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Corus also said it will cease operating “two legacy AM radio stations” in Vancouver and Edmonton. Three weeks ago, it cancelled Global TV’s Big Brother Canada after 12 years on air. 

On Monday, Corus reported a loss of $769.9 million in Q3 compared with a loss of $495.1 million a year earlier. Revenue decreased by 16 per cent in the quarter to $332 million.

Television revenue in the quarter dropped to $308.2 million compared with $371.2 million last year, while radio revenue slipped 9.9 per cent to $23.6 million versus $26.2 million a year earlier.

Over the past year, the broadcaster has been treading water as advertising spending on mainstream television plummeted, competition from foreign streaming giants ramped up, all while regulatory spending requirements on Canadian programming hampered profitability.  

“Our board of directors has given us a clear mandate to decisively right-size the business and create a more sustainable future. This means our priorities are to aggressively cut costs and manage our liabilities,” co-CEO John Gossling said in a conference call Monday. 

“We’re making tough decisions to shutter areas of the business we can no longer sustain and pause longer-term development activities.” 

Corus is saddled with more than $1 billion in debt and faces bank loan repayments of nearly $300 million coming due within three years. Relief on certain borrowing restrictions imposed by the banks is set to expire by the end of August, raising concerns that the company could soon breach its debt covenants and go into creditor protection. Corus said it’s been actively discussing options for amendments or further relief on financial covenants with its lenders.

“While the company has been successful in obtaining requisite relief and amendments in the past, there can be no assurance it will be able to do so in the future,” Corus wrote in a statement. “There is material risk that the company will not meet its covenants.” 

As of Monday afternoon, Corus’s shares had dropped by 25 per cent to about 15 cents. Half of the analysts surveyed by Bloomberg recommend selling the stock, indicating it could become worthless.   

“While there is the small probability of a takeover from Rogers or another entity, we believe that this optimal outcome for shareholders is slim at best,” TD Cowen analyst Vince Valentini, who recommends selling the stock, wrote in a note to clients on Monday. 

In a move that might have pushed Corus to the edge, Rogers Communications recently acquired the rights to Warner Bros. Discovery lifestyle channels, including Oprah Winfrey Network, HGTV and the Food Network, which are some of Corus’s most successful brands. The deal will become effective Jan. 1.

Corus said on Monday that efforts to rebrand the home and culinary channels are underway, and that it’s already secured reality home renovation show “Extreme Makeover: Home Edition.” 

It said it is also “actively exploring all legal and regulatory remedies” with regards to the loss of the Warner Bros. agreements. 

Global News, which shed 35 unionized positions in June, remains a “growth engine” for Corus, especially when it comes to national versus local news, the company said. 

Global’s revenue increased by 3.5 per cent, while its total audience grew by two per cent across mainstream TV and digital year-to-date. 

“While much has been made of the challenges facing journalism worldwide, I’m pleased to say Global News has bucked the trend,” said Troy Reeb, co-CEO of Corus. 

But he hinted at the possibility of more layoffs.

“Going forward, our news team will continue to drive industry leading efficiency efforts in order to cut costs, while also using digital technology to keep creating the local content that is most prized by audiences and advertisers.” 

In the conference call, TD’s Valentini asked whether Corus would immediately take steps to restructure its existing debt into a mix of equity and new debt — a possible path forward as the company strives to survive. 

“Why not just pull the plug now and reset things?” he asked. 

“I wouldn’t say it’s as easy as you’re describing,” replied Gossling, “just to wave a magic wand and for that to happen. But I think you picked up on the path that we’re definitely going down.”