Postmedia Network Canada Corp., the country's largest chain of newspapers, is warning that cost-cutting at the company is not yet finished.
"There's no doubt that there's much work to be done both on the cost restructuring side and the revenue development side of our strategy," Postmedia chief executive Paul Godfrey said on a conference call Thursday to discuss the company's second-quarter earnings. "Our senior executive team believes the progress we are making on both fronts will continue. And that's thanks to the hard work being done across Postmedia, and our people who are focused on the future and are making tremendous efforts to move our company forward."
Postmedia, like many media companies, is struggling with severe declines in print advertising and circulation revenue. Growth in digital revenue has not kept pace to offset the industry's challenges.
The company's total revenue fell 13.5 per cent in the three months ended Feb. 28 to $180.8-million, driven mostly by a 22.6-per-cent decline in print advertising.
Print circulation was also down nearly 9 per cent. Digital revenue increased 10.3 per cent, to $28.1-million.
The Toronto-based owner of the National Post and other daily and community newspapers across the country reported a much slimmer loss of $26.5-million in the quarter, compared with $225.1-million in the same period last year. The difference was primarily due to a $187-million impairment charge recorded in the quarter last year.
Cost-cutting efforts helped to shave $21.6-million off of Postmedia's operating expenses in the second quarter. That effort is continuing.
Last month, Postmedia announced 54 layoffs at the Vancouver Sun and Vancouver Province, on top of voluntary severance packages that were offered there late last year. Similar layoffs have occurred at its other papers. The company cut hundreds of jobs last year and closed its printing plant in London, Ont. Other cost-saving measures included combining newsrooms in Vancouver, Calgary, Edmonton and Ottawa, where it counted more than one publication in a single market.
In 2016, just 13 per cent of advertising spending in Canada went to newspapers.