Digital revenue increased $2.4 million or 8.9 per cent
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Postmedia Network Canada Corp. swung to a net loss in the fiscal third quarter of 2022 even as revenues received a boost from the acquisition of East Coast chain Brunswick News Inc.
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Net loss for the three months ended May 31 was $16.8 million, the company said Thursday in a press release, down from a gain of $8.7 million in the year-ago period. The company attributed the loss to a number of factors, including a decrease in operating income and increases in impairment and refinancing expenses.
Revenue for the quarter, including the acquisition of BNI, was up $8.9 million or 7.9 per cent to $120.6 million. Without the impact of BNI, revenue was down by 2.3 per cent to $109.2 million, the company said.
Postmedia, which owns the Financial Post and numerous other media properties across Canada, said that decline was primarily the result of decreases in print circulation revenue and print advertising revenue, partially offset by an increase in digital revenue of $2.4 million or 8.9 per cent.
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The quarter was marked by two significant corporate developments.
The acquisition of BNI from J. D. Irving Ltd. closed on March 25, bringing that group’s daily and weekly newspapers, digital properties and parcel delivery business under the Postmedia umbrella. MacLeod said the integration was going “extremely well,” both in terms of systems and culture.
“We are excited to have them as part of the team,” he said.
During the quarter, the company also redeemed $16-million worth of its first-lien notes and completed a refinancing that extended the maturities of its first- and second-lien notes.
