TORONTO -- Postmedia Network Canada Corp. said Tuesday it lost $12.1 million in its latest quarter compared with a loss of $2.7 million a year ago, as the newspaper publisher worked to cut costs and transform itself.
"While we continue to face a challenging and uncertain outlook with respect to our traditional business model, we are aggressively launching initiatives that proactively support our transformation from a print newspaper publisher to a digital and audience focused media company,'' CEO Paul Godfrey said.
"The changes we are making will produce a more nimble, forward-looking media company, capable of producing higher quality and better targeted products.''
The loss for the three months ended May 31 amounted to 30 cents per share, compared with a loss of seven cents per share a year ago.
Revenue sank about seven per cent to $212 million for the period ended May 31, from $227.6 million last year, as advertising revenue fell 10 per cent or about $14.5 million.
Postmedia said print circulation revenue fell $2.8 million or 5.1 per cent from a year ago, while digital revenue increased $1.5 million or 6.8 per cent.
Other revenue increased $300,000 relative to the same period last year.
Total operating expenses excluding depreciation, amortization and restructuring decreased $5.3 million or 2.9 per cent compared with a year ago due to lower compensation, and newsprint and distribution costs, which were partially offset by an increase in other operating costs.
The Toronto-based media company said restructuring expenses helped drive operating income down to $4.1 million, $23 million lower than the same period last year.
Postmedia, formerly part of the Canwest media empire broken up in 2010, owns the Vancouver Province, the Vancouver Sun, the Edmonton Journal, the Calgary Herald, the Regina Leader-Post, the Saskatoon StarPhoenix and the Windsor Star, as well as the Canada.com website.
Earlier this year, the publisher said it was axing several of its Sunday papers and announced plans to cut an unspecified number of jobs in an effort to offset declining ad revenue.
Postmedia said combined with other cost-saving initiatives over the next two quarters, the company expects to save $35 million to $40 million annually.
As part of the changes, the company is expanding its Hamilton operations to handle the editorial production of newspaper pages.
Postmedia will also roll out its metered paywall to websites in additional markets with the intention of expanding it across all of its network.
Last month, the company sold its property in Toronto that's home to the National Post and its corporate head office for $24 million to The Rose & Thistle Group Ltd.
The deal includes a lease-back of the property to Postmedia for 18 to 24 months while it relocates to a new building.
Canada's 7 Media Giants
Postmedia - $1.1 Billion
Postmedia was born in 2010, when the bankrupt Canwest media chain was broken up. A consortium led by then-National Post CEO Paul Godfrey bought Canwest's newspaper assets, including the National Post, Ottawa Citizen and Calgary Herald, as well as both English-language dailies in Vancouver.<br> <br> Pictured: Postmedia CEO Paul Godfrey<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>
Torstar - $1.48 Billion
Torstar's flagship property is the Toronto Star, Canada's largest newspaper. It also owns the Metroland chain of weeklies and the internationally popular Harlequin, publisher of pulp romances.<br> <br> Pictured: The Toronto Star building in downtown Toronto.<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>
Shaw - $4.74 Billion
Western Canadian cable TV giant Shaw entered the media big leagues with the 2010 purchase of Canwest's broadcasting assets, including the Global TV network. The company was founded by Jim Shaw and is still controlled by his family.<br> <br> Pictured: CEO Brad Shaw<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em><br> <br> <em>CORRECTION: An earlier version of this slide stated that Shaw had purchased Canwest's newspaper assets. It only purchased the broadcasting assets. The company had backed out of an earlier attempt to buy three CTV stations.</em>
Quebecor - $9.8 Billion
Founded by Pierre Peladeau and run by his son, Pierre-Karl Peladeau, Quebecor owns the Sun Media and Osprey newspaper chains, as well as cable provider Videotron, Quebec TV network TVA, and a number of publishing houses.<br> <br> Pictured: Pierre-Karl Peladeau<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>
Rogers - $12.1 Billion
Founded by Ted Rogers, Rogers Communications is a major player in cable TV and wireless services. The company controls Rogers Media, which operates 70 publications, 54 radio stations and a number of TV properties including CityTV and the Shopping Channel.<br> <br> Pictured: CEO Nadir Mohamed<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>
Woodbridge (Thomson Reuters) - $13.8B
Woodbridge is the holding company owned by the billionaire Thomson family. It controls 55 per cent of Thomson Reuters, one of the world's largest news services organizations. Woodbridge's revenue is not reported, but Thomson Reuters reported revenue of $13.8 billion in 2011.<br> <br> Pictured: The late Kenneth Thomson, company chairman, in Toronto in 2003.<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>
Bell Canada (BCE) - $18.1 Billion
BCE is one of Canada's largest corporations, and owns telephone, Internet and TV infrastructure. Its subsidary Bell Media purchased the CHUM group of radio stations in 2006, and Astral Media in 2012. The company also controls CTV, making it a dominant media player in Canada.<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>