VANCOUVER – The mainstream newspaper business continues to incur big losses with decline in readership and thus advertising with social media like Facebook and Twitter having taken away those who traditionally read newspapers to get their information.
The publisher of the Vancouver Sun, Province and several other dailies is reporting a bigger quarterly loss. Postmedia Network Canada lost $49.8 million in the quarter to the end of August, $1.7 million more than a year earlier, reported News 1130.
Revenue fell $22.5 million or 13 per cent to $146.8 million. Print advertising revenue fell 21 per cent, with declines across all categories. Even its digital revenue decreased five per cent to $1.1 million.
There has been persistent rumours that the company will have to shutter either Sun or the Province, which may now be coming to fruition!
CEO Paul Godfrey says “we continue to see the impacts of a very challenging revenue environment, particularly with respect to declines in print advertising” but adds that Postmedia is “focused on potential growth areas” with new formats that recently launched in Montreal.
