Corus shares trade nearby all-time lows after $935.9M quarterly loss, division cut

Corus Entertainment Inc. shares were nearby their all-time lows Wednesday after a association announced a $935.9 million detriment tied mostly to a devaluation of a promote licences and slashed a division to accelerate debt reduction.

The company’s B shares were down 17 per cent or $1.03 during $5.17 in early afternoon trade on a Toronto Stock Exchange. Earlier, they had overwhelmed an intraday low of $5.12, descending past their lowest levels in scarcely 19
years as a open company.

The Toronto-based television, radio and prolongation association pronounced a detriment enclosed a $1.01-billion non-cash spoil assign associated to a radio promote licences and goodwill, an unsubstantial item associated to acquisitions.

Impairment charges generally simulate a destiny earning energy of a business’s assets. Excluding those and other responsibility items, Corus would have had a distinction in a 3 months finished May 31.

Cutting debt

The reduced division will obstruct about $150 million per year to shortening Corus debt — a pierce that government pronounced would give it some-more financial coherence in a long-term.

Besides holders of Corus publicly traded non-voting shares, a division cut will impact members of a initial Shaw family, that controls both a media association and Shaw Communications Inc. by their voting stock.

Corus arch executive Doug Murphy told analysts that a association has a long-term devise for rebuilding a business in violent times, amid heated competition, changing technologies and an capricious regulatory landscape.

“While a evident concentration will be on debt rebate payments, we will continue to make advantageous investments that support a critical priorities to safeguard a association stays critical for a prolonged term,” Murphy said.

“Development of a long-term skeleton began prolonged before this quarter, some-more than 3 years ago in fact.”

The merger of Shaw Media — primogenitor of a Global radio network and a series of specialty wire channels — was partial of a devise though increasing a Corus debt bucket and done Shaw Communications a vital shareholder for a initial time given 1999, when Corus was spun off as an eccentric publicly traded company.

Dividend payments

Corus pronounced Wednesday it will start profitable a quarterly division of 6 cents per category B share starting in Sep compared with a stream division that is a monthly remuneration to shareholders of 9.5 cents per category B share.

The rebate in a division came as Corus says a detriment amounted to $4.49 per share for a entertain finished May 31 compared with a distinction of $66.7 million or 33 cents per share a year ago.

Revenue in what was a company’s third entertain totalled $441.4 million, down from $461.6 million in a same entertain final year.

Television income fell to $403 million compared with $422.3 million a year ago, while radio income fell to $38.4 million compared with $39.3 million in a same entertain final year.

On an practiced basis, that excludes a spoil assign and other one-time items, Corus says it warranted $78.1 million or 37 cents per share for a entertain compared with an practiced distinction of $70.1 million or 35 cents per share a year ago. Analysts on normal had approaching a distinction of 36 cents per share, according to Thomson Reuters Eikon.

Article source: https://www.cbc.ca/news/business/corus-earnings-dividend-shares-1.4724352?cmp=rss