representing a decrease of $13.1 million or 8.2 per cent. The revenue decline was primarily due to decreases in print advertising revenue of $11.3 million or 16.5 per cent and print circulation revenue of $2.8 million or 5.3 per cent. Digital revenue increased by $2.4 million or 8.2 per cent in the quarter with digital advertising revenue up 10.8 per cent, explained the company.
“Our overarching strategy – to grow digital revenue and extend the legacy runway – continues to deliver thanks to the hard work and dedication of the entire Postmedia team,” said Andrew MacLeod, President and Chief Executive Officer, Postmedia in a statement. “Today we are reporting the eleventh consecutive quarter of double digit digital advertising revenue growth and in the environment we operate on a daily basis, it is a proud accomplishment, indeed.”