TORONTO — Corus Entertainment has provided an update regarding its response to the Covid-19 outbreak, while also trying to address rumours circulating regarding the company’s liquidity and compliance with its loan covenants.
In the company’s Covid-19 update, Corus president and CEO Doug Murphy says the company remains committed to delivering high-quality news and entertainment programming across multiple platforms to audiences across the country.
“The health, safety and well-being of our people is our utmost priority. We’ve focused the support efforts of our internal technology team to enable as many people as possible to work from home. For those job functions that require on-site presence, we are creating a safe environment through measures such as reduction of the number of staff on our premises at one time in order to enable the required distancing and increased frequency of cleaning,” Murphy writes.
“Internally our teams are meeting daily across all areas of the business to monitor, address, and respond to the latest developments as guided by the World Health Organization, the Government of Canada and nuances by province. We are regularly undertaking their recommended precautions to minimize risk of virus transmission,” Murphy adds.
Corus is asking its staff to conduct business via Skype or teleconference wherever possible to respect safe distancing, and the company has also restricted all travel.
In terms of how the company is supporting advertising clients, Corus’ creative teams are set up across the country to continue to help marketers connect with consumers and communities in the coming weeks, Murphy says.
“It’s important for the health of our economy that we continue to look for opportunities to innovate and support Canadians during this period of uncertainty, as well as to deliver products and services to keep our country running. Our audiences are very much engaged with news and entertainment programming during these extraordinary times, and provide a continued opportunity for you to reach consumers,” he writes.
“Corus fully supports its production partners and the decisions being made to ensure the health and safety of all staff, cast, and crew in light of Covid-19. As each production differs in nature, location, and scale, decisions are being made on a case by case basis in accordance with the guidance from local health organizations,” Murphy adds.
With regards to supporting its viewers during the ongoing Covid-19 situation, Corus has extended national free previews of several of its networks to Canadians, as Cartt.ca reported last week. Cable providers who are offering free previews of Corus channels include Rogers, Bell, Videotron, Telus, Cogeco, Eastlink and SaskTel. Also, smaller TV providers such as Access Communications, Westman Communications and Quadro Communications and others have announced previously they are offering free previews of all of Corus’ 28-plus channels.
Writing about Corus’ Global News coverage during the Covid-19 pandemic, Murphy writes: “We want to assure our viewers that Global News is committed to continuing to provide local newscasts in television markets where we operate, to the extent possible. One of our foremost responsibilities to the public is to provide reliable information, particularly in times of crisis. Our journalists are following new protocols to interview subjects from a distance, and we are implementing multiple precautions to ensure we can continue to provide local news for our communities.”
Murphy adds: “Global News remains committed to serving our audiences through accurate, timely and fact based information through our multiple platform offerings: radio, television news and digital platforms such as Globalnews.ca and our new Global TV app which offers a free 24/7 news offering.”
In a news release issued Monday morning, Corus attempted to allay concerns regarding the company’s liquidity, while also announcing it will release its second quarter financial results on Wednesday, April 1.
“Although Corus’ practice is not to comment on rumours or speculation, Corus has become aware of extensive rumours regarding the company’s liquidity and compliance with covenants provided under its bank credit facilities in light of ongoing developments associated with the Covid-19 virus. As disclosed in connection with Corus’ first quarter fiscal 2020 results, as at November 30, 2019, the Company had a cash and cash equivalents balance of $64.2 million and had available approximately $300 million under its committed revolving credit facility, which matures on May 31, 2023, all of which could have been drawn. In addition, the company disclosed that it was in compliance with all of its loan covenants,” reads the news release.
“At February 29, 2020, the company’s $300 million committed revolving credit facility remained undrawn and the company had the full amount available to be drawn. The company is in compliance with all of its loan covenants. Corus will provide its quarterly update regarding its liquidity and indebtedness in connection with its second quarter financial results on April 1, 2020,” the release concludes.
