CanWest shares dropped 35 per cent today on the release of its latest quarter results. While results are good in some areas (internet, National Post showing an operating profit for first time since 2000), most of the news is bad (ad revenues down, particularly in its western newspaper operations), exacerbated by the phrase it may in the coming quarter “be in violation of debt covenants”; i.e. it can’t pay some of its bills. Asper says he will try to renogiate some of these debts, and asked for time for the cost savings announced last month (mainly layoffs) to take effect. (all this from BNN today). It’s good news on the National Post front; would hate to lose another media voice, but it’s going to be tough sledding for the NP if the rest of the corporation is struggling. Stay tuned….
Posted on January 14, 2009 by billcarney