Media industry 'distortions' creating an uncertain environment: Corus CEO
BNN Bloomberg
Corus Entertainment reported lacklustre fourth-quarter earnings Friday as its CEO pointed to a challenging media industry landscape.
The media company headquartered in Toronto missed analyst exceptions for the fourth quarter and suspended dividends, according to earnings numbers released Friday. Investors punished the stock by sending it plunging more than 20 per cent to an all time low of $0.70 during late-morning trading on Friday. SCALING BACK CANADIAN CONTENT
Corus was recently granted a letter from the CRTC indicating it would approve its request to cut back on Canadian content production.
Eased Canadian content regulations will give Corus more flexibility and better planning around content, Murphy said. "When your revenues are down like they were for us, 10 to 11 per cent on the year and the quarter, and your Canadian spending is up, that’s the wrong math for margins,” he said. GROWTH STRATEGY
