Postmedia Network Canada Corp. (“Postmedia” or the “Company”) today released financial information for the three and six months ended February 28, 2025.

“As one of the largest independent Canadian news media organizations, our strength has always been rooted in our deep connection to communities across the country,” said Andrew MacLeod, Postmedia President and Chief Executive Officer. “Our connection is strengthened by our new editorial mission, which is designed to be a connecting force – thoughtful, uplifting, and bringing Canadians together through informed, meaningful journalism.”

“The results from our second quarter demonstrate the success of our commitment to Canadian communities,” said MacLeod. “With positive momentum in both our advertising and circulation divisions, our investment into Atlantic Canada, through our Saltwire acquisition, has played a pivotal role in achieving these results. As we continue to face an immensely challenging media environment, our dedication to local communities will continue to guide the work we do.”

Second Quarter Operating Results

Revenue for the quarter was $110.8 million as compared to $97.3 million in the same period in the prior year, representing an increase of $13.5 million (13.9%). The revenue increase was primarily due to increases in advertising revenue of $6.9 million (16.0%), circulation revenue of $2.2 million (6.6%) and other revenue of $4.8 million (67.4%), partially offset by decreases in parcel revenue of $0.4 million (2.9%). Excluding the impact of the Saltwire asset acquisition, advertising revenue for the quarter increased by 6.0% and other revenue for the quarter increased by 47.7%.

Total operating expenses excluding depreciation, amortization and restructuring decreased $1.1 million, or 1.1%, for the quarter ended February 28, 2025, relative to the same period in the prior year. The decrease relates to decreases in compensation, newsprint, distribution and other operating expenses, partially offset by an increase in production expense. Excluding the impact of the Saltwire asset acquisition, total operating expenses excluding depreciation, amortization and restructuring decreased $12.0 million or 11.7%.

Operating income before depreciation, amortization and restructuring in the quarter was $9.8 million, an increase of $14.6 million relative to the same period in the prior year. The increase in operating income before depreciation, amortization and restructuring is due to a decrease in operating expenses excluding depreciation, amortization and restructuring including an increase in total revenues. Excluding the impact of the Saltwire asset acquisition, operating income before depreciation, amortization and restructuring in the quarter was $7.3M.

Net loss in the quarter ended February 28, 2025 was $16.0 million, as compared to a net loss of $20.1 million in the same period in the prior year. The decrease in net loss was primarily the result of a decrease in depreciation, amortization, restructuring, net financing expense, including an increase in total revenues and gains on disposal of assets held for sale and other assets, partially offset by an increase in interest expense, foreign currency exchange losses and losses on derivative financial instruments.

Year to Date Operating Results

Revenue for the six months ended February 28, 2025 was $220.1 million as compared to $202.0 million in the same period in the prior year, representing an increase of $19.1 million (9.5%). The revenue increase was primarily due to increases in advertising revenue of $12.5 million (13.3%), circulation revenue of $5.5 million (8.5%), other revenue of $1.1 million (7.4%), partially offset by decreases in parcel revenue of $0.1 million (0.2%). Excluding the impact of the Saltwire asset acquisition, advertising revenue for the six months ended February 28, 2025 increased by 3.5%.

Total operating expenses excluding depreciation, amortization and restructuring decreased $5.0 million, or 2.5%, for the six months ended February 28, 2025, relative to the same period in the prior year. The decrease relates to decreases in newsprint and production expenses, partially offset by an increase in distribution and other operating expenses. Excluding the impact of the Saltwire asset acquisition, total operating expenses excluding depreciation, amortization and restructuring decreased $16.7 million or 8.3%.

Operating income before depreciation, amortization and restructuring for the six months ended February 28, 2025 was $15.3 million, an increase of $14.2 million relative to the same period in the prior year. The increase in operating income before depreciation, amortization and restructuring is due to an increase in total revenues, partially offset by an increase in operating expenses excluding depreciation, amortization, impairment and restructuring. Excluding the impact of the Saltwire asset acquisition, operating income before depreciation, amortization and restructuring in the six months ended February 28, 2025 was $10.5 million.

Net loss in the six months ended February 28, 2025 was $40.5 million, as compared to a net loss of $30.7 million in the same period in the prior year. The increase in net loss was primarily the result of an increase in interest expense, foreign currency exchange losses and losses on derivative financial instruments, partially offset by a decrease in depreciation, amortization, restructuring, net financing expense and an increase in gains on disposal of assets held for sale and other assets.

Additional Information

Additional information, including financial statements and management’s discussion and analysis can be found on the Company’s website at www.postmedia.com or on SEDAR+ at www.sedarplus.ca.

Note: All dollar amounts are expressed in Canadian dollars unless otherwise specified.

About Postmedia Network Canada Corp.

Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that owns Postmedia Network Inc., a Canadian newsmedia company representing more than 130 brands across multiple print and digital platforms. Award-winning journalists and innovative product development teams bring engaging content to millions of people every week whenever and wherever they want it. This exceptional content, reach and scope offers advertisers and marketers compelling solutions to effectively reach target audiences. Our expertise in home delivery and expanding distribution network powers Postmedia Parcel Services. For more information, visit www.postmedia.com, www.postmediasolutions.com and www.postmediaparcelservices.com.

Forward-Looking Information

This news release may include information that is “forward-looking information” under applicable Canadian securities laws. The Company has tried, where possible, to identify such information and statements by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “may,” “will,” “could,” “would,” “should” and similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance. Forward-looking statements in this news release include statements with respect the implementation and results of the Company’s transformation initiatives, continued benefits of historical results into future periods, the realization of anticipated cost savings, the identification and undertaking of ongoing cost savings initiatives. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others: competition from digital and other forms of media; the effect of economic conditions on advertising revenue; the ability of the Company to build out its digital media and online businesses; the failure to maintain current print and online newspaper readership and circulation levels; the realization of anticipated cost savings; possible damage to the reputation of the Company’s brands or trademarks; possible labour disruptions; possible environmental liabilities, litigation and pension plan obligations; fluctuations in foreign exchange rates and the prices of newsprint and other commodities.

For a complete list of our risk factors please refer to the section entitled “Risk Factors” contained in our annual management’s discussion and analysis for the years ended August 31, 2024 and 2023. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates, may differ materially from any such information and statements in this press release. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements.

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