黑料吃瓜总站 Reports First Quarter Results
January 9, 2025 (TORONTO) 鈥� 黑料吃瓜总站 Network Canada Corp. (鈥満诹铣怨献苷锯�� or the 鈥淐ompany鈥�) today released financial information for the three months ended November 30, 2024.
Management鈥檚 Discussion and Analysis
Consolidated Financial Statements
鈥淭he results of our first quarter signal a positive start to the 2025 fiscal year and demonstrate meaningful progress, with total revenue growing compared to this time last year,鈥� said Andrew MacLeod, 黑料吃瓜总站 President and Chief Executive Officer.
鈥淚 am particularly encouraged by the trajectory of our advertising revenue stream, which is showing positive year-over-year growth. This, combined with strong performance in our circulation and parcel divisions, reflects the successful execution of our strategic initiatives and the increasing value we deliver to our partners,鈥� said MacLeod. 鈥淎s we move forward, we remain focused on sustainable growth and operational excellence across all our business segments.”
First Quarter Operating Results
Revenue for the quarter was $110.3 million as compared to $104.6 million in the same period in the prior year, representing an increase of $5.7 million (5.4%). The revenue increase was primarily due to increases in advertising revenue of $5.6 million (11.1%), circulation revenue of $3.3 million (10.3%) and parcel revenue of $0.4 million (2.8%), partially offset by decreases in other revenue of $3.6 million (43.8%). Excluding the impact of the Saltwire asset acquisition, advertising revenue for the quarter increased by 1.4%. As such, excluding the impact of any acquisition related activity, advertising revenue has increased in comparison to the same quarter in the prior year for the first time since the third quarter in 2022.
Total operating expenses excluding depreciation, amortization and restructuring increased $6.1 million, or 6.1%, for the quarter ended November 30, 2024, relative to the same period in the prior year. The increase relates to increases in compensation, distribution and other operating expenses, partially offset by a decrease in newsprint and production expense.
Operating income before depreciation, amortization and restructuring in the quarter was $5.5 million, a decrease of $0.4 million relative to the same period in the prior year. The decrease in operating income before depreciation, amortization and restructuring is due to an increase in operating expenses excluding depreciation, amortization and restructuring, partially offset by an increase in total revenue. Excluding the impact of the Saltwire asset acquisition, operating income before depreciation, amortization and restructuring in the quarter was $3.1M.
Net loss in the quarter ended November 30, 2024 was $24.5 million, as compared to a net loss of $10.6 million in the same period in the prior year. The increase in net loss was primarily the result of an increase in restructuring expenses, interest expense, loss on disposal of right-of-use assets, foreign currency exchange losses and a decrease in operating income before depreciation, amortization and restructuring, partially offset by a decrease depreciation, amortization, and net financing expense.
Additional Information
Additional information, including financial statements and management鈥檚 discussion and analysis can be found on the Company鈥檚 website at or on SEDAR+ at .
Note: All dollar amounts are expressed in Canadian dollars unless otherwise specified.
About 黑料吃瓜总站 Network Canada Corp.
黑料吃瓜总站 Network Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that owns 黑料吃瓜总站 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 黑料吃瓜总站 Parcel Services. For more information, visit , and .
Forward-Looking Information
This news release may include information that is 鈥渇orward-looking information鈥� under applicable Canadian securities laws. The Company has tried, where possible, to identify such information and statements by using words such as 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渋ntend,鈥� 鈥渆stimate,鈥� 鈥渁nticipate,鈥� 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渃ould,鈥� 鈥渨ould,鈥� 鈥渟hould鈥� 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鈥檚 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鈥檚 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 鈥淩isk Factors鈥� contained in our annual management鈥檚 discussion and analysis for the years ended August 31, 2024 and 2023. 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.
For more information:
Media Contact
Communications
inquiries@postmedia.com
Investor Contact
John Bode
Executive Vice President, Chief Financial Officer and Chief Transformation Officer
investors@postmedia.com