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.

 

Postmedia to shutter 6 community newspapers, halting print editions at 3 others

Postmedia says it is closing down six community newspapers in Ontario and Alberta, and halting the print editions at three other papers in Manitoba and Ontario as it moves to cut costs.
The company said in a note to staff that the Graphic in Portage la Prairie, Man., the Northern News in Kirkland Lake, Ont., and the Pembroke Observer in Pembroke, Ont., will halt their print editions but keep a digital presence.
Meanwhile, the newspapers scheduled to close in the coming weeks include two in Alberta, the Camrose Canadian and the Strathmore Standard, along with four publications in Ontario, the Kapuskasing Northern Times, the Ingersoll Times, the Norwich Gazette and the Petrolia Topic.

Postmedia also said the High River Times in Alberta will shift from publishing twice per week to weekly.

The company said the changes are part of its plan to reduce salary expenses by 10 per cent by Aug. 31, the end of its fiscal year.
Some jobs have been identified for elimination, while voluntary buyouts will also be offered to all unionized employees, and to all editorial staff, both unionized and non-unionized. (CP)
MORE

Global News poaches Mercedes Stephenson from CTV

Global News has announced the appointment of Mercedes Stephenson as the network’s new Ottawa Bureau Chief as well as the permanent host of Global News’ flagship political affairs program, The West Block.
Stephenson spent the past seven years at CTV News and CTV News Channel. She was born and raised in Calgary.

Irene Gentle named Editor of the Toronto Star

Irene Gentle has been named Editor of the Toronto Star, the first woman to hold this position in the publication’s 126-year history.
Gentle, 48, joined the Star in 2011 as business editor and had been managing editor since June 8, 2016. She has also been assistant managing editor and city editor at the Star.
Full Star story

CBC cancels On the Money business show, cites lack of funds

The Globe and Mail's Simon Houpt writes that the CBC is cancelling its afternoon business show, On the Money, because of a lack of money, after staff at the public broadcaster were told a shortfall had left it unable to produce all of its current programming while also continuing its digital transformation.

The cancellation marks the first time CBC’s cable news channel will be without regularly scheduled business news coverage since News Network launched as Newsworld in 1989.

The show, hosted by Peter Armstrong, had rebranded from The Exchange to On the Money only last fall. Its final broadcast will be Thursday, June 28.

Full Globe and Mail story