Canada's Corus Entertainment Reports $752M Loss

It's also tough times for Canadian media companies.

According to straight.com, that's demonstrated by the recent quarterly results released Friday by Corus Entertainment, owner of the Global TV network and 39 Canadian radio stations.

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.

Doug Murphy

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.

Currently, more than 70 percent of the staff are working remotely during the COVID-19 pandemic, according to the quarterly statement.