Company slashed jobs, sports contract
TORONTO — Troubled Headline Media Group announced declining losses in the second quarter, after implementing dramatic cost-cutting measures to turn the company around in late 2002.
The net loss for the second quarter ended Feb. 28 was C$2.3 million ($1.6 million), an improvement on the loss a year ago of $2.8 million. Revenue for the quarter was $5.4 million, down from $6.6 million the previous year’s second quarter, due to lower ad revenue in the company’s sports and entertainment marketing group.
Late in 2002 the company halved the workforce at its gay and lesbian specialty channel PrideVision, and continues to look for a partner or buyer for the struggling diginet. It also terminated its major league baseball contract for specialty channel the Score, and saw its stock sink from about $1.30 to pennies a share. Alliance Atlantis Communications in short order wrote down its 33% interest in Headline Media Group from $18.3 million to $2.1 million.