Postmedia posts $12.3-million net loss in second quarter

Declining print advertising revenue and shrinking circulation is largely to blame for Postmedia’s $12.3-million second quarter loss.

Revenue for the six months ended February 28 hit $529.6-million, just over $11-million less than was earned during the same period during 2010’s fiscal year.

Print advertising revenue totaled $356.9-million for the first six months of this year’s fiscal period, representing roughly two-thirds of the company’s revenue. It also represents a two per cent decrease compared to the same period last year.

Print circulation dollars have contributed $116.9-million to date.

According to the Management’s Discussion and Analysis (MDA) report:

“Over the last few years, significant print advertising declines have been driven by the economic downturn as well as a continuing shift in the advertising dollars from newspaper advertising to advertising in other formats, including online and digital platforms.”

So, how is that online revenue looking?

Postmedia digital revenue hit $45.1-million for the first six months of the fiscal year, which represents nine per cent of the total revenue for that period.

In a release, Paul Godfrey, Postmedia president and CEO, says he’s “pleased with the progress” the company has made on the digital media front:

“Our digital first strategy continues to advance throughout our operations, cost reduction efforts have been very successful and we are making consistent progress on debt reduction. We remain committed to the continuing transformation of Postmedia Network, positioning it to embrace the opportunities ahead while delivering value to all our stakeholders.”