TORONTO - Postmedia Network Canada Corp. says it lost $112.2 million in its latest quarter on a $93.9-million impairment charge and a drop in revenue.
The media company, which owns several newspapers including the National Post, Vancouver Sun and the Ottawa Citizen, said Wednesday it lost $2.79 per share in its third quarter compared with a loss of 30 cents per share or $12.14 million a year earlier.
Its operating loss was $95.6 million, compared to an operating income of $4.1 million in the third quarter of 2012.
Total revenues dropped 9.5 per cent to $191.8 million from $212 million a year ago, while the company cut operating expenses.
Print advertising revenues were down 13.5 per cent. Print circulation revenues were off 5.9 per cent, while digital revenues grew 2.2 per cent from the prior year.
The company announced in April that it will no longer have publishers at its newspapers, as part of broad changes to centralize operations and reduce costs.
Postmedia's non-cash impairment charges for the quarter ended May 31 included $6.1 million related to a production facility that is up for sale and $87.7 million related to goodwill and intangible assets.
The company has realized about $62 million in annualized cost savings since it announced a three-year plan last summer to cut operating costs by 15 to 20 per cent. The total included $4 million from initiatives implemented in the third quarter.
Chief executive Paul Godfrey said Postmedia's transformation continued in the quarter with the rollout of its paid content models and cost saving initiatives.
"We will continue on this path, transforming a traditional media company into one that leverages future opportunities with a structure that supports a new model," he said in a statement.
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