Canwest stock falls ahead of fourth-quarter results, warnings of cost cutting

CanWest News Service
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TORONTO The stock of Canadian publisher and broadcaster Canwest Global Communication (TSX:CGS.A) fell Wednesday as the company faces cost pressures and gets set to announce fourth-quarter results.

Shares in the Winnipeg-based company traded at 84 cents, down seven cents, or 7.7 per cent, on the TSX. CanWests more narrowly traded A shares in the companys dual share structure dropped 25 cents to 90 cents, a decline of 22 per cent.

CanWest stock traded at $7.33 at the start of the year.

One analyst from a major Toronto bank said Canwest has to make some pretty significant cost-cutting measures in light of its tough balance sheet.

They own assets that obviously dont have a lot of growth attached to them theyre cyclical in terms of advertising spending, said the analyst speaking on condition he not be identified.

You couple that with a pretty heavily indebted balance sheet, and the equity market in this type of environment does not like that combination.

At the same time, the analyst said, the company is operating its assets really well but is facing stiff financial headwinds.

Canwest is due to announce its fourth-quarter results over the next few days.

Controlled by the Asper family, Canwest is an international media company with interests in television, newspapers and the Internet in Canada, Australia, New Zealand, Indonesia, Malaysia, Singapore, Turkey, U.K and U.S.

Among other properties, it owns the Global television network and the National Post daily as well as several big-city newspapers across Canada.

Organizations: Canwest, TSX, Toronto bank National Post

Geographic location: TORONTO, Canada, Australia New Zealand Indonesia Malaysia Singapore Turkey U.S.

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