Postmedia Network Canada (PNCB) Q4 2024 earnings summary

Executive summary

• Revenue for Q4 2024 was $93.2 million, down 8.0% year-over-year, mainly due to declines in advertising and circulation revenue.

• Net loss for Q4 2024 was $3.1 million, a significant improvement from a net loss of $11.0 million in Q4 2023.

• Fiscal year 2024 revenue was $395.9 million, down 11.7% from the prior year, with net loss narrowing to $49.7 million from $72.6 million.

• Acquisition of Saltwire assets in Atlantic Canada completed, expanding local news and parcel delivery operations.

Financial highlights

• Q4 advertising revenue fell by $3.6 million (7.7%), circulation by $2.3 million (6.7%), and other revenue by $2.8 million (32.8%), partially offset by a $0.6 million (5.1%) increase in parcel revenue.

• Operating expenses excluding depreciation, amortization, and restructuring dropped $18.5 million (18.6%) in Q4 year-over-year.

• Operating income before depreciation, amortization, and restructuring rose to $12.2 million in Q4, up $10.3 million year-over-year.

• For fiscal 2024, advertising revenue declined $35.9 million (16.2%), circulation $16.9 million (11.5%), and other revenue $7.6 million (20.4%), offset by a $7.8 million (17.9%) increase in parcel revenue.

• Fiscal 2024 operating expenses excluding depreciation, amortization, and restructuring decreased $56.7 million (13.0%).

Outlook and guidance

• Management expresses optimism due to milestones achieved and government support, but emphasizes the need for continued commitment from Canadian governments.

• Forward-looking statements highlight ongoing transformation initiatives and anticipated cost savings, but caution about risks and uncertainties.