Paul Godfrey steps down as Postmedia CEO as company announces $1.4M loss
Andrew MacLeod, Godfrey's second in command since 2016, becomes Postmedia's chief executive officer
Paul Godfrey is stepping down as CEO of Postmedia Network Canada Corp. but will remain as executive chairman of the company, which owns the National Post, other newspapers and digital publications.
Andrew MacLeod, who has been Godfrey's second in command since 2016, becomes Postmedia's chief executive officer.
The announcements came as the owner of the National Post and other Canadian newspapers announced a $1.4 million net loss for the quarter ended. Nov. 30.
Revenue for the Toronto-based publishing group fell to $171.3 million, down 9.4 per cent from just under $189 million a year earlier, when Postmedia reported a profit of $5.8 million with assistance from gains on asset sales.
Figures released Thursday show that Postmedia's expenses from all major expense categories declined including compensation, which fell 12 per cent to $58.3 million.
'A shame' move didn't come sooner, union says
Martin O'Hanlon, national president of CWA Canada — which represents workers at several Postmedia newspapers — said in a statement that "it's just a shame" that Godfrey didn't step aside years ago.
O'Hanlon said it was "especially galling" that Godfrey's compensation package for fiscal 2018 rose to $5 million, from $1.7 million a year earlier, while staff took concessions on pension and benefits.
Most of Canada's conventional advertising-funded media — including print, radio and television — have seen a multi-year decline in revenue under intense competition from internet-based companies such as Google and Facebook.
MacLeod said Postmedia also implemented initiatives that are expected to reduce costs by $4 million on an annualized basis while making a $8.7-million debt repayment.
After the quarter ended, Postmedia sold its Ottawa Citizen facility — the latest in a series of asset sales. Net proceeds will be put towards repaying $20.4-million in debt to bring outstanding first-lien debt to $105 million and second-lien debt to US$108.2 million.