Postmedia Network Canada Corp. ("Postmedia" or the "Company") has released its financial information for the three months ended November 30, 2024, marking a positive start to the 2025 fiscal year. The Company reported meaningful progress, with total revenue growing compared to the same period in the prior year. Andrew MacLeod, Postmedia's President and Chief Executive Officer, expressed his encouragement regarding the trajectory of advertising revenue, which showed positive year-over-year growth. This growth, combined with strong performance in circulation and parcel divisions, reflects the successful execution of strategic initiatives and the increasing value delivered to partners.



First Quarter Operating Results
Revenue for the quarter was $110.3 million, representing an increase of $5.7 million (5.4%) compared to the same period in the prior year. The revenue increase was primarily due to increases in advertising revenue of $5.6 million (11.1%), circulation revenue of $3.3 million (10.3%), and parcel revenue of $0.4 million (2.8%), partially offset by decreases in other revenue of $3.6 million (43.8%). Excluding the impact of the Saltwire asset acquisition, advertising revenue for the quarter increased by 1.4%. As such, excluding the impact of any acquisition-related activity, advertising revenue has increased in comparison to the same quarter in the prior year for the first time since the third quarter in 2022.

Total operating expenses excluding depreciation, amortization, and restructuring increased $6.1 million, or 6.1%, for the quarter ended November 30, 2024, relative to the same period in the prior year. The increase relates to increases in compensation, distribution, and other operating expenses, partially offset by a decrease in newsprint and production expense.

Operating income before depreciation, amortization, and restructuring in the quarter was $5.5 million, a decrease of $0.4 million relative to the same period in the prior year. The decrease in operating income before depreciation, amortization, and restructuring is due to an increase in operating expenses excluding depreciation, amortization, and restructuring, partially offset by an increase in total revenue. Excluding the impact of the Saltwire asset acquisition, operating income before depreciation, amortization, and restructuring in the quarter was $3.1 million.

Net loss in the quarter ended November 30, 2024, was $24.5 million, as compared to a net loss of $10.6 million in the same period in the prior year. The increase in net loss was primarily the result of an increase in restructuring expenses, interest expense, loss on disposal of right-of-use assets, foreign currency exchange losses, and a decrease in operating income before depreciation, amortization, and restructuring, partially offset by a decrease in depreciation, amortization, and net financing expense.



Postmedia's strategic initiatives have contributed to its positive start in the 2025 fiscal year. The Company's focus on sustainable growth and operational excellence across all business segments has resulted in meaningful progress. As Postmedia continues to execute its strategy, investors should monitor the Company's progress and consider the potential impact of its strategic initiatives on future financial performance.