And while reporting record profits the company has blundered on supporting the money losing National Pest and then there is their spin off free paper the Dose that has given them the financial clap, losing them money.
Analyst questions CanWest papers' viabilityAfter talk of cost cutting at CanWest Global Communications Corp. this week, the media company is facing tough questions from an analyst at BMO Nesbitt Burns Inc. about the viability of some of its publications.
In a research note to clients, Tim Casey raised concerns yesterday about the future of CanWest's free daily publication, Dose, which began eight months ago and is losing money. The analyst also maintained a bearish outlook for the flagship National Post newspaper, a competitor of The Globe and Mail.
"We would not be surprised to see the Post and Dose publications close down in this fiscal year. We ascribe no value to either asset in our valuation," Mr. Casey said in the note.
Responding to the comments, CanWest chief executive officer Leonard Asper said there are no plans to alter the course of either newspaper in the next three years.
"I think the analysts are a little off the mark there," Mr. Asper said, adding that Dose has not made money but is still in its start-up phase. "Any business takes some time, a few years -- usually three is the standard -- of losses before you start to get some profits."
In a week that saw most of the country's biggest media companies report their first-quarter earnings, CanWest's results were behind the pack. Dose is part of the CanWest MediaWorks Income Fund, a trust spun out last fall with most of the company's newspaper assets.
CanWest MediaWorks told analysts Wednesday that the trust is scaling back the distribution and size of Dose. However, Mr. Asper said he remains "bullish" on Dose.
The trust, which does not include the National Post, made a profit of $30.7-million in its first quarter since the conversion, compared with $20.9-million for the comparable assets a year earlier. However, most of those gains came from the tax advantages of converting to an income trust, the company said.
As I reported here Canwest was a major contributor to Harpers Leadership campaign.
And despite making record profits this year, Canwest still plans to lay off workers, in order to increase their profitability for next year.
Yep thats Corporate Canada business as usual screw the workers to make more profit. Sounds like the Conservative party is in good company with these guys.
CanWest CEO says it will take time to revive laggard Canadian television operations
Also see my article on Canwest Editorializing in Newstories about the election now that David Asper has endoresed the Conservatives.
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