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Corus Warns About Its Future After Devastating Loss of Warner TV Rights
- Media firm is on verge of losing HGTV, Food Network programs
- It expects more TV revenue declines; shares drop to record low
Corus Entertainment building in Toronto, Ontario.
Source: Creative Touch Imaging Ltd./NurPhoto /Getty Images
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Canada’s Corus Entertainment Inc. warned that it may soon breach its debt covenants and said it’s planning more restructuring as advertising revenue spirals downward. The shares plunged to a record low.
Analysts advised shareholders to get out before the company is recapitalized. Adam Shine, an analyst at National Bank Financial, cut his price target to 1 Canadian cent. “It’s hard for us to ascribe any remaining value for equity holders,” he wrote.