So, penny stock, literally.

Still amazes me that AM 640 is still standing (for the time being at least, anyway).



PJ

Radiowiz wrote:

Paul Jeffries wrote:

Still amazes me that AM 640 is still standing (for the time being at least, anyway).

If Sauga 960 can somehow stay on the air, surely AM 640 will survive.  
 

Difference: No shareholders.

RadioAaron wrote:

RadioActive wrote:

I can't get into the full article about the future of Corus. But frankly, the two paragraphs on display tell you everything you need to know. Especially that last sentence. It's the National Bank's prediction for what the stock is worth. 

 

And in those two paragraphs, it manages to mention a station (Q107 Calgary) that hasn't existed in 3 years.

A valid point. Someone may be careless in their information, but at least Calgary's 107 is still on the air.
They'd look far worse if they tried to include CHML...

Radio needs to take some blame...have you seen the ratings - not worth what they are paying Ben and gang. Also it's the same 5 ads over and over 

The bondholders are taking over

https://financialpost.com/news/corus-entertainment-bondholders-take-control-debt-for-equity-swap

ED1 wrote:

torontostan wrote:

Toronto radio is the least of Corus' problems..... they would be doing well if they were their only assets. Global and speciality are killing them

The Financial Post article above states that the TV assets are profitable... so which divisions are sinking them? Radio? 

Firstly, I said Toronto radio is the least of their problems, which is true. Many of their other radio stations could be unprofitable. They claim that both their TV and radio holdings are profitable, however TV profitability is down 6% in the 9-month period, whereas radio is up by 5% in the same period. In short, Corus conventional TV is dying much faster than radio.......

Their TV stations are responsible for most of the debt they've incurred due to the high cost of rights acquisitions and the like. They break a lot of their expenses into a third "corporate" segment which would be significantly smaller if it excluded sunk costs required to operate television stations

From the earnings report: "The decrease in segment profit was principally a result of Television advertising and subscriber revenue declines, and an increase in amortization of program rights due to the return of scripted Hollywood content"

Aytononline wrote:

I hope there is a way to turn Corus around, but I just checked the Corus stock. It has dropped by almost 97% in the last 5 years. So who every gets a hold of it will have there work cut out for them, and I am sure the company will look very different than it does today.

 
I agree with you Aytononline. I had a contract producing for Corus and enjoyed my time working for them. My creative director was great, and there was generally a good vibe in the work place, a couple of perks and a couple of decent staff functions as well, plus being right on Toronto’s waterfront was a nice location. Wish them all the best.

Last edited by Shorty Wave (October 10, 2025 8:28 am)

Problem with Corus - is layoffs and cancellation to save money instead of taking risk and doing things that could turn into profit 

darcyh wrote:

I'm still not really sure what got the company into so much debit. I would appreciate a brief explanation if that's possible.

How can they continue to operate?

As I said, the $2 billion debt from buying the Global TV network is what got them into this mess.

They can continue to operate because the people who loaned them the money do not want to lose their money, so they loaned them more money to prevent bankruptcy, or, more likely, someone purchasing Corus in a deal that "forgives" the debt.

Last edited by jon (October 11, 2025 11:12 am)

jon wrote:

Dparker wrote:

Problem with Corus - is layoffs and cancellation to save money instead of taking risk and doing things that could turn into profit 

Taking risks requires more borrowed money and I doubt their lenders were agree to provide it.
 

But yet product placement is a no go. Big Brother Canada had lots of that, but it wasn't enough to help cover cost of production and still show enough profit? I had no problem watching them sit on a Leon's (or Brick) couch while eating Wendy's food, discussing who they think should be next to go in the house. One of the prizes (for one of the challenges) was an ad for a movie we should all go and see.  
Product placement is brilliant, and it cuts a lot of the cost.