CWA Canada Statement on Paul Godfrey

Jan. 10, 2019

Media union CWA Canada, which represents staff at several Postmedia newspapers, welcomes the announcement that Paul Godfrey is stepping down as CEO of Postmedia.

“It’s just a shame it didn’t happen years ago,” CWA Canada President Martin O’Hanlon said. “It is not hyperbole to say that Godfrey has been a disaster for the newspaper industry in this country.”

“Godfrey has presided over the destruction of a once-proud chain, laying off thousands of staff and leaving decimated newsrooms. It has been a nightmare for workers, bad for society, and damaging to our democracy.”

“Especially galling is the fact that Godfrey took a huge raise last year, to $5 million, and funnelled millions more to Postmedia’s vulture fund owners – while demanding that staff take concessions on pension and benefits. Unfortunately, there is no indication that new CEO Andrew MacLeod will be any different.”

For more information, contact:

Martin O’Hanlon

President, CWA Canada

The Media Union

The glitch in Postmedia’s digital switch

Source: theglobeandmail
read entire story here

Paul Godfrey escorted directors of Postmedia Network Canada Corp. (PNC.A-T10.00—-%) on a tour of the Calgary Herald earlier this year to showcase the struggling newspaper company’s digital future.

The Postmedia chief executive officer presented a remodelled newsroom where teams juggled written and visual content for the Herald’s websites, social media platforms such as Twitter and its 128-year old newspaper. The Herald has been so much “quicker off the mark” with digital initiatives, Mr. Godfrey said, that it is now one of the company’s most profitable divisions, and a beacon for change at Canada’s largest newspaper publisher.

read entire story here

 

Postmedia feels impact of ‘slow and sporadic’ economic recovery, posts Q3 loss

Source: winnipegfreepress.com

TORONTO – Postmedia Network Canada Corp. lost $3.9 million in its third quarter as the newspaper and digital publisher pulled in less print advertising revenues and had higher expenses.

The owner of the National Post newspaper and other major media properties said the loss amounted to 10 cents per share on $259 million in revenue, mainly from advertising, for the three months ended May 31.

The company said Tuesday that consumer confidence was shaky during the quarter and advertisers responded by holding back.

“I think that we’ve had a couple of quite good months and then you have one bad month. We don’t seem to have any real trend taking place,” Postmedia CEO Paul Godfrey said on a conference call, describing the situation as “choppy.”

Godfrey said national advertising was up, but retail classified ads were down, as retailers dealt with consumers worried a recession could return, and the HST in British Columbia deterred shoppers from making big-ticket purchases.

“There’s a lot of uncertainty out there which I think is creating people to sit on their hands for a while,” he said.

He said Postmedia (TSX:PNC.A), is seeing some signs of improvement in the early weeks of the fourth quarter, but revenue visibility “remains poor.”

Godfrey’s comments echo those made by rival Torstar Corp. (TSX:TS.B). The publisher of the Toronto Star also reported lower print advertising revenues during its first quarter in May, saying it is hard to predict the print advertising environment and the pace of economic recovery.

Year-earlier figures for Postmedia aren’t directly comparable because the newspapers were still part of Canwest, which was undergoing a court-supervised restructuring that saw its television assets go to Shaw Communications (TSX:SJR.B) and its newspaper division going to creditors that helped form Postmedia.

In the third quarter of its 2010 financial year, the Canwest papers recorded a profit of $40.6 million with $270 million of revenue. In the first nine months of its 2010 financial year, the company reported a $94.9-million profit and $811 million in revenues.

For the first nine months of its 2011 financial year, which ended May 31, Postmedia lost $10.6 million or 26 cents per share on $788 million in revenue.

Postmedia, which began trading on the Toronto Stock Exchange last month, recorded an $11-million loss on debt prepayment, versus zero in the same quarter last year.

Godfrey said the company’s team is focused on new approaches for delivering content, and providing solutions for advertisers and marketers, repaying debt and accelerating revenue generating opportunities.

The company owns 11 English-language daily newspapers including the National Post, Vancouver Sun and Ottawa Citizen as well as the Canada.com website, online versions of its daily papers and deal-a-day website SwarmJam.com.

The Perils of Postmedia: News staff out, managing editor in, at Edmonton Journal

Source: albertadiary.ca – By David J. Climenhaga

This post also appears on rabble.ca.

