Canadian film and television production company Corus Entertainment (CJR.B) has reported a $769.9 million loss for this year’s second quarter and announced plans to cut 25% of its workforce.
The Toronto-based company said in its earnings statement that it plans to let go 800 staff by the end of August this year as it undertakes aggressive cost cuts to stem the tide of red ink.
Corus reported that its financial loss in Q2 grew 55% from a loss of $495.1 million a year earlier. At the same time, the company’s revenue in the quarter declined 16% to $331.8 million.
The company said its television revenue in the quarter fell 17% while its radio revenue declined 9.9% year-over-year.
Management said they continue to struggle with a decline in revenue for traditional broadcast television and radio programs.
Corus is also dealing with regulatory and content licensing issues. Its executive team also cited ongoing impacts from the 2023 Hollywood writer and actor strikes that delayed TV production.
The company is known for making original content in Canada such as the animated TV show “The Berenstein Bears” and the reality program “Big Brother Canada.”
Until recently, Corus Entertainment also held the rights to broadcast specialty channels in Canada such as HGTV and the Food Network.
In June, Corus lost the rights to those specialty channels to Rogers Communications (RCI.B), which takes control of them on Jan. 1, 2025.
Also in June, Corus Entertainment’s chief executive officer (CEO) Doug Murphy announced he was retiring and leaving the company.
Corus Entertainment’s stock has declined 90% over the last 12 months and currently trades at $0.16 per share, putting it deep down on the penny stock league tables.
A penny stock is defined as any security that trades for less than $5 a share.
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