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Postmedia Reports First Quarter Results

January 10, 2024 (TORONTO) – BԪapp. (“Postmedia” or the “Company”) today released financial information for the three months ended November 30, 2023.

Management’s Discussion and Analysis

Consolidated Financial Statements

“Q1 marked an important milestone in our transformation with the repayment of our first lien notes totaling $200M over the last seven years. Repayment and the subsequent refinancing of our debt and recently announced new credit ABL facility will provide needed flexibility to accelerate our transformation,” said Andrew MacLeod, Postmedia President and Chief Executive Officer.

“On an operating basis we were pleased with the growth in our parcel distribution business and the ongoing impact from the restructuring implemented in F23,” said Mr. MacLeod. “Additionally, we welcome and thank the Canadian government for its revisions to the Journalism Tax Credit and positive settlement with Google on the Online News Act. Both represent material stabilizers to Canada’s domestic media industry. We look forward to working with Federal and Provincial levels of government to implement structural reform in the Canadian media sector so the domestic industry, critical to Canadians, can regain its footing and secure our digital futures.”

First Quarter Operating Results

Revenue for the quarter was $104.6 million as compared to $124.2 million in the same period in the prior year, representing a decrease of $19.6 million (15.8%). The revenue decrease was primarily due to decreases in advertising revenue of $14.4 million (22.1%) and circulation revenue of $7.1 million (17.8%), partially offset by increases in parcel revenue of $3.6 million (39.1%).

Total operating expenses excluding depreciation, amortization and restructuring decreased $20.6 million, or 17.3%, for the quarter ended November 30, 2023, relative to the same period in the prior year. Decreases were experienced across all expense categories.

Operating income before depreciation, amortization, impairment and restructuring in the quarter was $5.9 million, an increase of $1.0 million relative to the same period in the prior year. The increase in operating income before depreciation, amortization and restructuring is due to the decrease in operating expenses, partially offset by the decrease in total revenue.

Net loss in the quarter ended November 30, 2023 was $10.6 million, as compared to a net loss of $15.9 million in the same period in the prior year. The decrease in net loss was primarily the result of a decrease in foreign exchange losses in the three months ended August 31, 2023 and the increase in operating income before depreciation, amortization and restructuring, partially offset by a decrease in gain on disposal of assets held-for-sale and other assets, loss on debt refinancing and a increases in depreciation and interest expenses.

Additional Information

Additional information, including financial statements and management’s discussion and analysis can be found on the Company’s website at or on SEDAR at .

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

About BԪapp.

BԪapp. (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, online, and mobile 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 , and .

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, 2023 and 2022. 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
Phyllise Gelfand
Vice President, Communications
(647) 273-9287
pgelfand@postmedia.com

Investor Contact
John Bode
Executive Vice President, Chief Financial Officer and Chief Transformation Officer
investors@postmedia.com

Consolidated Statements of Operations