Overall operating expenses decreased by 24%
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Postmedia Network Canada Corp. posted a slim profit for its fiscal second quarter despite a 21 per cent decline in overall revenue, according to results released on Thursday.
Revenue fell to $106 million for the three-month period ended Feb. 28, 2021, down from $134.2 million in the same period a year ago. The company, which owns numerous publications and digital properties including the National Post, saw a decline in print advertising of 29 per cent and a nearly 21-per-cent decline in digital revenue.
Postmedia ended the quarter with net earnings of $700,000, compared to a net loss of $12.8 million for the same period last year.
Overall operating expenses — which exclude depreciation, amortization, impairment and restructuring — decreased by 24 per cent to $31 million.
In a press release, the company said it had an unrestricted cash balance of $52.8 million as of the end of February.
It also indicated it would pay $17 million toward reducing its first-lien debt by the end of May, leaving $67 million outstanding from an initial $225 million following a recapitalization in October 2016.
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At the start of the pandemic, the federal government unleashed the Canada Emergency Wage Subsidy (CEWS) program, which helps cover partial wage costs for eligible companies. Postmedia met the eligibility requirements and in its second quarter recorded a compensation expense recovery of $5.7 million related to CEWS. Since the inception of CEWS, the company has recognized $52.4 million in connection to the subsidy.
“Across our organization, our teams are working together to accelerate our transformation, grow our audiences and architect new digital models to monetize,” Andrew MacLeod, president and chief executive officer of Postmedia, said in a statement. “Our second quarter represents continued progress on our strategy with measured optimism for the future.”
