Postmedia Network Canada Corp. reported a $13 million profit in the third quarter of 2017 Friday, with digital advertising revenue increasing 22.8 per cent year over year.

The newspaper chain — which includes the National Post and most of Canada’s major urban dailies including the Calgary Herald and all Sun publications — is attempting a turnaround in the midst of challenging times for print media as more and more people go online for news. Postmedia in recent months has cut 20 per cent of its salary costs through buyouts and layoffs, which reduced its workforce by about 800 people.

In an internal memo to staff, Postmedia chief executive Paul Godfrey said the company’s focus on new initiatives to increase digital revenue growth is paying off. But he warned that the cost-cutting is not over.

“It is tremendously exciting to find these new areas gaining traction and continuing to build momentum, no doubt,” Godfrey said. “But we also must continue to transform in order to be a business that supports and sustains a new business model.”

Those salary cuts, in addition to cuts to benefit plans for non-unionized employees, helped fuel Postmedia’s quarterly profit. In the third quarter of the previous year, the company reported a $23.7 million loss.

Print advertising and circulation revenue, however, continued their longstanding decline, contributing to an 11.1 per cent drop in total revenue for the quarter. Revenue from print advertising decreased by $22 million, or 19.1 per cent, while print circulation revenue dropped by $5.5 million, or 8.5 per cent compared to the same period the previous year.

Postmedia also announced the appointment of a new executive vice president and chief financial officer, Brian Bidulka. Bidulka was previously the chief financial officer for Research in Motion Ltd. — now known as BlackBerry Ltd. — and deputy chief financial officer at George Weston Ltd.