TORONTO, July 11, 2024--(BUSINESS WIRE)--Postmedia Network Canada Corp. ("Postmedia" or the "Company") today released financial information for the three and nine months ended May 31, 2024.

"With over 85% of all digital advertising being allocated to foreign platforms, the entire Canadian media sector remains significantly distressed. Yet Canadians’ appetite for trusted journalism has never been higher," said Andrew MacLeod, President and CEO. "Initiatives like the Journalism Tax Credit and bill C18 implemented by the Federal government are providing critical support. Ultimately our industry’s future will be determined by Canadian media companies’ ability to capture a greater share of the market and so we applaud the Ontario government for their commitment to spending 25% of their advertising dollars on Ontarian media platforms."

Third Quarter Operating Results

Revenue for the quarter was $100.8 million as compared to $111.2 million in the same period in the prior year, representing a decrease of $10.4 million (9.3%). The revenue decrease was primarily due to decreases in advertising revenue of $6.5 million (12.0%) circulation revenue of $3.4 million (9.4%) and other revenue of $1.6 million (16.6%), partially offset by increases in parcel revenue of $1.2 million (10.8%).

Total operating expenses excluding depreciation, amortization and restructuring decreased $7.5 million, or 7.0%, for the quarter ended May 31, 2024, relative to the same period in the prior year. The decrease relates to decreases in compensation, newsprint, production and other operating expenses, partially offset by an increase in distribution expense.

Operating income before depreciation, amortization and restructuring in the quarter was $1.5 million, a decrease of $2.9 million relative to the same period in the prior year. The decrease in operating income before depreciation, amortization and restructuring is due to a decrease in total revenue, partially offset by the decrease in operating expenses excluding depreciation, amortization and restructuring.

Net loss in the quarter ended May 31, 2024 was $15.9 million, as compared to a net loss of $24.8 million in the same period in the prior year. The decrease in net loss was primarily the result of decreases in restructuring expenses, partially offset by a decrease in operating income before depreciation, amortization and restructuring and an increase in foreign currency exchange losses.

Year-to-Date Operating Results

Revenue for the nine months ended May 31, 2024 was $302.8 million as compared to $347.2 million in the same period in the prior year, a decrease of $44.4 million or 12.8%. The revenue decrease was primarily due to decreases in advertising revenue of $32.3 million (18.5%) and circulation revenue of $14.6 million (12.9%), partially offset by increases in parcel revenue of $7.2 million (22.6%).

Total operating expenses excluding depreciation, amortization and restructuring decreased $38.3 million or 11.3% for the nine months ended May 31, 2024, relative to the same period in the prior year. The decrease relates to decreases in compensation, newsprint, production and other operating expenses, partially offset by an increase in distribution expense.

Operating income before depreciation, amortization and restructuring of $2.6 million in the nine months ended May 31, 2024 represents a decrease of $6.2 million relative to the same period in the prior year. The decrease is due to the decrease in total revenue, partially offset by the decrease in operating expenses excluding depreciation, amortization and restructuring.

Net loss in the nine months ended May 31, 2024 was $46.6 million, as compared to a net loss of $61.5 million in the same period in the prior year. The decrease in net loss was primarily the result of decreases in depreciation, restructuring expenses and foreign exchange losses, partially offset by a decrease in operating income before depreciation, amortization and restructuring, an increase in interest expense, and a decrease in gain on disposal of property, plant and equipment, assets held-for-sale and other assets.

Additional Information

Additional information, including financial statements and management’s discussion and analysis can be found on the Company’s website at www.postmedia.com or on SEDAR+ at www.sedarplus.ca.

Note: All dollar amounts are expressed in Canadian dollars unless otherwise specified.

About Postmedia Network Canada Corp.

Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that owns Postmedia Network Inc., a Canadian newsmedia company representing more than 130 brands across multiple print, online, and mobile platforms. Award-winning journalists and innovative product development teams bring engaging content to millions of people every week whenever and wherever they want it. This exceptional content, reach and scope offers advertisers and marketers compelling solutions to effectively reach target audiences. Our expertise in home delivery and expanding distribution network powers Postmedia Parcel Services. For more information, visit www.postmedia.com, www.postmediasolutions.com and www.postmediaparcelservices.com.

Forward-Looking Information

This news release may include information that is "forward-looking information" under applicable Canadian securities laws. The Company has tried, where possible, to identify such information and statements by using words such as "believe," "expect," "intend," "estimate," "anticipate," "may," "will," "could," "would," "should" and similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance. Forward-looking statements in this news release include statements with respect the implementation and results of the Company’s transformation initiatives, continued benefits of historical results into future periods, the realization of anticipated cost savings, the identification and undertaking of ongoing cost savings initiatives. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others: competition from digital and other forms of media; the effect of economic conditions on advertising revenue; the ability of the Company to build out its digital media and online businesses; the failure to maintain current print and online newspaper readership and circulation levels; the realization of anticipated cost savings; possible damage to the reputation of the Company’s brands or trademarks; possible labour disruptions; possible environmental liabilities, litigation and pension plan obligations; fluctuations in foreign exchange rates and the prices of newsprint and other commodities.

For a complete list of our risk factors please refer to the section entitled "Risk Factors" contained in our annual management’s discussion and analysis for the years ended August 31, 2023 and 2022. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates, may differ materially from any such information and statements in this press release. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements.

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Contacts

For more information:

Media Contact
Communications
inquiries@postmedia.com

Investor Contact
John Bode
Executive Vice President, Chief Financial Officer and Chief Transformation Officer
investors@postmedia.com