Red ink flows at media chain

Canwest Global Communications Corp. (TSX:CGS) has reported a quarterly net loss of $1.44 billion including a $1.19-billion writedown of assets, mostly in its newspapers.

TORONTO — Canwest Global Communications Corp. (TSX:CGS) has reported a quarterly net loss of $1.44 billion including a $1.19-billion writedown of assets, mostly in its newspapers.

Revenue was $637 million in Canwest’s second quarter ended Feb. 28, down by 10 per cent from $701 million a year earlier.

The net loss, worth $8.09 per share, compared with a year-ago loss of $34 million, 19 cents per share.

The owner of the Global TV network and the former Southam chain of big-city daily newspapers and the National Post said Thursday its operating profit for the quarter fell to $15 million from $95 million.

The writedown is Canwest’s second massive hit to the bookkeeping value of its holdings in six months, following a $1-billion charge in the fourth quarter on goodwill and licences in the television division.

The latest impairments, 83 per cent related to the publishing group, included goodwill, intangible assets and property and equipment, Canwest said, and “are consistent with those of other media organizations throughout North America and which reflect lower future profit expectations as a result of the current outlook for advertising in the operations.”

The Winnipeg-headquartered company, struggling to avoid insolvency under $3.9 billion of debt, stressed that the asset writedowns are non-cash charges “that do not affect Canwest’s liquidity, cash flows from operating activities, debt covenants or have any impact on future operations.”

Just Posted

Updated: Red Deer welcomes 2019 Canada Winter Games Team Alberta

About 250 Alberta athletes are participating in the Games

Trump says ‘things are going very well’ with North Korea

WASHINGTON — President Donald Trump said Saturday that “things are going very… Continue reading

NDP won’t stop until Trans Mountain is built, says minister

Deron Bilous speaks at Red Deer chamber luncheon

Trudeau fields questions at town hall meeting in St-Hyacinthe, Que.

SAINT-HYACINTHE, Que. — Ottawa’s decision to sign the UN compact for migration… Continue reading

Americans face deadline to file paperwork for Huawei executive’s extradition

OTTAWA — American authorities are facing a key deadline at the end… Continue reading

VIDEO: Students in MAGA hats mock Native American at Indigenous Peoples March

Diocese in Kentucky says it is investigating the matter, caught on video by onlookers

CONSUMER REPORT: What to buy each month in 2019 to save money

Resolve to buy all of the things you want and need, but pay less money for them

Anxiety in Alaska as endless aftershocks rattle residents

Seismologists expect the temblors to continue for months, although the frequency has lessened

Women’s March returns across the U.S. amid shutdown and controversy

The original march in 2017, the day after President Donald Trump’s inauguration, drew hundreds of thousands of people

Kriechmayr edges Swiss favourite Feuz to win WCup downhill

WENGEN, Switzerland — It takes a special run to beat Switzerland’s best… Continue reading

WestJet plane heading to Victoria slides off Edmonton runway, no injuries

EDMONTON — A WestJet plane has slid off an icy taxiway at… Continue reading

Sam Bennett scores twice, Flames beat Red Wings 6-4

Flames 6, Red Wings 4 CALGARY — Sam Bennett scored twice including… Continue reading

Rare ‘super blood wolf moon’ takes to the skies this Sunday

Celestial event happens only three times this century

Most Read