Corus Entertainment anticipates dark days ahead.

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Corus Entertainment anticipates dark days ahead.

Postby kal » Wed Jun 27, 2018 7:50 am

Bad day for Corus Entertainment shares as dividend slashed.

The company could have reported a small profit but instead opted to take an impairment charge to reflect diminished future earnings.

"Corus chief executive Doug Murphy told analysts that the company has a long-term strategy for rebuilding its business in turbulent times, amid intense competition, changing technologies and an uncertain regulatory landscape."



http://business.financialpost.com/telecom/media/corus-entertainment-reports-third-quarter-loss-on-impairment-charge
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Re: Corus Entertainment anticipates dark days ahead.

Postby jon » Wed Jun 27, 2018 12:02 pm

Another article, in BNN Bloomberg, indicates that Corus recently reviewed their Broadcast Licenses for both Radio and Television. And came to the conclusion that they were overvalued by more than one Billion dollars.

While it might sound like a better idea to not do the review before Shaw's potential Sale of Corus this Fall, any potential buyer would surely demand such a review.

The Billion was taken as a "paper loss". Be interesting to know how much of a hit that turns into for each Corus Share's Book Value. And, even more interesting, the Before and After book value of CKNW or CHED.

Which all goes back to what I said earlier about the insane prices paid for Radio (and I assume TV) stations that really took off in the late 1990s as today's largest owners grew dramatically.
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Re: Corus Entertainment anticipates dark days ahead.

Postby PMC » Wed Jun 27, 2018 3:39 pm

This cbc piece covers the share value.. a well written piece too.

http://www.cbc.ca/news/business/corus-e ... -1.4724352
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Re: Corus Entertainment anticipates dark days ahead.

Postby Richard Skelly » Thu Jun 28, 2018 12:43 am

If I heard the radio news item correctly, the big drag on Corus is the almost $2.5 Billion in extra debt taken on to purchase assets from Shaw. Hardly an arms-length transaction. B
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Re: Corus Entertainment anticipates dark days ahead.

Postby pave » Thu Jun 28, 2018 3:27 am

I am reminded of the old adage that was pervasive in the Calgary real estate market:
"Last one holding - loses."
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