Declines in print advertising and circulation continue to drive down revenues for Postmedia Network Canada Corp. The newspaper publisher, which owns the National Post and 10 other major dailies as well as community newspapers, reported a loss of $3.9-million in the second quarter, compared with a profit of $40.6-million one year ago. However, that profit was recorded when the newspaper business was still in creditor protection under CanWest ownership, and did not include considerable expenses such as payments on some of its debt.
Revenues were down 4.1 per cent to $259.2-million in the three months ended May 31.
"The slow and sporadic recovery in the Canadian economy has affected both consumer and advertiser confidence, and we're seeing that in our industry" Postmedia president and chief executive officer Paul Godfrey said in a statement Tuesday.
Digital revenues were up roughly 8 per cent to $23.1-million. Digital accounts for almost nine per cent of Postmedia's business. The company relies on print circulation and print advertising for 89 per cent of its revenues.