Postmedia Network Canada (PNCB) Q3 2024 earnings summary

Executive summary

• Revenue for the quarter ended May 31, 2024, was $100.8 million, down 9.3% year-over-year, mainly due to declines in advertising and circulation revenue.

• Net loss for the quarter was $15.9 million, an improvement from a net loss of $24.8 million in the same period last year, primarily due to lower restructuring expenses.

• For the nine months ended May 31, 2024, revenue was $302.8 million, down 12.8% year-over-year, with net loss at $46.6 million versus $61.5 million last year.

Financial highlights

• Advertising revenue declined by $6.5 million (12.0%) and circulation revenue by $3.4 million (9.4%) in the quarter compared to last year.

• Parcel revenue increased by $1.2 million (10.8%) in the quarter and $7.2 million (22.6%) year-to-date.

• Operating income before depreciation, amortization, and restructuring was $1.5 million for the quarter, down $2.9 million year-over-year.

• Total operating expenses excluding depreciation, amortization, and restructuring decreased by $7.5 million (7.0%) in the quarter.

Outlook and guidance

• The company highlights ongoing industry distress due to digital advertising dominance by foreign platforms and emphasizes the importance of government support and capturing a greater share of the market.

• Forward-looking statements caution about risks and uncertainties, including competition, economic conditions, and the realization of cost savings.