-- Postmedia Network Canada (PNC-A.TO, PNC-B.TO) after the close on Thursday reported a swing to net profit in its fiscal second quarter, driven by higher foreign exchange rates, despite an annual decline in revenue.
The company said its net income in the quarter ended Feb. 28 stood at C$3.5 million, or $0.04 per share, compared to a loss of $16.0 million, or $0.16, in the year-prior quarter.
The newspaper publisher attributed the swing to profit on jump in operating income, 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.
Operating income before depreciation, amortization and restructuring and other in the quarter was $10.7 million, an increase of $0.9 million relative to the same period in the prior year.
Revenue for the quarter was $110.0 million as compared to $110.8 million a year earlier. The revenue drop was primarily due to lower advertising and circulation revenue, partially offset by increases in parcel revenue, the company said.
"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 chief executive Andrew MacLeod. "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."