Corus Entertainment, the parent company of StackTV and Global News, recently disclosed its Q3 earnings report, revealing a decline in revenues along with plans for additional job cuts. Here’s a breakdown of the key points from Corus’s financial update:
– Consolidated revenue dropped by 16% for the quarter and 15% year-to-date.
– Consolidated segment profit fell by 30% for the quarter and 16% year-to-date.
– A net loss attributable to shareholders of $769.9 million ($3.86 per share) was reported for the quarter, primarily due to non-cash impairment charges totaling $960.0 million.
– Year-to-date net loss stands at $747.0 million ($3.74 per share).
– The proforma net debt to segment profit ratio increased to 3.91 times as of May 31, 2024, up from 3.62 times on August 31, 2023.
– Free cash flow decreased to $18.4 million for the quarter and remained flat at $75.0 million year-to-date.
During the earnings call, Co-Chief Executive Officer John Gossling announced plans to reduce Corus’s full-time workforce by 25%—approximately 800 jobs—by the end of August compared to September 2022. The company had already cut around 500 employees by the end of May.
In addition to job cuts, Corus will be shutting down two AM radio stations in Vancouver and Edmonton as part of cost-saving measures. Gossling emphasized that there are more opportunities for cost-saving initiatives on the horizon.
Troy Reeb, Co-Chief Executive Officer, acknowledged the challenges posed by a tough advertising environment but expressed optimism about upcoming initiatives to drive revenue growth. He highlighted plans for a compelling Fall schedule across traditional linear and streaming platforms like STACKTV and the Global TV App.
Corus attributed its losses to various factors including last year’s Hollywood writers strike, lower advertising revenues, inflation, and increased competition in the market. Despite these challenges, the company remains focused on executing strategic rebranding efforts and efficiency measures to navigate through this period.
As Corus continues to adapt to changing market conditions, stay tuned for updates on how they plan to overcome current challenges and drive future growth in the telecommunications industry.
