Net earnings in the year were $33.7 million, compared to a loss of $16.2 million in 2020. The better performance was primarily due to a settlement gain related to employee benefit plans of $63.1 million, lower depreciation, amortization and restructuring expenses, an increase in foreign exchange earnings, lower operating costs and restructuring.
The company said advertising revenue losses intensified during the COVID-19 pandemic, but it was helped by more than $23 million in CEWS support. The program support employers facing financial hardship and reimburses them for employee salaries. Going forward, Postmedia will continue to reduce compensation expenses, and other initiate other programs that will save about $2 million per year.
“While we remain optimistic that Canada’s economic recovery is underway, as evidenced by Postmedia’s 38.4% digital advertising growth [in the third quarter], the systemic industry challenges due to the dominance of global digital giants remain unchanged,” said Andrew MacLeod, president and chief executive officer of Postmedia. “We look forward to Canada’s newly elected government acting swiftly on its promise to address these inequities with a legislative solution.”