The Press” … back in the day when the Edmonton Journal was a great newspaper. Below: soon-to-be Journal managing editor Stephanie Coombs, former Journal publisher Linda Hughes, Colonist founder Amor de Cosmos.

Just when it didn’t seem like another drop of blood was left to squeeze from its various Alberta stones, Don Mills, Ont.-based Postmedia Network Inc. pushed another five senior newsroom employees out the door of the Edmonton Journal on Friday.

The carnage at the Journal included two veteran copy editors, two graphic artists and a National Newspaper Award winning photographer.

Reports from Alberta’s deep south indicate a similar number of newsroom staffers were made to walk the plank at the Calgary Herald about a week earlier.

The situation at the Journal is actually worse than it appears at first glance, however, since not included in the casualties listed above are a veteran newsroom administrative support worker, gone from the building the same day after decades on the job, a talented young reporter who recently quit in disgust at the lack of support for journalistic effort, the newsroom’s Web and social media guru, who also quit, and a significant number of distribution employees.

Several other respected Journal reporters, editors and executives had already departed either during a round of layoffs and packages last fall or soon thereafter. Together, insiders claim these departures leave the paper with only about a dozen city-side reporters to cover the news in a city of close to a million people.

Possibly related to this, an announcement is expected tomorrow of a newsroom managerial reshuffling that is said to include the addition as managing editor of Stephanie Coombs, late of the Ottawa Citizen and more recently city editor of the self-evidently unhyphenated Victoria Times Colonist.

Ms. Coombs’ coruscating trajectory follows the path across the cosmos described by the Journal’s recently appointed editor in chief Lucinda Chodan, who is also a veteran of the once-great Victoria newspaper founded by Amor de Cosmos in 1858. That paper was known in those pre-media non-network days as the Daily British Colonist. For his sins, Mr. de Cosmos was briefly premier of British Columbia.

Probably more important to the decision-makers at Postmedia, however, was Ms. Chodan’s history at the Edmonton Sun, which some time ago went down the same dreary path now being trod by the Journal’s weary and diminished editorial staff.

Interestingly, some Journal insiders assert the latest bloodletting will leave the city room with a staff-to-management ratio of about two to one – that is, half a dozen or so senior editors to supervise about a dozen front-line newsroom workers.

At the risk of flogging a dead horse, anyone who has served any time in the newspaper business understands that this kind of staff cutting usually improves the bottom line in the short term at the expense of the quality of the journalistic product over time. The effect of this phenomenon is one of the key reasons for the decline of the Canadian newspaper industry, which the newspaper executives who made these foolish decisions inevitably blame on the Internet.

The desire for short-term gains regardless of cost at the metaphorically named Postmedia may be related to the corporation’s parlous financial state, described last month in the company’s own Financial Post publication as the effect of a combination of non-recurring charges related to cost-cutting and “declines in print advertising.” However, a series of acquisitions and other business decisions made over several years by owners including Southam Inc., Hollinger Inc. and Canwest all contributed to this doleful state of affairs.

Certainly, Postmedia President and CEO Paul Godfrey was quoted as saying in the same FP story that “debt repayment and cost management will continue to be priorities in the ongoing transformation in our business.” And so it would seem!

Postmedia may be extremely anxious to cut costs to make its stock more attractive, since it is “imperative” for the company to sell shares “if it wishes to remain a Canadian newspaper publisher under tax laws,” the FP story explained. “Under the law, advertisers are permitted to write down ad expenses spent on advertising with Canadian newspapers.”

Alas for Postmedia, its current owners are made up “primarily of U.S. hedge funds and banks that are former creditors of Canwest Global Communications Corp. The group bought the assets after the media conglomerate filed for creditor protection and was forced to sell.”

This all has remaining Journal employees on their knees nightly praying to whatever deity they worship that someone will buy the Journal and somehow return it to its salad days, when it had the reputation as the best newspaper between Vancouver and Toronto – or at least between Kamloops and Medicine Hat.

Lending credence to their fevered hopes is the fact that Linda Hughes, the Journal’s respected former editor and publisher who retired in 2006, was last year appointed to the board of Torstar Corp., publishers of the Toronto Star. As readers of this blog know well, the Star is the last great newspaper still publishing in Canada.

At least once before in recent years, Torstar looked at the Journal as a potential addition to its stable of newspapers.

Will Ms. Hughes and the Torstar Boys ride to the rescue of the beleaguered Journal? Tune in next time for another exciting episode of the Perils of Postmedia!