Canadian mass media company Corus Entertainment has announced that it will temporarily suspend its dividend due to weaker demand for advertising, which is putting pressure on the company's financial position. In an effort to address this challenge, Corus will redirect capital that would have been allocated for dividends towards debt repayment.
The recent strikes by the Writers Guild of America and The Screen Actors Guild-American Federation of Television and Radio Artists have extended for a longer duration than anticipated, further exacerbating the decline in advertising demand and revenue.
Despite these challenges, Chief Executive Doug Murphy emphasized the company's proactive approach to navigate through the current softer advertising economy. Corus Entertainment is focusing on optimizing its operations and increasing efficiency to mitigate the impact of the advertising downturn. By streamlining its operating model and transforming into a multi-platform aggregator of premium video, Corus aims to enhance its cross-platform monetization capabilities.
Through these strategic efforts, Corus Entertainment is determined to weather the storm and continue providing high-quality media content in an evolving industry landscape.
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