Canwest reports $1.58 billion loss in nine months, $110 million loss for third quarter

Canwest – owner of major Canadian dailies – has reported a net loss of $110 million for the three months ending on May 31, one day after a share value collapse of around 50 per cent on the TSX.

The total loss suffered by the company in the nine month period ending on May 31 now amounts to $1.58 billion.

Revenues were down substantially as well.

For the first three months revenues were “$727 million compared to $846 million for the same period last year. Operating profit before restructuring and impairment expenses was $118 million for the third quarter compared to $182 million in the third quarter of fiscal 2008.”

“For the first nine months of fiscal 2009, reported revenues decreased 7% to $2.24 billion and reported operating profit before restructuring impairment and other one time expenses declined by 27% to $410 million,” Canwest said Friday.

The media company has been struggling to restructure its massive debt for several months now and has survived several deadlines imposed by creditors.

On Thursday, the company’s share value plunged  7.5 cents to close at 6.5 cents on the Toronto Stock Exchange, a decline of  nearly 54 per cent. The volume traded was nearly 10.2 million shares.

The dramatic share decline led to speculation the company may have to file for bankruptcy protection. However, Canwest said in its statement that its performance is better or at par with other companies struggling with the recesion.

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Posted by News Editor on Jul 10 2009. Filed under Canada. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry