Postmedia Network Canada Corp. reported a solid revenue bump in its fiscal second quarter, driven by gains in both advertising and circulation and boosted by its recent Saltwire acquisition in Atlantic Canada.
The company posted $110.8 million in revenue for the three months ended February 28, up 13.9% from the same period last year.
Excluding the impact of Saltwire, ad revenue rose 6% year-over-year, and other revenue — which includes content licensing and digital services — was up nearly 48%. Circulation revenue improved by 6.6%, pointing to stabilization in print subscriptions and modest digital gains.
Operating income before depreciation, amortization and restructuring came in at $9.8 million, reversing a loss in the same period a year earlier. On an adjusted basis, excluding Saltwire, operating income was $7.3 million.
“This was a strong quarter across our core business lines,” said CEO Andrew MacLeod, who pointed to the Saltwire deal as a key factor. “As we continue to face an immensely challenging media environment, our dedication to local communities will continue to guide the work we do.”
The company remains deep in the red on a net basis, posting a $16 million loss for the quarter, though that’s narrower than the $20.1 million loss in Q2 last year.
Postmedia attributed the year-over-year improvement to gains from asset sales, reduced restructuring charges and better overall operating performance—but said those were partially offset by higher interest costs, foreign exchange losses, and derivative-related write-downs.
YTD snapshot: revenue up but bottom line under pressure
For the six-month period ending February 28, revenue rose 9.5% to $220.1 million, including a 13.3% lift in ad revenue and 8.5% circulation growth. Excluding Saltwire, ad growth moderated to 3.5%.
Operating income before depreciation, amortization and restructuring for the six-month stretch rose to $15.3 million, more than double the $1.1 million reported in the same period last year.
Still, the company reported a $40.5 million net loss year-to-date, compared to $30.7 million in the same stretch last year—mainly due to rising debt servicing costs and currency headwinds.
MacLeod highlighted the company’s newly defined editorial mission, describing it as “a connecting force—thoughtful, uplifting, and bringing Canadians together through informed, meaningful journalism.”
With cost discipline showing up in the numbers and the Saltwire integration feeding top-line growth, Postmedia’s challenge now lies in balancing that momentum with the ongoing drag of its debt load and shifting advertising landscape.