Ad drop hammers Canwest bottom line
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Hey there, time traveller!
This article was published 27/11/2009 (6043 days ago), so information in it may no longer be current.
WINNIPEG – An “extraordinary” decline in advertising revenues propelled Canwest Global Communications into unchartered waters — a sea of red ink — at the end of its fiscal year.
The beleaguered Winnipeg-based media company reported a net loss of $1.69 billion, or $9.51 per share, for the 12-month period ended Aug. 31. The owner of Global Television and a chain of big-city daily newspapers said $1.42 billion of the total came from non-cash “impairment” losses on goodwill, intangible assets, property and equipment, interest rate and foreign currency swap losses of $150 million and foreign exchange gains of $278 million.
The year-end loss is 62 per cent greater than the $1.04 billion loss it reported for its 2008 fiscal year.
Canwest reported a net loss of $111 million (62 cents per share) for its fourth quarter. Revenues for the June to August period were $624 million, 13 per cent lower than $721 million a year earlier.
From a purely operational point of view, however, Canwest reported a profit of $25 million for the quarter and $310 million for the year, down from $60 million and $551 million respectively for the year-earlier periods.
“While the abrupt and unprecedented decline in advertising revenue had a significant impact on Canwest, most business units continued to perform better than the industry average with online and specialty television reporting growth even in the face of recession,” Leonard Asper, Canwest’s president and CEO, said in a release.
Canwest, which filed for bankruptcy protection in October under billions of dollars of debt, continues to negotiate a restructuring plan with its debt holders. Many industry observers believe when the dust settles that Asper will be replaced at the company’s helm.
Canwest (CGS/TSX Venture Exchange) shares fell a half-cent in early trading this morning to 7.5 cents on volume of 51,000.
History
Updated on Friday, November 27, 2009 10:19 AM CST: Corrects typo.