Postmedia reported Friday it had a net loss of $12.8 million in its second quarter, which ended February 29, as compared to a $5.1 million loss for the same period a year ago.

It said revenue for the quarter was $134.2 million as compared to $145.7 million in the same period in the prior year, representing a decrease of $11.5 million or 7.9 per cent. The revenue decline was primarily due to decreases in print advertising revenue of $9.9 million or 16.5 per cent and print circulation revenue of $2.0 million or 4.0 per cent partially offset by a digital revenue increase of $1.5 million or 5.4 per cent, added the media company in a news release.

Revenue for the six months ended February 29 was $290.8 million as compared to $317.0 million in the same period in the prior year, a decrease of $26.2 million or 8.2 per cent. The revenue decline was primarily due to decreases in print advertising revenue of $22.9 million or 16.7 per cent and decreases in print circulation revenue of $5.2 million or 5.0 per cent. Digital revenue increased by $4.4 million or 7.1 per cent year to date with digital advertising revenue up 8.5 per cent, explained Postmedia.

Net loss in the six months was $15.8 million, as compared to $6.5 million in the same period in the prior year.

“The current global pandemic is affecting all businesses and since the close of our second quarter Postmedia has been focused on keeping employees safe, delivering critical information to Canadians and putting our company in the best possible position to emerge from the current crisis and move ahead on our proven strategy,” said Andrew MacLeod, President and Chief Executive Officer, Postmedia. “The economic disruptions emanating from the pandemic challenge our ability to foresee the long term impact on our business but we are committed to preserving liquidity, constraining costs and maximizing revenues.”

Postmedia said it has applied for the Canada Emergency Wage Subsidy for the period from March 15 to April 11 in the amount of $7.3 million and it has qualified for CEWS for the periods from April 12 to June 6, anticipating the additional amount to be $13 million to $15 million.

“On April 28, 2020, the Company implemented additional cost saving measures including temporary layoffs affecting approximately 50 employees, the closure of 15 community publications in Manitoba and Ontario resulting in approximately 30 permanent layoffs and temporary salary reductions from five per cent to 30 per cent for a range of employees with salaries in excess of $60,000, which reductions will be re-evaluated in three months’ time,” it said.

“During the three months ended February 29, 2020, the Company implemented initiatives including compensation expense reductions, real estate rationalization, production efficiencies and other transformation programs, which are expected to result in approximately $9 million of net annualized cost savings. The Company intends to continue to identify and undertake ongoing cost reduction initiatives in an effort to address revenue declination in the legacy print business.”