Perennial money-maker Corus hit with $935 million Q1 loss

Strong competition among radio stations and alternates to conventional TV are said to be a major reasons behind a stunning loss of some $4.49 a share at Corus Entertainment Inc. The first quarter (ending May 31) loss sent Corus reeling on the TSX. The stock was down 11 per cent early Wednesday after the company announced a $935.9 million loss tied mostly to a devaluation of its broadcast licences.
The firm, which owns Global Television among many other TV franchises, also slashed its dividend to accelerate debt reduction. Analysts on average had expected a profit of 36 cents a share. Corus has a large presence in Canadian broadcasting apart from Global. It owns 39 radio stations and a portfolio of 45 specialty television services.
Corus is especially prominent within the children’s television market, through its ownership of the domestic YTV, Treehouse TV and Teletoon/Télétoon networks, the animation studio Nelvana and book publisher Kids Can Press, and localized versions of the Cartoon Network, Disney Channel, Disney Junior, Disney XD, and Nickelodeon brands. Corus Entertainment’s voting majority is held by the company’s founder J R Shaw and his family and a 40% stake of Corus stock is owned by Shaw Communications.