- Postmedia (TSX:PNC.A) released its financial information for Q2 2025, covering the three and six months ended February 28, 2025, it painted a picture of growth and maneuvering
- The revenue for the quarter was C$110.8 million, a significant increase from the C$97.3 million in the same period the previous year
- Postmedia’s total operating expenses, excluding depreciation, amortization, and restructuring, decreased by C$1.1 million (1.1 per cent) compared to the same period last year.
- Postmedia stock (TSX:PNC.A) stock last traded at $0.95
The media world is evolving in some questionable ways, but Postmedia (TSX:PNC.A) has kept its business stable.
As the Toronto-based media company released its financial information for Q2 2025, covering the three and six months ended February 28, 2025, it painted a picture of growth and maneuvering.
A quarter of growth
The revenue for the quarter was C$110.8 million, a significant increase from the C$97.3 million in the same period the previous year. This C$13.5 million (13.9 per cent) rise was primarily driven by several key factors:
- Advertising revenue: Increased by C$6.9 million (16.0 per cent), showcasing the company’s ability to attract more advertisers and capitalize on market opportunities.
- Circulation revenue: Grew by C$2.2 million (6.6 per cent), indicating a steady demand for Postmedia’s publications.
- Other revenue: Surged by C$4.8 million (67.4 per cent), reflecting successful diversification into new revenue streams.
- Parcel revenue: Experienced a slight decline of C$0.4 million (2.9 per cent), a minor setback in an otherwise positive quarter.
Excluding the impact of the Saltwire asset acquisition, advertising revenue for the quarter increased by 6.0 per cent, and other revenue rose by 47.7 per cent, underscoring the company’s organic growth.
Managing expenses
Postmedia’s management of expenses was evident as total operating expenses, excluding depreciation, amortization, and restructuring, decreased by C$1.1 million (1.1 per cent) compared to the same period last year. This reduction was thanks to:
- Decreases in compensation: Efficient workforce management.
- Newsprint and distribution costs: Optimized supply chain and distribution processes.
- Other operating expenses: Streamlined operations.
However, production expenses saw an increase, reflecting investments in quality and efficiency. Excluding the Saltwire asset acquisition, total operating expenses decreased by C$12.0 million (11.7 per cent).
Operating income and net loss
Operating income before depreciation, amortization, and restructuring for the quarter was C$9.8 million, a substantial increase of C$14.6 million from the previous year. This growth was driven by higher revenues and reduced operating expenses. Excluding the Saltwire asset acquisition, operating income was C$7.3 million.
Despite these positive indicators, Postmedia reported a net loss of C$16.0 million for the quarter, an improvement from the C$20.1 million loss in the same period last year. The decrease in net loss was attributed to:
- Lower depreciation, amortization, and restructuring costs: Reflecting efficient asset management.
- Net financing expense reduction: Improved financial strategies.
- Gains on disposal of assets: Strategic asset sales.
However, the company faced increased interest expenses, foreign currency exchange losses, and losses on derivative financial instruments.
Year-to-date performance
For the six months ended February 28, 2025, Postmedia’s revenue was C$220.1 million, up from C$202.0 million in the previous year. This C$19.1 million (9.5 per cent) increase was driven by:
- Advertising revenue: Increased by C$12.5 million (13.3 per cent).
- Circulation revenue: Grew by C$5.5 million (8.5 per cent).
- Other revenue: Rose by C$1.1 million (7.4 per cent).
- Parcel revenue: Slightly decreased by C$0.1 million (0.2 per cent).
Excluding the Saltwire asset acquisition, advertising revenue for the six months increased by 3.5 per cent.
Operating expenses, excluding depreciation, amortization, and restructuring, decreased by C$5.0 million (2.5 per cent), with notable reductions in newsprint and production expenses. Excluding the Saltwire asset acquisition, expenses decreased by C$16.7 million (8.3 per cent).
Operating income before depreciation, amortization, and restructuring for the six months was C$15.3 million, up by C$14.2 million from the previous year. Excluding the Saltwire asset acquisition, operating income was C$10.5 million.
The net loss for the six months was C$40.5 million, compared to C$30.7 million in the previous year. The increase in net loss was due to higher interest expenses, foreign currency exchange losses, and losses on derivative financial instruments, partially offset by gains on asset disposals.
Can I get a quote?
“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,” Andrew MacLeod, Postmedia’s President and CEO said in a news release. “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.”
Postmedia Network Canada Corp. is the holding company that owns Postmedia Network Inc., a Canadian news media company representing more than 130 brands across multiple print, online and mobile platforms.
Postmedia stock (TSX:PNC.A) stock last traded at $0.95 but lost 2.06 per cent over the past five days and is down 29.10 per cent since this time last year.
Join the discussion: Find out what everybody’s saying about this stock on the Postmedia Network Canada Corp. Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top image: Postmedia.)
