Postmedia Network Canada says its losses mounted in the third quarter as Canada’s largest newspaper chain saw advertising and circulation revenues tumble at a faster pace.
The owner of the National Post and numerous major city dailies reported a loss of $140.8 million in the three months ended May 31.
That’s a major decline from losses of $20.6 million in the same period a year earlier.
Earlier this year, Postmedia acquired Sun Media’s English-language newspapers and digital properties, and this marks the first quarter the Sun assets were included in its financial results.
Postmedia attributed the weaker quarter to a $151.2-million charge it booked for goodwill and intangible assets, a figure that included a charge of half a million dollars to recognize losses on assets up for sale.
The financial figures show how quickly the Postmedia papers are losing the foundation of their business.
Postmedia said print advertising revenues, excluding the Sun papers, crumbled 20.2% to $19.1 million. Print circulation revenues were also down 6.5% to $3.2 million.
Digital advertising revenue — considered by Postmedia to be a crucial part of its future business — declined four per cent to $900,000.
Postmedia said it would look at further ways to reduce its overall expenses as it deals with the continuing decline of ad revenues. The company said the Sun papers provide new ways to help reduce another $50 million in operating costs by the end of fiscal 2017.
