Postmedia reports a $225M Q2 loss, due in part to impairment, falling ad revenue
Excluding its Sun acquisition, Canadian newspaper chain reports print revenue fell almost 18 percent in the quarter, circulation and digital revenue also fell
The Canadian newspaper chain Postmedia Network reported Q2 earnings today, reporting a $225.1 million loss in the quarter, against a $58.2 million in the same quarter last year. The loss was made larger by a $187.0 million non-cash impairment charge.
Total revenue grew thanks to its Sun acquisition last year, but revenue of existing properties fell over 13 percent. In fact, revenue is falling all over the place: print advertising revenue fell $30.3 million, or 17.9 percent; print circulation revenue fell $6.8 million, or 7.3 percent; and even digital revenue decreased $2.6 million, or 5.7 percent.
“This was a busy quarter for our operations with the launch of new solutions for advertisers in our expanding digital and content marketing services portfolios, evolving our audience products with new content and design elements in several of our newspapers and exploring new revenue opportunities as with our new strategic collaboration with Mogo,” said Paul Godfrey, President and CEO at Postmedia. “At the same time we continue to work on the integration of our new brands and implementing the business transformation initiatives critical to our success in an unrelentingly challenging environment.”