Canadian newspaper giant Postmedia says it will “continue to identify and undertake ongoing cost reduction initiatives in an effort to address revenue declination in the legacy print business” after the company reported on Thursday net losses for both its fourth quarter and year-end for fiscal 2018.
Postmedia said revenue for the quarter was $158.7 million, down 10.3 per cent from the $176.8 million in fourth quarter 2017.
“The revenue decline was primarily due to decreases in print advertising revenue of $14.1 million or 17.0 per cent and print circulation revenue of $5.7 million or 9.6 per cent. Digital revenue increased by $2.5 million or 9.7 per cent in the quarter with digital advertising revenue up 13.2 per cent,” said the company.
Net loss in the quarter ended Aug. 31 was $22.8 million as compared to net earnings of $40.3 million in the same period in the prior year, it said.
Postmedia said that revenue for the year ended Aug. 31 was $676.3 million compared to $754.3 million the previous year, a 10.3 per cent decline.
“The revenue decline was primarily due to decreases in print advertising revenue of $65.0 million or 17.4 per cent and print circulation revenue of $18.6 million or 7.8 per cent. Digital revenue increased by $11.0 million or 10.4 per cent year to date with digital advertising revenue up 13.1 per cent,” it explained.
Net loss for the year was $33.9 million, compared to net earnings of $44.8 million in 2017.
Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald, including 12 years as a senior business writer.