The parent company of StackTV and Global News, Corus Entertainment, is in troubled waters. Corus revealed its Q3 earnings today and revenues have declined, while also announcing more job cuts.
Corus said consolidated revenue dropped 16% for the quarter and 15% year-to-date. Consolidated segment profit fell 30% for the quarter and 16% year-to-date. There was a net loss attributable to shareholders of $769.9 million ($3.86 per share) 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.
On the company’s earnings call, Co-Chief Executive Officer John Gossling announced that by the end of August, Corus expects to have reduced its full-time workforce by 25%—roughly 800 jobs—compared to September 2022. Corus had already cut about 500 employees by the end of May.
Corus will also axe two AM radio stations in Vancouver and Edmonton. Gossling mentioned more future cost-saving opportunities, saying, “we can and will do much more.” That’s going to hurt local jobs in both cities.
“The third quarter results reflect the ongoing impacts of a challenging advertising environment,” said Troy Reeb, Co-Chief Executive Officer in a statement. “We have secured a top-notch Fall schedule to deploy across our traditional linear and streaming portfolio including STACKTV and the Global TV App. Our team is actively pursuing near term revenue opportunities, execution of our strategic rebranding initiatives for our top lifestyle services and swift implementation of efficiency measures,” he added.
Corus says its losses are blamed on last year’s Hollywood writers strike, lower advertising revenues, inflation and competition as the reason it’s suffering right now.
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Corus should ban their Global tv news anchors.
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