Postmedia Network Reports Decline in Net Earnings, Increase in Digital Revenue

By: Zain Nabi  |   January 11th, 2013   |   Business, News

Postmedia Network witnessed a decline in its net earnings, while it experienced an increase in digital revenue in the quarter that ended in November 2012, according to the data recently released by the media company.

 

As per the details, the company secured a net profit of $8.3 million in the first quarter. This amount is considerably low as compared to the profit of $28.3 million the company got a year earlier. From September to November 2012, Postmedia Network generated total revenue of $211.7 million. In the same quarter a year before, the company had posted total revenue of $231.1 million. However, the company saw better trends in terms of digital revenue with a 10 per cent increase in the quarter.

 

Such trends are well in line with the international standards, as many companies worldwide are reportedly getting better revenues from the new media instead of other traditional forms of media. Postmedia Network is undergoing a three-year restructuring process that intends to cut short its expenses, and the management believes that it has done well to serve that goal. According to Vancouver Sun, Paul Godfrey, president and chief executive of Postmedia Network, said:

 

“We will continue to identify and implement additional cost reductions through fiscal 2013 and remain confident we will hit the three-year target we announced previously. Our focus on reducing legacy costs and paying down corporate debt remains a priority.”

 

Meanwhile, Postmedia Network, just like many other media houses in the world, has started charging the people who intend to visit their websites for content. The authorities are of the view that providing free-of-cost content is not going to serve their financial interests and that is why a new model has been created in which only limited amount of information will be shared with free users.

 

Source: Vancouver Sun