Postmedia slips to loss on one-time charge
Postmedia Network Canada Corp. reported a loss of $12.3 million in its latest quarter as the company took a one-time charge related to restructuring and saw revenue slide.
Included in the results was a $13.4-million charge related to restructuring and other operations in the quarter ended Feb. 28 compared with a loss of $7.6 million a year earlier.
Postmedia said revenue slipped to $242.5 million, down from $254.4 million as a slide in advertising and circulation revenue offset growth in digital revenue.
The company also said that it has refinanced some of its debt that will save millions in interest payments.
"Our digital first strategy continues to advance throughout our operations, cost reduction efforts have been very successful and we are making consistent progress on debt reduction," president and chief executive Paul Godfrey said in a statement.
"We remain committed to the continuing transformation of Postmedia Network, positioning it to embrace the opportunities ahead while delivering value to all of our stakeholders."
Last month, Postmedia filed a preliminary prospectus with regulators as it prepares to list its shares on the Toronto Stock Exchange.
The media organization — which owns 11 English-language daily newspapers such as the National Post, Vancouver Sun and Ottawa Citizen — plans a listing by the end of July.
However, the company has said it has no immediate plans to make an initial public offering, which is the usual course when stocks begin trading on the Toronto Stock Exchange.
Postmedia, backed by a New York hedge fund, bought the newspapers from Canwest last year as part of the court-supervised restructuring of Canwest Global.
The company has cut about 500 full-time jobs, or roughly nine per cent of its workforce, as part of the restructuring.