Vancouver Sun and Province staff offered buyouts, according to executive editor's tweet
Nearly every day, there's more troubling news out of the tottering Postmedia newspaper empire.
Today, Vancouver Sun executive editor Val Casselton tweeted a message that her paper and the Province are offering staff buyouts of up to $150,000.
It's probably good news for some aging reporters and editors, but not so good for readers and remaining staff concerned about further downsizing of the metropolitan daily papers.
It comes on the same day that the parent company has announced that it "intends to terminate the mandatory U.S. public reporting obligations relating to the 12.50% Senior Secured Notes", which are due in 2018.
This is legal, according to the company, because there are fewer than 300 "record holders of the Notes" in the United States.
No doubt, this will save some costs on lawyers for Postmedia, which reported a loss of $11.1 million in the second quarter of this fiscal year.
Things are looking quite bleak for the parent company, which took over the print assets of CanWest Global Communications Corp. when it couldn't pay its debts. Here's what Postmedia reported in its management discussion and analysis, which was issued on April 12:
We expect the print advertising market to remain challenging throughout the remainder of fiscal 2012. During the three and six months ended February 29, 2012, we experienced print advertising revenue declines of 10.6% and 11.2% respectively, as compared to the three and six months ended February 28, 2011, of which, approximately 61% and 69% respectively, was due to weakness in the national advertising category.
Print circulation revenue was $51.2 million and $105.5 million for the three and six months ended February 29, 2012, representing 25.8% and 24.5% of total revenue for such periods, respectively. Declines in circulation volume have been experienced over the last few years and continued in the current quarter.
Circulation volume decreases have been partially offset by price increases. We expect these trends to continue throughout the remainder of fiscal 2012.
Digital revenue was $20.9 million and $43.6 million for the three and six months ended February 29, 2012, representing 10.5% and 10.1% of total revenue for such periods, respectively. Digital revenues increased 0.5% and decreased 0.5%, respectively, in the three and six months ended February 29, 2012 as compared to the same periods in the prior year.
Growth in local digital advertising revenue was offset by declines in national digital advertising revenue, including a decline of $0.7 million and $1.4 million for the three and six months ended February 29, 2012, respectively, associated with a digital sales representation agreement that ended August 31, 2011.
Follow Charlie Smith on Twitter at twitter.com/csmithstraight.