Corus Entertainment records $752-million loss in first three months of COVID crisis

Corus’ quarterly consolidated revenue decreased by 24 percent over the same period in 2019

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Corus Entertainment, owner of Global TV, posted a huge charge on its operating statement due to COVID-19.
GLOBAL NEWS SCREEN SHOT
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It’s tough times for Canadian media companies.

That’s demonstrated by the recent quarterly results released Friday by Corus Entertainment, owner of the Global TV network and 39 Canadian radio stations, including Vancouver’s CKNW, Rock 101 and CFOX.

The Shaw family–created conglomerate reported a $752-million loss in the three months ending on May 31.

That was due to a $786.8-million non-cash charge it placed on its operating statement for “broadcast licences and goodwill impairment”. That amounted to $3.69 per share.

Impairment charges are declared when a company believes there’s been a “drastic reduction in the recoverable value of a fixed asset”, according to Investopedia. It can result from a change in the economic situation or from unforeseen hazards.

“In Q3, we saw increased viewership and engagement across all of our platforms, as Canadians rediscovered the power of television and Corus,” Corus Entertainment president and CEO Doug Murphy said in a news release. “With the economy materially impacted by the COVID pandemic, these audiences were not optimally monetized as advertising demand is tightly correlated to sales and economic activity.”

The company generated a $66.4-million profit over the same period in 2019.

The World Health Organization declared that COVID-19 was a pandemic on March 11. Corus Entertainment’s results roughly coincided with the first three months of the COVID-19 outbreak in Canada.

Revenues fell by 24 percent to $349 million compared to the March to May period in 2019.

Radio revenues plunged 52 percent to $17.6 million, whereas TV revenues fell 21.4 percent to $331.2 million.

Read more  HERE.

Published on June 27, 2020 at 8:55 pm by Ron Robinson

Comments

June 28, 2020 - 5:35 am

Donald Rump

Radio people wiser than myself, please me the following question. What does this mean for local radio in the Vancouver market? Does Corus keep the same staff?


June 28, 2020 - 7:33 am

oh brother

I don’t know about anybody else, but I completely stopped watching local news (and I NEVER watch national news) during the “pandemic”.

Since I was driving less, I did not tune in for the 3 minute “news” cast at the top of the hour on CHED.

I got my news from the Internet and entertainment from the free previews of the pay channels on TV.


June 28, 2020 - 5:10 pm

Alex

Just listen to NW or watch Global news, not hard to see why.


July 1, 2020 - 5:25 pm

Richard

HAHAHHAHA – I’m sure all the FAR LEFT WOKE FAKE NEWS people at CKNW (like Jody Vance) are certainly not helping…..


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