Media Beat: A Corus of Skeptical Shareholders (Column)
Also this week: Cogeco profits roar ahead, Jimmy Pattison keeps growing and a possible future in which generative AI takes over the internet.
With almost $800M in maturing bank debt and bonds that need to be renegotiated in the next several years, analysts are questioning the ongoing viability of Corus Entertainment with its hemorrhaging financials pulling down its stock price to $0.15, giving it a market capitalization of only $29M, down from a $25 share price and $2B market cap at the end of 2014. The Globe and Mail cites a TD report that has argued that the actual equity value may be zero, given $1.1B of net debt.
As per The Star’s business reporter Anna Pereira, “At its height, Global Television was a Canadian powerhouse, watched by more than 17 million people weekly, but today experts say it needs to take drastic action if the show is to go on. After a series of financial blows, high profile layoffs, lost licensing rights and executive departures,” analysts have told the newspaper that the network’s owner will need to dramatically overhaul the company — or be allowed to refinance its debt — to stave off bankruptcy.”
That today comes with the news Monday that Corus reported a loss of $769.9M in Q3 compared with a loss of $495.1M a year earlier. Revenue decreased by 16% in the quarter to $332 million; TV revenue dropped to $308.2M compared with $371.2M last year, and radio revenue slid 9.9% to $23.6M versus $26.2M a year earlier.
As of Sept. 2023, the radio and TV divisions employed 5K and Corus has now announced plans to trim 800 from the headcount by August, and sell off CKGO 730 Vancouver and CHQT AM Edmonton.
On the bright side, co-CEO Troy Reeb is quoted by the Canadian Press as saying, “While much has been made of the challenges facing journalism worldwide, I’m pleased to say Global News has bucked the trend.”
The newsroom must be sighing with relief.
As of July, the Corus portfolio of television services includes 33 specialty television channels, 15 conventional TV stations and 39 radio stations.
Cogeco profits roar ahead
Quebec-based telco and media company Cogeco Inc. has reported a profit attributable to shareholders of $19M for its third quarter, up from a loss of $34.5M a year earlier.
The company says revenue was $777.2M, up from $767.6M during the same quarter last year.
Growth is attributed to the ongoing expansion of its internet subscriber base. It’s expected the company will introduce a mobile service in Canada soon. It already offers the service in parts of the U.S.
Jimmy Pattison just keeps on growing
With $16B in sales last year, the privately held Jimmy Pattison Group continues to be helmed by its red-headed 95-year-old founder Jimmy Pattison, a business magnate who started the diversified company with one car dealership purchased on a loan back in 1961. Today, JPG has 50K employees spread across various divisions that include automotive, advertising, media, agricultural equipment, food and beverage, entertainment, exporting, financial and real estate and
The latest addition announced to his sprawling empire is the addition of The Save Mart Companies – a 194-grocery chain spread across California and Nevada.
Already the largest owner of grocery outlets in Western Canada, the new portfolio of grocery outlets is similarly branded with flash names like Save-On-Foods, PriceSmart and Buy-Low Foods.
When Jimmy wants his Scottish oatcakes and a fresh pot of Keiller’s marmalade, Jimmy gets and nary a farthing spent will go wasted.
Aside from groceries, Pattison Media operates from Vancouver Island to Winnipeg with full ownership of 48 radio stations, 3 TV stations, 19 online news portals, and a digital marketing and web design agency.
Open AI has everyone scared, even Google
Generative AI is the nuclear bomb of the Information Age. This is the headline for a new video that warns that in the future 99% of all content found online will have been created by generative AI. The authors claim more content is now available through AI bots than the entire library of books ever written, and it’s doubling every two weeks. This is a documentary you are going to want, even need to watch.
