Postmedia Network Canada (PNCB) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 increased 13.9% year-over-year to $110.8 million, driven by gains in advertising and circulation, with the Saltwire acquisition contributing significantly.

• Operating income before depreciation, amortization, and restructuring rose by $14.6 million to $9.8 million in Q2 2025 compared to the prior year.

• Net loss for Q2 2025 narrowed to $16.0 million from $20.1 million year-over-year, reflecting improved revenues and lower expenses.

Financial highlights

• Q2 2025 advertising revenue grew by $6.9 million (16.0%), circulation by $2.2 million (6.6%), and other revenue by $4.8 million (67.4%).

• Excluding Saltwire, Q2 advertising revenue rose 6.0% and other revenue 47.7% year-over-year.

• Operating expenses (excluding depreciation, amortization, restructuring) decreased by $1.1 million (1.1%) in Q2 2025; excluding Saltwire, expenses fell by $12.0 million (11.7%).

• For the six months ended February 28, 2025, revenue increased 9.5% to $220.1 million, with advertising up 13.3% and circulation up 8.5%.

• Six-month net loss increased to $40.5 million from $30.7 million year-over-year, mainly due to higher interest expense and foreign exchange losses.

Outlook and guidance

• Management highlights positive momentum in advertising and circulation, with the Saltwire acquisition pivotal to recent results.

• The company remains focused on transformation initiatives and ongoing cost savings.

• Forward-looking statements caution about risks from competition, economic conditions, and digital transition.