Newspaper and multimedia company Postmedia Network has sharply reduced its fourth-quarter losses despite a decline in revenue blamed on lower advertising and print circulation income.

The publisher of the National Post, formerly part of Canwest, reported a loss of $2.3-million in the three months ended Aug. 31.

That compared with a net loss of $44.6-million between July 13 and Aug. 31, 2010, the most closely comparable period.

Revenue was $230.3-million, down $11-million relative to the prior year.

The company said the decline was primarily due to weaker print advertising revenue, which was down 5.3-per cent, or $8.2-million. Circulation revenue was off by 2.5 per cent, or $1.5-million, and other revenues declined $2.9-million due to the loss of a commercial printing contract in the first quarter.

The losses were partially offset by growth in digital revenue, which increased 8.2 per cent or $1.7-million relative to the same period in the prior year.

Postmedia also owns the Calgary Herald, Montreal Gazette and Ottawa Citizen.