The Financial Post reports in its Thursday edition that Postmedia Network's digital revenues are up double digits despite a $15.5-million quarterly loss. The Post's Emily Jackson writes that digital revenue increased 7.2 per cent to $29.9-million and digital advertising revenue rose 10 per cent.
"We are encouraged to see our sixth straight quarter of double-digit revenue increases from our digital advertising initiatives yet we continue to see a rate of legacy revenue declination that outpaces our digital revenue growth," chief executive officer Paul Godfrey said in a press release.
Canada's largest newspaper publisher blamed declines in print advertising and circulation revenue for a 10-per-cent drop in overall revenue during the third quarter, which fell to $171-million for the three months ended May 31 from $190-million in the same period last year.
"That reality means that we must continue to take the necessary steps to focus on areas where we can win and make the tough, yet decisive, decisions about where we need to make changes," Mr. Godfrey said.
In the same quarter last year, Postmedia reported a profit of $13-million, largely thanks to a $22.8-million recovery from cuts to the employee benefit plan.
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