Postmedia Reports Second Quarter Results

TORONTO--(BUSINESS WIRE)--Postmedia Network Canada Corp. (“Postmedia” or the “Company”) today released financial information for the three and six months ended February 28, 2026.

“While we continue to navigate ongoing pressures in advertising and the broader media environment, growth in parcel and content revenue helped offset some of these declines in the quarter,” said Andrew MacLeod, President and Chief Executive Officer of Postmedia. “At the same time, optimized cost management initiatives continue to improve our operating profile year over year.”

“Looking ahead, we are encouraged by the opportunities created through the recent acquisition of accelerate360 Canada and by our continued investment in digital transformation, highlighted most recently by the launch of the new Montreal Gazette website. Together, these efforts strengthen our connection with audiences and customers, support our diversified revenue strategy, and position the company for growth and sustainable long-term performance.”

Second Quarter Operating Results

Revenue for the quarter was $110.0 million as compared to $110.8 million in the same period in the prior year, representing a decrease of $0.8 million (0.8%). The revenue decrease was primarily due to decreases in advertising revenue of $4.8 million (9.6%) and circulation revenue of $2.5 million (7.2%), partially offset by increases in parcel revenue of $3.5 million (25.4%) other revenue of $3.0 million (24.9%).

Total operating expenses excluding depreciation, amortization, impairment and restructuring and other decreased $1.8 million, or 1.8%, for the quarter ended February 28, 2026, relative to the same period in the prior year. The decrease relates to decreases in compensation, newsprint and production expense, partially offset by an increase in distribution expense.

Operating income before depreciation, amortization and restructuring and other in the quarter ended February 28, 2026 was $10.7 million, an increase of $0.9 million relative to the same period in the prior year. The increase is due to a decrease in operating expenses excluding depreciation, amortization, impairment and restructuring and other, partially offset by a decrease in total revenue.

Net income in the quarter ended February 28, 2026 was $3.5 million, as compared to a net loss of $16.0 million in the same period in the prior year. The increase in net income was primarily the result of an increase in operating income before depreciation, amortization, impairment and restructuring and other, an increase in foreign currency exchange gains and a decrease in losses on derivative financial instruments, partially offset by an increase in interest expense and a decrease in gain on disposal of right of use assets and assets held-for-sale.

Year to Date Operating Results

Revenue for the six months ended February 28, 2026 was $221.8 million as compared to $221.1 million in the same period in the prior year, representing a increase of $0.7 million (0.3%). The revenue increase was primarily due to increases in parcel revenue of $7.0 million (26.2%) and other revenue of $3.3 million (19.7%), partially offset by decreases in advertising revenue of $4.9 million (4.6%) and circulation revenue of $4.7 million (6.7%).

Total operating expenses excluding depreciation, amortization, impairment and restructuring and other increased $0.2 million, or 0.1%, for the six months ended February 28, 2026, relative to the same period in the prior year. The increase relates to increases in distribution and production expenses, partially offset by a decrease in compensation, newsprint, and other operating expenses.

Operating income before depreciation, amortization, impairment and restructuring and other for the six months ended February 28, 2026 was $15.8 million, an increase of $0.5 million relative to the same period in the prior year. The increase in operating income before depreciation, amortization, impairment and restructuring and other is due to an increase in total revenue, partially offset by an increase in operating expenses excluding depreciation, amortization, impairment and restructuring and other.

Net loss in the six months ended February 28, 2026 was $16.9 million, as compared to a net loss of $40.5 million in the same period in the prior year. The decrease in net loss was primarily the result of an increase in operating income before depreciation, amortization, impairment and restructuring and other, an increase in foreign currency exchange gains and a decrease in restructuring and other expenses, partially offset by an increase in losses on disposal of right of use assets and assets held-for-sale, an increase in interest expense, and an increase in losses on derivative financial instruments.

Additional Information

Additional information, including financial statements and management’s discussion and analysis can be found on the Company’s website at www.postmedia.com or on SEDAR+ at www.sedarplus.ca.

Note: All dollar amounts are expressed in Canadian dollars unless otherwise specified.

About Postmedia Network Canada Corp.

Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that owns Postmedia Network Inc., a Canadian newsmedia company representing more than 130 brands across multiple print and digital platforms. Award-winning journalists and innovative product development teams bring engaging content to millions of people every week whenever and wherever they want it. This exceptional content, reach and scope offers advertisers and marketers compelling solutions to effectively reach target audiences. Our expertise in home delivery and expanding distribution network powers Postmedia Parcel Services. For more information, visit www.postmedia.com, www.postmediasolutions.com and www.postmediaparcelservices.com.

Forward-Looking Information

This news release may include information that is “forward-looking information” under applicable Canadian securities laws. The Company has tried, where possible, to identify such information and statements by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “may,” “will,” “could,” “would,” “should” and similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance. Forward-looking statements in this news release include statements with respect the implementation and results of the Company’s transformation initiatives, continued benefits of historical results into future periods, the realization of anticipated cost savings, the identification and undertaking of ongoing cost savings initiatives. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others: competition from digital and other forms of media; the effect of economic conditions on advertising revenue; the ability of the Company to build out its digital media and online businesses; the failure to maintain current print and online newspaper readership and circulation levels; the realization of anticipated cost savings; possible damage to the reputation of the Company’s brands or trademarks; possible labour disruptions; possible environmental liabilities, litigation and pension plan obligations; fluctuations in foreign exchange rates and the prices of newsprint and other commodities.

For a complete list of our risk factors please refer to the section entitled “Risk Factors” contained in our annual management’s discussion and analysis for the years ended August 31, 2025 and 2024. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates, may differ materially from any such information and statements in this press release. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements.